#Firstdealofthenewyearastylz Bitcoin deflation: Double-Edged SwordDeflation is often perceived as a rare economic phenomenon, typically occurring when the purchasing power of a currency increases over time due to a limited or shrinking supply. Bitcoin, with its fixed supply of 21 million coins, is inherently deflationary. Unlike fiat currencies, which can be printed indefinitely by central banks, Bitcoin’s controlled issuance and decreasing supply create an economic system where scarcity plays a significant role.While deflation in Bitcoin can be beneficial—encouraging long-term saving and wealth preservation—it also presents potential drawbacks, such as reduced spending, economic stagnation, and security concerns for the Bitcoin network. This article explores why Bitcoin’s deflation is a double-edged sword, highlighting both its advantages and risks.