Bitcoin and Inflation | Bitcointalksearch.org

TheUltraElite

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Quote from: gantez on March 21, 2019, 11:32:58 AM

Price decline should not have anything with inflation or deflation. I think decline can be linked with patronage which interacts with acceptance. The decline can be caused by so much hype which had a negative effect at the long run as a bubble but price are beginning to pick again.

Decline and inflation are not directly related. Decline in use causes people to sell that asset since they can no longer see any use-case of that asset and thus they decide to encash their loss and move on to other assets. That is one option in case you are holding a speculative asset. But for bitcoin you can be safely assured that its price will rise in future due to increasing adoption and deflation due to mining subsidy reductions.

Quote from: iged_war on March 22, 2019, 02:39:58 AM

in my opinion all thing in this world that have price correlated with inflation.even gold that mentioned as investment that free from inflation also affected by inflation.and so do with bitcoin and other cryptocurrency.

Gold has an inflation rate because it is produced and the total circulation gradually increases with time. Bitcoin also is produced but production will stop at one time.

semobo

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Quote from: LUCKMCFLY on March 22, 2019, 12:52:15 PM

Inflation occurs when a lot of cash is printed in a traditional economy, and bitcoin represents a totally deflationary and decentralized economy.

Every economy that is controlled, will always suffer from inflation, in the bitcoin economy, the movements will be given by the Law of Supply-Demand, and some theories that can describe them are those that they name in the book of Master the Markets, of Tom Williams, where the main indicator of market direction is given by the volume of transactions.

That is why in a country with high inflation, individual economies can benefit when people work with bitcoin or altcoins, because it will be well above the value of inflation that is in the traditional economy of the country.

In the book by José Toro Hardi, a well-known economist in South America, he talks about currency exchange, when a traditional currency change occurs in a nation, it can improve, since inflation is eliminated, and it is equated with a strong currency Like the Dollar or Euro, at that time can improve the economy, but if the centralization is very strong, in a very short period of time, they will return to the same inflation problems.

Even if there is no inflation on the bitcoin still it suffers from volatility and manipulations which is the things stopping it to be used as currency mode.

But there are some people who faced hyper inflation used to save their wealth from converting into bitcoin but what will happen if everyone following this.

virendarnagpal

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Domestic inflation works within the boundaries of the country.. The prices of commodities increasing or purchasing power of the currency falling means inflation.
International inflation affects prices in almost all the countries at certain point of time. Suppose the supply of oil decreases the price will shoot up internationally and so the purchasing power of currencies of almost all the countries will be affected.
Inflation has very little effect on bitcoin. We have seen hyper inflation in some countries where bitcoin working very smoothly i.e. national currency failing due to inflation but bitcoin having no effect of inflation.

LUCKMCFLY

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Inflation occurs when a lot of cash is printed in a traditional economy, and bitcoin represents a totally deflationary and decentralized economy.

Every economy that is controlled, will always suffer from inflation, in the bitcoin economy, the movements will be given by the Law of Supply-Demand, and some theories that can describe them are those that they name in the book of Master the Markets, of Tom Williams, where the main indicator of market direction is given by the volume of transactions.

That is why in a country with high inflation, individual economies can benefit when people work with bitcoin or altcoins, because it will be well above the value of inflation that is in the traditional economy of the country.

In the book by José Toro Hardi, a well-known economist in South America, he talks about currency exchange, when a traditional currency change occurs in a nation, it can improve, since inflation is eliminated, and it is equated with a strong currency Like the Dollar or Euro, at that time can improve the economy, but if the centralization is very strong, in a very short period of time, they will return to the same inflation problems.

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Quote from: nur rochid on March 21, 2019, 11:07:20 PM

Quote from: karloscimot on March 21, 2019, 08:44:40 PM

Quote from: SvenBomvolen on June 23, 2017, 05:34:05 AM

It's known fact that bitcoin and inflation are not going together. Word inflation can used only to fiat, which is centralized and depended from country's gold wealth. Bitcoin have nothing with that and it's price is growing only cause of the demand, but not inflation.

perhaps what is meant is the presence of bitcoin can overcome inflation in a country, by becoming an alternative currency for business actors affected by inflation to be able to switch to using bitcoin as a means of payment between countries. that might be the right one.

but it should also be thought that volatile bitcoin is very large, when the upward trend may be a much greater increase than inflation, but when plunging throughout the year, there will be losses

in my opinion all thing in this world that have price correlated with inflation.even gold that mentioned as investment that free from inflation also affected by inflation.and so do with bitcoin and other cryptocurrency.

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Quote from: karloscimot on March 21, 2019, 08:44:40 PM

Quote from: SvenBomvolen on June 23, 2017, 05:34:05 AM

It's known fact that bitcoin and inflation are not going together. Word inflation can used only to fiat, which is centralized and depended from country's gold wealth. Bitcoin have nothing with that and it's price is growing only cause of the demand, but not inflation.

perhaps what is meant is the presence of bitcoin can overcome inflation in a country, by becoming an alternative currency for business actors affected by inflation to be able to switch to using bitcoin as a means of payment between countries. that might be the right one.

but it should also be thought that volatile bitcoin is very large, when the upward trend may be a much greater increase than inflation, but when plunging throughout the year, there will be losses

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Quote from: SvenBomvolen on June 23, 2017, 05:34:05 AM

It's known fact that bitcoin and inflation are not going together. Word inflation can used only to fiat, which is centralized and depended from country's gold wealth. Bitcoin have nothing with that and it's price is growing only cause of the demand, but not inflation.

perhaps what is meant is the presence of bitcoin can overcome inflation in a country, by becoming an alternative currency for business actors affected by inflation to be able to switch to using bitcoin as a means of payment between countries. that might be the right one.

gantez

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Quote from: andriarto on March 10, 2019, 12:29:11 PM

even though at this time the price is declining, but we can calculate what percentage of the increase in the price of btc

Price decline should not have anything with inflation or deflation. I think decline can be linked with patronage which interacts with acceptance. The decline can be caused by so much hype which had a negative effect at the long run as a bubble but price are beginning to pick again.

TheUltraElite

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Quote from: Greed Dev on March 15, 2019, 10:02:38 AM

I think it is an anti-inflation agent and not an increase in inflation.

Bitcoin is itself a deflationary currency. Not anything to do with anti-inflation. Such a thing does not exist yet.

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Because the more people who hold more bitcoin, the whales will lose more manipulative power and our market will be able to balance in the near future.

Whales never lose their manipulative power. It is not only about money you see, it is also about the market psychology since we have a lot of broke traders trying to grab every piece of coin that they essentially can.

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Besides, when the price of bitcoin is too high, investors will also know how to reduce growth so that the economy becomes balanced.

Not sure what you mean by "reduce growth". Growth of what exactly? If you are saying about bitcoin then its growth is irreversible and prices will rise in future without any doubt.

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Bitcoin is a great tool to combat inflation in fiat money and it will soon be known.

Let us hope for the future bullrun and strengthen our fundamental knowledge.

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Quote from: iamTom123 on June 23, 2017, 05:23:39 AM

Only a controlled economy can be spared from inflation (though this is also debatable). In an open market like we are enjoying right now, inflation is a matter of fact and is part of the reality of life. Nobody is immune from the power of inflation.

Inflation happens when when the price of goods/services rise up and the money you are holding has less purchasing power like it has before. When inflation rate is going up what is happening is that our money's purchasing is going down. For example, if one bar of soap can cost $1 and the inflation is 5% then there is a possibility that soon the cost of that soap can be $1.05 or maybe what the soap manufacturer would do is reduce the quantity and quality side so that the price remains but the same product is not there anymore.

Now, talking about inflation, I am wondering if Bitcoin can be an anti-inflation agent or will it even induce inflation to a higher level?

There have been many discussions -- continuing discussions in fact -- on this subject and still there is no definite answer maybe because Bitcoin is still relatively new and theories/speculations are still waiting for validation.

I think it is an anti-inflation agent and not an increase in inflation. Because the more people who hold more bitcoin, the whales will lose more manipulative power and our market will be able to balance in the near future.
Besides, when the price of bitcoin is too high, investors will also know how to reduce growth so that the economy becomes balanced.
Bitcoin is a great tool to combat inflation in fiat money and it will soon be known.

Bit_Discourse

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Quote from: iamTom123 on June 23, 2017, 05:23:39 AM

Only a controlled economy can be spared from inflation (though this is also debatable). In an open market like we are enjoying right now, inflation is a matter of fact and is part of the reality of life. Nobody is immune from the power of inflation.

Inflation happens when when the price of goods/services rise up and the money you are holding has less purchasing power like it has before. When inflation rate is going up what is happening is that our money's purchasing is going down. For example, if one bar of soap can cost $1 and the inflation is 5% then there is a possibility that soon the cost of that soap can be $1.05 or maybe what the soap manufacturer would do is reduce the quantity and quality side so that the price remains but the same product is not there anymore.

Now, talking about inflation, I am wondering if Bitcoin can be an anti-inflation agent or will it even induce inflation to a higher level?

There have been many discussions -- continuing discussions in fact -- on this subject and still there is no definite answer maybe because Bitcoin is still relatively new and theories/speculations are still waiting for validation.

I think that rather there will be no inflation, but just a fairly good volatility. And basically all of this will be used as earnings and exchange for fiat currency.

TheUltraElite

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Quote from: Pab on March 10, 2019, 02:16:01 PM

I have been reading that after halving bitcoin inflation will be 1.8% what is below gold inflation
But bitcoin is no so much economy it is currency or asset what can be adopted by economy

Well do we really need that much adoption that it becomes the mainstay? That concept still seems pretty longshot and utopian and something that is ideal and thus probably wont be seen. Fiat will go hand and hand and some people prefer to use one or both for their own purpose depending on feasibility of usage and other factors.

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Cup of coffee will be priced in fiat money not bitcoin for i think long time

True. Those things will be following fiat and bitcoin is for the current generation a good investment if bought at low price. Lets keep it like that and buy more to stock up. Grin

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Whatever if Bakkt will launch finally than customers will have choice pay with btc or dollar for cup of Starbucks coffee

Bakkt is old story now. Time to move on dude. Wink

Pab

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I have been reading that after halving bitcoin inflation will be 1.8% what is below gold inflation
But bitcoin is no so much economy it is currency or asset what can be adopted by economy
Cup of coffee will be priced in fiat money not bitcoin for i think long time
Whatever if Bakkt will launch finally than customers will have choice pay with btc or dollar for cup of Starbucks coffee

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Quote from: rocketbits on March 10, 2019, 12:08:09 PM

I do not see any correlation between bitcoin and inflation. It’s the economy of each country that determines if they experience inflation or not while it is the adoption or acceptance of bitcoin that determines its increase in value.The government of a country can find a way out to or implement policies to correct inflation but bitcoin on the other hand has a decentralized system.

indeed there is no link between the two, but the increase in the price of bitcoin is greater, compared to the increase in inflation that occurred. even though at this time the price is declining, but we can calculate what percentage of the increase in the price of btc from the beginning of the year of creation

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I do not see any correlation between bitcoin and inflation. It’s the economy of each country that determines if they experience inflation or not while it is the adoption or acceptance of bitcoin that determines its increase in value.The government of a country can find a way out to or implement policies to correct inflation but bitcoin on the other hand has a decentralized system.

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Quote from: efxtrader on March 01, 2019, 03:30:06 AM

Quote from: sfr2017 on March 01, 2019, 02:01:09 AM

I think Bitcoin will protect against inflation, and even hyper-inflation, if the demand for it continues to keep place with the growth in supply. That will only happen if people continue to use it as currency.

Inflation or deflation are same dangerous for our economy. Bitcoin could protect from inflation but could bring deflation because bitcoin have limited supply. Inflation should controlled by money supply but i think we should back to gold standart

I don’t think that told itself is a better option, Gold is inflationary too. The reason why many people consider gold as a better store for value is because of its scarcity. No one can will it existence , except nature (so nature is in control of that Cheesy

). That’s why a lot of people are considering gold as a better option when it comes to storing their value.

TheUltraElite

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Quote from: vixcious on March 05, 2019, 09:24:12 AM

Bitcoin is an agent against inflation. deflation occurs when the supply is infinite and the price of the product is raised at an unreasonable level. but BTC's supply is limited and it has Halving events and it makes the value of BTC increase. That's why many of Vene's people bought BTC when their fiat money was inflated.

Typically good case of how a deflationary currency can bring out changes for the betterment of humans. I hope in future governments assume the use of crypto to be borderless and without any legal problem. It will open up a number of avenues for traditional investors to put some assets in bitcoin holdings.

The reason infaltion kills the value is pretty much known to people everywhere now. But something that is deflationary will be always attracting attention because that is what really draws FOMO. However I am not sure what people in this thread are meaning by "bitcoin standard" - Think about buying groceries with bitcoin where 1 satoshi = 1USD. Grin

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Quote from: iamTom123 on June 23, 2017, 05:23:39 AM

Only a controlled economy can be spared from inflation (though this is also debatable). In an open market like we are enjoying right now, inflation is a matter of fact and is part of the reality of life. Nobody is immune from the power of inflation.

Inflation happens when when the price of goods/services rise up and the money you are holding has less purchasing power like it has before. When inflation rate is going up what is happening is that our money's purchasing is going down. For example, if one bar of soap can cost $1 and the inflation is 5% then there is a possibility that soon the cost of that soap can be $1.05 or maybe what the soap manufacturer would do is reduce the quantity and quality side so that the price remains but the same product is not there anymore.

Now, talking about inflation, I am wondering if Bitcoin can be an anti-inflation agent or will it even induce inflation to a higher level?

There have been many discussions -- continuing discussions in fact -- on this subject and still there is no definite answer maybe because Bitcoin is still relatively new and theories/speculations are still waiting for validation.

Bitcoin is an agent against inflation. deflation occurs when the supply is infinite and the price of the product is raised at an unreasonable level. but BTC's supply is limited and it has Halving events and it makes the value of BTC increase. That's why many of Vene's people bought BTC when their fiat money was inflated.

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Quote from: Ranly123 on March 01, 2019, 06:26:30 AM

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As what we have witnessed, Bitcoin is not an antibiotic inflation prospect. We've seen it grow high and now it goes back to what it has been known. I can't say it can help lessen the inflation of a country but atleast it can help the people have other option for a business evolution.

It depends on what time frame you are talking about. People who bought BTC before August 2017 are still in profit. The highest price for 1 Bitcoin before Aug 2017 was $2,705 and it's $3,780 today. 40% rise for your investment in 19 months is still a good achievement. And I think it's almost certain that in 19 months from now Bitcoin price will be much more than just 40% higher. Of course I can be wrong. I know that I can lose with pocket Aces preflop. But my point is that BTC is like AA; USD, CHF and EUR are like KK; GBP is like QQ etc. Anything can happen, but normally Bitcoin has all the chances to perform better than others.

daarul50

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I was surprised and always wondered, why is Bitcoin always associated with inflation problems? even bitcoin is said by some observers of the world economy to be the cause of inflation in the world economy. So far, since the birth of bitcoin I have never heard that inflation is so severe in the world economy, on the contrary, bitcoin can be a solution if inflation really happens.

Topic: Bitcoin and Inflation (Read 1156 times)