Because Bitcoin cannot compensate for lost coins, and there should be a monetary deflation year after year, despite the steady inflation due to the increase in supply, Bitcoin has a monetary deflation. That would depend on how much Bitcoin is removed from the supply. Bitcoin will eventually be deflationary, since the supply will increase to zero.



Bitcoin's maximum supply cap and its reward schedules are fixed from the beginning, so the rate of monetary inflation (or deflation) cannot be changed unless everyone agrees. It is impossible to predict whether Bitcoin will become more valuable or less valuable as time goes on.

Bitcoin is often touted as a hedge against inflation due to its limited supply of 21 million coins, which contrasts with fiat currencies that can be printed indefinitely. This scarcity is designed to preserve value over time, especially in economies experiencing high inflation or currency devaluation. However, Bitcoin's resistance to inflation is not guaranteed, as its value is highly volatile and influenced by market speculation, regulatory changes, and adoption rates. Unlike traditional inflation-resistant assets like gold, Bitcoin lacks intrinsic value and is still relatively new, making its long-term stability uncertain. While it has shown potential as a store of value during certain economic conditions, its effectiveness in resisting inflation depends on widespread trust, adoption, and its ability to maintain purchasing power over time.