Definition ∞ Bitcoin economics examines the economic principles and forces governing the Bitcoin network and its native asset. This includes its fixed supply schedule, halving events, and decentralized monetary policy. It analyzes how these characteristics influence its value, adoption, and role within the broader financial landscape. The system design promotes scarcity and predictable issuance.
Context ∞ Debates in Bitcoin economics often center on its status as a store of value, its correlation with traditional assets, and its potential as an inflation hedge. The impact of macroeconomic conditions and regulatory developments on Bitcoin’s market behavior is a constant subject of analysis. Understanding these economic drivers is key to interpreting its price movements and market sentiment.
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