Topic: Bitcoin Deflation and Its' problems (Read 498 times)
True, i think that Bitcoin along with other Crypto currencies could be considered new money and traditional economic understanding about this could not be applied the same way. But since we don't understand it yet, we couldn't use it to it's full potential. Therefore we could look forward to things we could do woth crypto currency and blockchains.
I think another option is always way better than having no choice at all. Besides, taking away the volatility of crypto currencies, crypto currencies are actually way better than fiat all the sense. Besides the transparency of blockchain technologies it is also instantaneous and secured (unless you lose your own access).
Because BTC is one of the main and most valued currencies of the moment. It helps people to have a better and happier life. I think it should not be too worrying because the BTC is self-governing, unregulated by the government. It will increase or decrease depending on the belief that people in the world have for it.
I believe bitcoin deflation is normal because it is decentralized.Meaning,it's not controlled by government.People should not worry about bitcoin deflation because, surely there will also be an inflation.
Being a deflationary currency means that more people will tend to hold it since its value increases over time--hindering its capabilities of becoming an actual currency. This actually focuses less in its aspect as a currency since a currency that is not circulated well is not a good one. Deflationary currencies discourage spending. This is no secret but Bitcoin will act as the store of value similar to gold. Then we will use other cryptocurrencies for daily transactions that have lower fees and are faster.
indeed, bitcoin is now more useful for investment means. but indeed the main goal is to transact. As time goes by, I think it will happen later, that BTC will be used throughout the world
Deflationary currencies discourage spending. This is no secret but Bitcoin will act as the store of value similar to gold. Then we will use other cryptocurrencies for daily transactions that have lower fees and are faster.
I think it has happened before and even tho the situation is not exactly the same it is still an amazing thing that we are going thru same things over and over again and still get surprised every time it happens.
Bitcoin sometimes just drops in price and stays there for a long time, look at bitcoin prices when mt.gox happened even tho it seemed like it was early days it was still quite late stage with coinbase and cryptsy giving people trading options so it was still not like it was 2009 when it happened. Also when we reached 1.400 dollars or so it dropped to 250 and stayed there for years. Do not be worried, in the end it goes back up, stronger than ever.
Bitcoin sometimes just drops in price and stays there for a long time, look at bitcoin prices when mt.gox happened even tho it seemed like it was early days it was still quite late stage with coinbase and cryptsy giving people trading options so it was still not like it was 2009 when it happened. Also when we reached 1.400 dollars or so it dropped to 250 and stayed there for years. Do not be worried, in the end it goes back up, stronger than ever.
I like the blogs published by Bitmex. One of the awesome sources to gather knowledge around cryptocurrency.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
Quote
However, even if Bitcoin has solved this economic problem, perhaps it’s naive to think Bitcoin would result in a more prosperous economic system. Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones. After all there is no perfect money. It just may not be correct to apply the traditional economic problems of the past, to this new type of money. Although it may be more difficult, identifying Bitcoin’s potential economic problems may require more analysis and a stronger understanding of the underlying technology.
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
what really scares most of us is the unknown, in business, every move is feasible, it is true that bitcoin is new and a unique system, that makes it more dangerous for some newbies, the qoute is true and legit in way how it describe bitcoin, but it doesn't make bitcoin less of a machinery to improve the financial status of our economy. this quote is only a sort of an advisory for those interested investors to be cautious in jumping into crypto world.
People right now tend to focus so much on holding due to the deflationary asset nature of bitcoin and then forgetting what the currency aspect is like. However, it is what it is and only time can really tell how this whole thing will eventually turns out.
I like the blogs published by Bitmex. One of the awesome sources to gather knowledge around cryptocurrency.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
Whenever you ask people why they need cryptocurrency they say it’s because of debt and that’ usually sounds stupid to me they just forget that everything that has an advantage also has a disadvantage. Cryptocurrencies itself has its own disadvantage and might even be worst than our current monetary system. In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
Quote
However, even if Bitcoin has solved this economic problem, perhaps it’s naive to think Bitcoin would result in a more prosperous economic system. Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones. After all there is no perfect money. It just may not be correct to apply the traditional economic problems of the past, to this new type of money. Although it may be more difficult, identifying Bitcoin’s potential economic problems may require more analysis and a stronger understanding of the underlying technology.
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
So I’m not in support of having cryptocurrency as a replacement, I’m okay with what we have now cause the devil you know is better than the angel you don’t know.
every next step in development will face new challenges, this is the basis of philosophy. in the case of cryptocurrencies, this root lies in the trust between people, because transactions can not be withdrawn
Bitcoin has decreased seriously and it has been major problem that most investors face this time around which makes most lose interest
I like the blogs published by Bitmex. One of the awesome sources to gather knowledge around cryptocurrency.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
Quote
However, even if Bitcoin has solved this economic problem, perhaps it’s naive to think Bitcoin would result in a more prosperous economic system. Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones. After all there is no perfect money. It just may not be correct to apply the traditional economic problems of the past, to this new type of money. Although it may be more difficult, identifying Bitcoin’s potential economic problems may require more analysis and a stronger understanding of the underlying technology.
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
what really scares most of us is the unknown, in business, every move is feasible, it is true that bitcoin is new and a unique system, that makes it more dangerous for some newbies, the qoute is true and legit in way how it describe bitcoin, but it doesn't make bitcoin less of a machinery to improve the financial status of our economy. this quote is only a sort of an advisory for those interested investors to be cautious in jumping into crypto world.
I like the blogs published by Bitmex. One of the awesome sources to gather knowledge around cryptocurrency.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
Whenever you ask people why they need cryptocurrency they say it’s because of debt and that’ usually sounds stupid to me they just forget that everything that has an advantage also has a disadvantage. Cryptocurrencies itself has its own disadvantage and might even be worst than our current monetary system. In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
Quote
However, even if Bitcoin has solved this economic problem, perhaps it’s naive to think Bitcoin would result in a more prosperous economic system. Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones. After all there is no perfect money. It just may not be correct to apply the traditional economic problems of the past, to this new type of money. Although it may be more difficult, identifying Bitcoin’s potential economic problems may require more analysis and a stronger understanding of the underlying technology.
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
So I’m not in support of having cryptocurrency as a replacement, I’m okay with what we have now cause the devil you know is better than the angel you don’t know.
I believe bitcoin deflation is normal because it is decentralized.Meaning,it's not controlled by government.People should not worry about bitcoin deflation because, surely there will also be an inflation.
Being a deflationary currency means that more people will tend to hold it since its value increases over time--hindering its capabilities of becoming an actual currency. This actually focuses less in its aspect as a currency since a currency that is not circulated well is not a good one. I believe bitcoin deflation is normal because it is decentralized.Meaning,it's not controlled by government.People should not worry about bitcoin deflation because, surely there will also be an inflation.
Being a deflationary currency means that more people will tend to hold it since its value increases over time--hindering its capabilities of becoming an actual currency. A currency that is not circulated well is not a good currency. 
I like the blogs published by Bitmex. One of the awesome sources to gather knowledge around cryptocurrency.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
Quote
However, even if Bitcoin has solved this economic problem, perhaps it’s naive to think Bitcoin would result in a more prosperous economic system. Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones. After all there is no perfect money. It just may not be correct to apply the traditional economic problems of the past, to this new type of money. Although it may be more difficult, identifying Bitcoin’s potential economic problems may require more analysis and a stronger understanding of the underlying technology.
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
If mass adoption come, i am believe bitcoin value always increasing because more people need bitcoin to store their asset. Indeed bitcoin is new monetary system but central banks must be wont lose control on money supply
I believe bitcoin deflation is normal because it is decentralized.Meaning,it's not controlled by government.People should not worry about bitcoin deflation because, surely there will also be an inflation.
I like the blogs published by Bitmex. One of the awesome sources to gather knowledge around cryptocurrency.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
In this blog they discuss problem and benefits of deflationary economics. https://blog.bitmex.com/bitcoin-economics-part-3/
To quote from this:
Quote
However, even if Bitcoin has solved this economic problem, perhaps it’s naive to think Bitcoin would result in a more prosperous economic system. Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones. After all there is no perfect money. It just may not be correct to apply the traditional economic problems of the past, to this new type of money. Although it may be more difficult, identifying Bitcoin’s potential economic problems may require more analysis and a stronger understanding of the underlying technology.
I agree that it's a new kind of monetary system and it would have it's own problem when it becomes well adapted. but economically speaking do we need this system adding to the complexity already existing financial system.
If mass adoption come, i am believe bitcoin value always increasing because more people need bitcoin to store their asset. Indeed bitcoin is new monetary system but central banks must be wont lose control on money supply
The economic system will continue to grow and create many problems and anomalies, if later bitcoin can provide more benefits than fiat it can certainly be adopted to solve the problem at that time, the most important thing is the discovery of new solutions to current problems, even though the problem will continue to exist global economy
The value of Bitcoin will only increase until it plateaus and the last Bitcoin is mined (issued). It might jerk up and down but it’s the oldest cryptocurrency and we’re seeing it stabilize today, right before our very eyes.
Even after the last bitcoin is mined, it would still not stop the value to keep increasing if there is still a huge demand for it and though there is no need trying to assume what a whole lot of years from now will be like when virtually most of us here would have been long gone by then and who knows bitcoin could actually have reached a state of equilibrium. One thing with bitcoin is the fact that it has limited supply and that makes it deflationary and whatever future holds, the future will tell eventually. Jump to: