Bitcoin and Inflation - page 2. | Bitcointalksearch.org

Ziskinberg

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Quote from: eaLiTy on March 04, 2019, 07:09:16 AM

Inflation means an increase in price and fall in purchasing .Bitcoin have a limited supply of coins to mine and so now it has come to a deflation state so the power of purchasing may increase since the amount of Bitcoin is limited the difficulty of mining will be impossible as more people try to mine. So automatically Bitcoin software will increase the difficulty in mining .

Bitcoin is a good store of value and can combat inflation, provided the price will be stable going uptrend, but if we will continue to experience
the current state, this would make no sense even if it has all the quality to become a non inflation currency, this would only apply on currency that are already stable and unfortunately, BTC is not at the moment.

So, if we can wait until that time will be realize, then maybe we will find the right purpose of investing BTC.

richmcrich

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Good stores of value are always scarce. Bitcoin moves according to the supply and demand and when the demand is low, you will see that the price starts to drop , unlike when the demand is high.

This article here explains why bitcoin is technically an inflationary currency - https://fee.org/articles/why-bitcoin-is-technically-an-inflationary-currency-even-though-its-purchasing-power-is-increasing

I think you should go through the article and it will help you understand some things.

eaLiTy

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Inflation means an increase in price and fall in purchasing .Bitcoin have a limited supply of coins to mine and so now it has come to a deflation state so the power of purchasing may increase since the amount of Bitcoin is limited the difficulty of mining will be impossible as more people try to mine. So automatically Bitcoin software will increase the difficulty in mining .

GregH37

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Quote from: virasog on March 01, 2019, 08:44:14 AM

Quote from: sfr2017 on March 01, 2019, 01:01:09 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.

Yes, bitcoin can protect us from inflation and there is no possibility of inflation because of its limited supply which cannot be increased. It may be decreased as those wallets whom private key are lost, they bitcoins stored in them are unrecoverable.

The main thing to consider is that people should use it as a currency and if it is mostly used as a trading assets, then we can never get rid of fiat.

I think it will be difficult to get rid of fiat because irrespective of bitcoins usage as a currency, there will always be many who would prefer to have it as a trading asset and am sure we do not expect it to correct inflation this way. So, it is kind of clear that bitcoin cannot help control inflation, it is the government putting certain policies in place, and one of such could be complete adoption of bitcoin as their only means of exchange

Canoppo99

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Actually there are some people that immune to inflation but indirectly. Inflation only affect to people who only have fixed income, entrepreneurs who already have financial freedom actually not affected by inflation because they keep produce something. Industries loves inflation because industries can get more profit because of inflation. But honestly I think it's unfair, I hope most of people make their own industry, there is no inflation in bitcoin but it doesn't mean that industry will not get profit. It will still get profit because the price is rise and the velocity of money can be better.

Indamuck

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Bitcoin still has a higher inflation rate than USD. USD tends to have an inflation rate near 2% with it being higher some years. People always forget that gold has an inflation rate as well as more and more gold gets mined from the ground each year. We will start to see some big price increases after the next reward reduction.

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Quote from: Stac on February 28, 2019, 07:44:30 PM

Since Bitcoin has a limit of only 21 million of coins so in normally saying there is a deflation in Bitcoin because each year the coins reduces slightly by mining .and the Bitcoin has a limit and no doubling is expecting and so there is no chance of inflation occur in Bitcoin .there are only few ways that people store value either people store money in a bank or buy ornaments to stor e as value .Bitcoin is completely different from physical assets Bitcoin is a digital currency and this will be convenient to keep as an asset and useful .

Come on man. Last year Bitcoin had huge inflation because price in USD decreased greatly. In USD same as in hamburgers or bread or icecreams or cars or gold or whatever. But reason was not emission but extreme price growth in 2017.

Lets be real now. Bitcoins yearly emission is now like 4% a year. USD M1 yearly emission in last 10 years was 15%. They added 15% more UDS in circulation every year. This then over long term influence inflation. So decrease of value of currency. If Bitcoin would have 20% yearly emission hen over time when price of Bitcoin would stabilize would have quite nice inflation. But that will not happen since already next year bitcoins yearly emission will go under 2%.

gantez

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Quote from: iamTom123 on June 23, 2017, 04:23:39 AM

Only a controlled economy can be spared from inflation (though this is also debatable)....

It is a known fact that inflation has no business with bitcoin. Inflation can be in a controlled environment as you have rightly said and bitcoin is not controlled.

Quote from: iamTom123 on June 23, 2017, 04:23:39 AM

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.

Yes and I wonder the kind of hypothesis or theory that will be pushed in to invalidate what we already know and experiencing - that bitcoin is not inflation prone but rather, bitcoin can cause inflation because high rate of bitcoin price might mean too much money in the society when converted.

1Referee

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Quote from: efxtrader on March 01, 2019, 02:30:06 AM

Bitcoin could protect from inflation but could bring deflation because bitcoin have limited supply.

The limited supply is never an issue. It's only a matter of time before the price becomes expensive enough so that we deal with Satoshi units only, and as you may know already, there is no shortage of Satoshi's.

In the end, it all comes down to the price; if the price is high, you can buy more with x amount of coins, while if the price is low, you need to add coins in order to buy the same goods you bought when the price was high. Pretty similar to fiat actually.

Quote from: efxtrader on March 01, 2019, 02:30:06 AM

Inflation should controlled by money supply but i think we should back to gold standart

Bitcoin standard is better.

virasog

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Quote from: sfr2017 on March 01, 2019, 01:01:09 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.

Yes, bitcoin can protect us from inflation and there is no possibility of inflation because of its limited supply which cannot be increased. It may be decreased as those wallets whom private key are lost, they bitcoins stored in them are unrecoverable.

The main thing to consider is that people should use it as a currency and if it is mostly used as a trading assets, then we can never get rid of fiat.

St4yInTh3D4rk

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Quote from: efxtrader on March 01, 2019, 02:30:06 AM

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

Deflation also not good for the economy but in bitcoin there is no inflation or deflation everything just set up by the market demand ans supply.But bitcoin will not control anything until we are converting it into fiat,which will make the price of bitcoin go higher against USD but again it will cause inflation on the fiat money which will impact the world's economy.

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Quote from: iamTom123 on June 23, 2017, 04:23:39 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.

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.

efxtrader

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

sfr2017

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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.

LUCKMCFLY

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Quote from: Stac on February 28, 2019, 07:44:30 PM

Since Bitcoin has a limit of only 21 million of coins so in normally saying there is a deflation in Bitcoin because each year the coins reduces slightly by mining .and the Bitcoin has a limit and no doubling is expecting and so there is no chance of inflation occur in Bitcoin .there are only few ways that people store value either people store money in a bank or buy ornaments to stor e as value .Bitcoin is completely different from physical assets Bitcoin is a digital currency and this will be convenient to keep as an asset and useful .

I think the same, and for that reason it is that this economy escapes any theory that any economist who studies traditional economics can do.
In any nation, money is printed and it is pure paper, which loses value, it is a supply that turns into water and salt.

Stac

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Since Bitcoin has a limit of only 21 million of coins so in normally saying there is a deflation in Bitcoin because each year the coins reduces slightly by mining .and the Bitcoin has a limit and no doubling is expecting and so there is no chance of inflation occur in Bitcoin .there are only few ways that people store value either people store money in a bank or buy ornaments to stor e as value .Bitcoin is completely different from physical assets Bitcoin is a digital currency and this will be convenient to keep as an asset and useful .

nicster551

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Quote from: iamTom123 on June 23, 2017, 04:23:39 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 guess that crypto would still be affected by inflation. Nothing saves from it only what you can do about that save you by or like making a lot of stream of income.

xabre

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Bitcoin still lower price and not the same situation where last year bitcoin have touch to higher price, maybe we need wait until when bitcoin will growing up more than one year later.

2chase

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Naturally, Bitcoin will be exactly the asset that will be a vivid example of how the deflation currency should look like, if it were not so, we would not see this constantly continuing rise in the price of Bitcoin during these seven years. Bitcoin is a pioneer in this regard and it will remain for them for many years.

BitHodler

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Quote from: Guryon_master on December 29, 2018, 11:48:44 AM

The bull run is a good hope but to combat the inflation but a bad luck to others who don't have the will to hold it when the bearish attack.

It's not about will, but about understanding what you put your money into, and what Bitcoin has been doing consistently for years, which is to mark higher bottoms continuously since its very first exchange listing.

Bottom to bottom is what people should pay attention to, because that indicates the actual growth we have gone through, and not all time highs people look at and think Bitcoin has failed because the price dropped a lot.

Overall, Bitcoin only needs a short time frame to undo decades worth of fiat's loss in purchasing power. Don't get lost worrying about last year's all time high, because it will be a bottom eventually.

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