Bitcoin and Inflation | Bitcointalksearch.org

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Quote from: gantez on March 21, 2019, 10:32:58 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, 01:39:58 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.

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Quote from: LUCKMCFLY on March 22, 2019, 11:52:15 AM

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.

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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.

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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, 10:07:20 PM

Quote from: karloscimot on March 21, 2019, 07:44:40 PM

Quote from: SvenBomvolen on June 23, 2017, 04:34:05 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, 07:44:40 PM

Quote from: SvenBomvolen on June 23, 2017, 04:34:05 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, 04:34:05 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.

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Quote from: andriarto on March 10, 2019, 11:29:11 AM

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.

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Quote from: Greed Dev on March 15, 2019, 09:02:38 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, 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 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.

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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 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.

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

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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, 11:08:09 AM

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, 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

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.

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Quote from: vixcious on March 05, 2019, 08:24:12 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, 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.

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, 05:26:30 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.

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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.

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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.

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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 .

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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

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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.

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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%.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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 .

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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.

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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.

Ziskinberg

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Activity: 3010

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Bitcoin is not practically a solution to inflation because price is not stable and it does not always rise.
Well, inflation is a bad thing because the value of your money is consistently going down and some are just really taking risk to put their money in bitcoin hoping it will save them, but it does not happen automatically especially nowadays that we are still experiencing big correction.

juperos

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Activity: 459

Merit: 10

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 think we should not play risks. Because when you buy BTC or other altcoins, it is still affected by the external financial market and its price still falls. I think it will not help us keep the value of our money.
Instead of investing in electronic money, let's invest in gold or real estate. these are assets that keep your money's value and even increase every year.

huhhuh18

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Activity: 250

Merit: 2

I think Bitcoin may be categorised under something that can experience inflation only when it's being accepted to be used as an official currency. But currently, it isn't an official currency and so the community decides what one BTC costs and if you need to buy something with it, it's just converted to the native official currency.

ufaiz50

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Activity: 1666

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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.

First you say Nobody is immune from the power of inflation, and I consider it right. In my opinion Cryopto will push inflation to the highest level because there is no one party control on supply and demand, we know the cause of inflation and in this case all users who hold crypto can make inflation happen, which is where users is come from all over the world.

Barbut

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★Bitvest.io★ Play Plinko or Invest!

Quote from: millionaireshs on December 30, 2018, 12:09:07 AM

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.

That's is the real strategy of manufacturer when the inflation are affected to all commodity they are not go with it. they would really stay the normal and a usual equivalent but they will adjust the little quantity and of course not too much far the quality to prevent less orders. for Bitcoin inflation is because of limited stocks. many people are holdings and set aside for future investment.

What is inflation in reality? Before with one dollar you could more things, now with one dollar you can`t buy one bubble gum. Bitcoin have limited amount of bitcoins in circulations, can that be changed? Discussion is only about that, if maximum number of bitcoins stays the same there cant be inflation. Now you can read who and how bitcoin can be changed, who needs to agree about it, and about entire process how changes can be made on the bitcoin network. In same time you will learn what is decentralization.

millionaireshs

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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.

That's is the real strategy of manufacturer when the inflation are affected to all commodity they are not go with it. they would really stay the normal and a usual equivalent but they will adjust the little quantity and of course not too much far the quality to prevent less orders. for Bitcoin inflation is because of limited stocks. many people are holdings and set aside for future investment.

Bitfling

member

Activity: 602

Merit: 10

I think inflation happen because central banks always flooding market with new supply of money. Bitcoin have limited supply and its hard for creating inflation from it. Central banks flooding money in market because government want growth on their economic and its a normal as its maintained well

horrifiedx1

member

Activity: 602

Merit: 11

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

I believe bitcoin can be a good way to control the inflation but still it is not always has a good luck for everyone. The only group of people that has an advantage on the greater side of bitcoin are those who are capable to hold the price and those who are early adopters.

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.

most people experience panic when there is a bearish attack, so this even worsens the condition, because it will cause prices to continue to decline. To maintain BTC is not easy, because many factors influence, especially news that is a scourge for them. therefore self-confidence becomes very important

jeromix

copper member

Activity: 266

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Ako Bayot!

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.

so meaning that cryptocurrency is not being controlled. Well I will not agree because market has drop due to the correction process but I do not really see if it is really a correction or just founders being greedy. They are not held liable for now for any crashes because cryptocurrency is not yet regulated through governments all over the world.

Guryon_master

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Student Coin

I believe bitcoin can be a good way to control the inflation but still it is not always has a good luck for everyone. The only group of people that has an advantage on the greater side of bitcoin are those who are capable to hold the price and those who are early adopters.

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.

Naida_BR

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Activity: 980

Merit: 62

Quote from: wuvdoll on December 29, 2018, 11:19:46 AM

Inflation only affects the fiat currency we use daily most of the time. It doesn't really affect things like gold for example and Bitcoin has been a commodity like gold for a while now so we can clearly say that inflation does affect bitcoin but in a positive manner. So, if 1000 dollars today worth 1500 dollars in 10 years for purchasing power that means 4000 dollar worth of bitcoin would worth 6000 dollars in dollars because of the dollar devaluing.

Since, dollar drops in value the bitcoin price goes up accordingly, inflation is not something bitcoin is immune to, it does have a part in bitcoin world but thankfully it is in a good way. We could consider how the gold prices increase over the years as a similar path for bitcoin, of course not exactly the same because they are vastly different stuff but for the purposes of inflation they are effect exactly the same.

Inflation doesn't affect Bitcoin directly but it DOES indirectly.

As there is still a trading pair of BTC/USD this affection is inevitable. I have seen that when a currency is inflated then people turn to the cryptocurrency market and they buy BTC. (remember what happened in Turkey, summer 2018). Bitcoin is not inflated but as long as Fiat is inflated then Crypto markets behave accordingly every time inflationary trends appear.

wuvdoll

legendary

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Inflation only affects the fiat currency we use daily most of the time. It doesn't really affect things like gold for example and Bitcoin has been a commodity like gold for a while now so we can clearly say that inflation does affect bitcoin but in a positive manner. So, if 1000 dollars today worth 1500 dollars in 10 years for purchasing power that means 4000 dollar worth of bitcoin would worth 6000 dollars in dollars because of the dollar devaluing.

Since, dollar drops in value the bitcoin price goes up accordingly, inflation is not something bitcoin is immune to, it does have a part in bitcoin world but thankfully it is in a good way. We could consider how the gold prices increase over the years as a similar path for bitcoin, of course not exactly the same because they are vastly different stuff but for the purposes of inflation they are effect exactly the same.

Wellyan

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Quote from: RockHenki on November 09, 2018, 09:45:14 AM

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.

inflation cannot be controlled by everyone because inflation is already a decision or a change that occurs in money. both our country's and other country's money. so if other countries experience inflation, it is likely that our country will also experience it.

Rhosadah

copper member

Activity: 383

Merit: 100

whether the effects of mining in China on bitcoin inflation continue to run, this will make a long journey in some time and it is possible that the crypto community will remain focused on their efforts in building crypto projects that are real useful for the products they sell on the blockchain mechanism.

Coin-1

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Activity: 2618

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Quote from: Amph on June 23, 2017, 05:18:57 AM

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

Most of the new mined BTC coins is likely to be in the hands of Chinese mining pools. They have a lot of ASICs and add the majority of blocks to the Bitcoin blockchain.

About 16 million BTC coins have already been mined. Another 5 million BTC coins will be mined in the future. A small circle of rich people probably will concentrate a large amount of coins in their Bitcoin-addresses, so this situation may lead to price manipulation on crypto exchange markets.

In my opinion, Bitcoin inflation is still high. The miners receive 12.5 BTC for each mined block.

yusupjatigumilar

full member

Activity: 644

Merit: 100

isn't it if bitcoin experiences inflation that is a good thing? it can benefit many investors, isn't inflation in bitcoin the thing that is expected by investors, and if you look at the total supply and halving system then bitcoin will continue to experience inflation because the number of requests will exceed the bitcoin inventory limit, bitcoin is different from other commodities when experiencing inflation in bitcoin enthusiasts continues to grow

chairmanMao

member

Activity: 456

Merit: 15

Bitcoin has not swelled. This is an independent coin. Only traditional coins will swell. Bitcoin will be scarce in the future and its price will become more and more expensive. Inflation may only belong to traditional currencies because traditional currencies are abused by politicians.

BitHodler

legendary

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Quote from: Febo on November 09, 2018, 11:28:24 AM

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.

Technically speaking, coins aren't really lost so it doesn't make much sense to discard them. Coins are lost because people don't see them move, but they can at any later point, and it actually happens frequently.

In 2017 we have seen very old wallets that were claimed to consist of lost coins suddenly have started to show signs of life again, and it happens even till where we are today with the bear market.

I have seen discussions where people wonder why some of these coins haven't been moving during the all time high last year, but are being utilized right now. It could have 1001 different reasons why these wallets are active now.

I don't even consider Satoshi's coins to be lost. They aren't moving, but there may still be someone or a group holding the private keys of the individual 50BTC block reward addresses.

sadirmrida

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Activity: 644

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Alreary bitcoin rising up. As soon btc his highest value like as $20000. Beginning the next year btc pump. So it effect inflation and deflation. last 6 month bitcoin price going down. Many agency says that now they saw green line for btc.

dreamax25

full member

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Inflation and how Cryptocurrencies approached it:

https://coincodex.com/article/2770/how-cryptocurrencies-approach-inflation/

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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Activity: 238

Merit: 10

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

hero member

Activity: 1120

Merit: 554

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

member

Activity: 281

Merit: 10

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

legendary

Activity: 1610

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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

hero member

Activity: 1274

Merit: 622

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.

maokoto

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✪ NEXCHANGE | BTC, LTC, ETH & DOGE ✪

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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CryptoTalk.Org - Get Paid for every Post!

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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Campaign Management?"Hhampuz" is the Man

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

legendary

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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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Activity: 588

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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

hero member

Activity: 490

Merit: 501

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 (Read 1189 times)