Bitcoin and Inflation - page 4. | Bitcointalksearch.org

Febo

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Quote from: mashort on November 09, 2018, 08:30:50 AM

Quote from: pereira4 on June 24, 2017, 08:45:20 PM

The inflation of bitcoin is predictable and it's set in stone:

Anyone that tries to modify this will meet the strongest resistance. It is not a problem for bitcoin to have a limited supply because the price will keep going up with the demand, and the unit of account can be divided as small as needed. Bitcoin's inflation becomes almost unnoticeable by 2030, which is why by then, the price will be extremely high.

please explain this point further, what do you mean when you say bitcoin's inflation is predictable?

It is not, because we never know how many coins is lost that year. If none is lost then yes it is predictable. You divide number of freshly issued coins with all coins in existence. But to get real inflation you need to divide with only all available coins. Not the ones that people lose private keys. And there is lots and lots of such.

RockHenki

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Inflation is really the threat of all humanity. And now it is taking place day by day in the regions of the world. It is difficult to control inflation, it is happening with real money, Bitcoin can also be inflation if you use the wrong purpose, the law. So to avoid that situation, you should invest and spend bitcoin reasonably and appropriately.

Indamuck

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A lot of people are getting into bitcoin because their nation's currency has inflation rates set by government that can be changed at anytime. We have already seen the inflation crisis in Zimbabwe and Venezuela and how it devastated the citizens. Bitcoin inflation is set by code and can't be changed without a fork. I would rather trust math over a central party with complete control.

mashort

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Quote from: pereira4 on June 24, 2017, 08:45:20 PM

The inflation of bitcoin is predictable and it's set in stone:

Anyone that tries to modify this will meet the strongest resistance. It is not a problem for bitcoin to have a limited supply because the price will keep going up with the demand, and the unit of account can be divided as small as needed. Bitcoin's inflation becomes almost unnoticeable by 2030, which is why by then, the price will be extremely high.

please explain this point further, what do you mean when you say bitcoin's inflation is predictable?

pereira4

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The inflation of bitcoin is predictable and it's set in stone:

Anyone that tries to modify this will meet the strongest resistance. It is not a problem for bitcoin to have a limited supply because the price will keep going up with the demand, and the unit of account can be divided as small as needed. Bitcoin's inflation becomes almost unnoticeable by 2030, which is why by then, the price will be extremely high.

just_Alice

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Quote from: mrcash02 on June 24, 2017, 11:39:01 AM

BTC follows the dollar at this moment. As you said about the soap bar, if it's $1.00, we will pay 0.000371 BTC ($2700), with the 5% inflation the soap bar costs $1.05, so we will pay 0.00039 BTC.

The inflation isn't over BTC, but it affects BTC on the final price you will pay for your stuff.

That would be true if bitcoin's price was always stable, for example if it was always $2,700. But as we all know this is not the case. Using your examle with soap, when it is $1.00 we pay 0.000371 BTC ($2,700), but when it is $1.05 bitcoin can be $3,000 and then we pay 0.00034965 BTC which is even less than 0.000371 BTC.

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Quote from: mrcash02 on June 24, 2017, 11:39:01 AM

BTC follows the dollar at this moment. As you said about the soap bar, if it's $1.00, we will pay 0.000371 BTC ($2700), with the 5% inflation the soap bar costs $1.05, so we will pay 0.00039 BTC.

The inflation isn't over BTC, but it affects BTC on the final price you will pay for your stuff.

Very very good point. In fact, it has been eye-opening for me. As long as we cannot use Bitcoin directly and have to convert to dollar first, we will get the dollar inflation anyway, even though it may be compensated by the rises in value.

mrcash02

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BTC follows the dollar at this moment. As you said about the soap bar, if it's $1.00, we will pay 0.000371 BTC ($2700), with the 5% inflation the soap bar costs $1.05, so we will pay 0.00039 BTC.

The inflation isn't over BTC, but it affects BTC on the final price you will pay for your stuff.

carlisle1

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Quote from: Mometaskers on June 24, 2017, 09:27:58 AM

I may not have a solid grasp of economics but I believe almost everyone knows that inflation/deflation is a tool of the state since they have the ability to control the cash flow, printing and removing cash from circulation as they see fit. That's the main difference with bitcoin. The price is affected solely by demand and the number of bitcoins in circulation would be limited once all of it has been mined out.

I can't tell if it's safe to say that bitcoin is safe from inflation, since most of the time we value it in comparison to its fiat exchange, rather than by itself.

just thinking with the argument since bitcoin can be mined completely and after that the value will surely rise up to the extend that we cant imagine so for sure it can be safer than the current situation with fiat value as we knew that government is controlling everything so the power or the demands of my higher price or lower value of fiat is under them and that's the good thing with bitcoin currency inflation maybe reduce or completely nothing at all.

webtricks

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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.

Yes, Bitcoin is efficient enough to control inflation. This is because Bitcoin value is getting increased day-by-day so if someone holding n amount of Bitcoin, he can buy more with it today than what he could do year ago. Thus there is constant rise in purchasing power.
However, I wonder if we bring economy to homogeneous mode where Bitcoin is only currency without measuring its value in fiat, would there be increase in value!

Mometaskers

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I may not have a solid grasp of economics but I believe almost everyone knows that inflation/deflation is a tool of the state since they have the ability to control the cash flow, printing and removing cash from circulation as they see fit. That's the main difference with bitcoin. The price is affected solely by demand and the number of bitcoins in circulation would be limited once all of it has been mined out.

I can't tell if it's safe to say that bitcoin is safe from inflation, since most of the time we value it in comparison to its fiat exchange, rather than by itself.

Amph

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the only inflation in bitcoin is related to the supply which keep increase up to 2140, but from 2030 you can already avoid counting that

other than that bitcoin incentivate hoarding which make deflation possible, and inflation not so much, which is the reason why the value is increased

but excessive hoarding is not good either, because people will use less and less bitcoin, waiting for a better value

SvenBomvolen

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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.

iamTom123

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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.

Topic: Bitcoin and Inflation - page 4. (Read 1184 times)