Deflation

Deflation is a macroeconomic term that refers to the decline of the general prices of goods and services within the economy. There are a plethora of reasons due to which prices can decline. Be it lower productivity in the economy, declining demands, or sheer advancement in technology.

In the crypto world, deflation refers to a cryptocurrency’s maximum supply. Over time, the circulating supply of any given coin would reduce. Losing private keys, making such coins unrecoverable has a huge role to play as well. In fact, there are several cryptocurrencies that follow a deflationary nature.