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**Reluctant to Be Compared to Fiat, Satoshi Claims Bitcoin Is Impossible to Experience Inflation**

Satoshi Nakamoto emphasized that Bitcoin cannot experience inflation like fiat currencies, after criticism that his system would be affected by the continuously increasing speed of computers.

He made the statement in an email on November 8, 2008, responding to allegations that Bitcoin experiences an inflation rate of 35% per year.

In his explanation, he emphasized that the Bitcoin proof-of-work system is designed for the mining difficulty level to continuously adjust.

If the network's computing power increases, the difficulty level automatically rises so that the number of blocks created remains stable per hour. This means that, despite technological advancements, Bitcoin production remains controlled and does not spike wildly.

Satoshi also emphasized that the number of Bitcoins created each year has been predicted long in advance, as the issuance rate is designed to remain steady until it reaches the maximum limit of 21 million coins.

He explained that the increase in the number of Bitcoins does not automatically create inflation, unless the supply increases faster than the number of users. Conversely, if demand grows faster, the value of Bitcoin could actually experience deflation.

According to him, new coins must indeed be distributed at the beginning, and a constant issuance rate is the fairest method. With this mechanism, Bitcoin remains scarce and cannot be printed arbitrarily like central bank currencies.

-Source: Crypto Academy