Disinflation means inflation is still happening but at a decreasing pace. In Bitcoin, new BTC are minted with each block, so there’s inflation relative to total supply—albeit on a strictly declining schedule. Every 210,000 blocks, the block subsidy halves, lowering Bitcoin’s inflation rate.

Compared to fiat currencies with flexible monetary policy, Bitcoin’s supply growth is mathematically locked in, eventually approaching zero inflation once the total supply nears 21 million. This is a key narrative for Bitcoin as ‘digital gold’—fostering a perception of scarcity and long-term store-of-value potential.