Anti-inflation or deflation is also very dangerous for economics. Inflation decreases the value of currency. Deflation is the opposite phenomenon, where the number of currency decreases compared to ownership. The ultimate version of hyperdeflation is that all other money than one single Euro is erased from the central bank. That means that the entire state can be bought with one euro. That is one of the things that can cause destruction.
But then we can remember that the outside value of that Euro is ultimate. The outer and inner values of currency can be different. And the outside value means. The value compared to some other currency. There is a possibility that some hackers will make the computer break into some state’s or EU central bank. And then just erase all currency.
1) Inflation: on-purpose and non-controlled decreases currency value.
2) Devaluation: the central bank's Purpose and control decrease currency value compared to some other currencies.
3) Deflation: non-purpose or non-controlled increase of currency value.
4) Revaluation: proposal and controlled increase of currency value.
That can happen by destroying the registers that involve serial numbers of physical notes. And the same hackers can destroy the databases that keep books of digital currency. Hyperinflation is a thing that can be more dangerous than inflation. When we think about things like currencies their values are connected with other currencies. The currency’s value is determined by how much currency is in the markets. This is the thing that makes the dollar a very special currency.
When the dollar is the locomotive of world economics there is lots of currency that is out of the USA. If that currency that is partially connected to cryptocurrencies will return to markets or return to home, that causes acceleration of inflation. That happens by exchanging dollars to some other currency.
But if lots of dollars suddenly vanish like in the bank accounts of the cryptocurrency companies. Or simply destroyed by some hackers. That causes deflation.
The central bank, the Fed must make more money to put the currency value at a stable level. If the Fed doesn’t make that money that causes deflation. And if that money comes back to markets, that causes inflation because there is more currency at markets compared with the ownerships that the state has increased. Because there is more money compared to state ownerships than before. But if the number of the currency decreases compared to state ownerships that causes deflation.
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