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Topic: Bitcoin inflation (Read 180 times)

newbie
Activity: 15
Merit: 0
July 28, 2018, 04:54:22 AM
#11
It like impossible for bitcoin to inflate because of the blockchain technology behind it and the fact that it can not be falsified. In many aspects it's more valuable than gold and that says something. Bitcoin is stable and it's here to stay, i think forever.

As a general rule, inflation happens when new money is released. New Bitcoin is released everytime a block is mined, so Bitcoin absolutely suffers from inflation, as others have said. USD's 2017 inflation stands at around 2.1%, while Bitcoin's is at 3.9%, but Bitcoin's will be increasingly lowered every halving, and will eventually flip to deflation once all coins have been mined.

Either way, it's not much of a problem. People seem to be much more worried about the eventual deflation, which carries concerns towards its utility as a currency.

Yeah, i guess you're right. Still bitcoin won't go anywhere any time soon and will still be the biggest crypto i think.
newbie
Activity: 4
Merit: 0
July 28, 2018, 04:50:59 AM
#10
Inflation is a frequently mentioned term in the media today. If managed well, this is not necessarily a bad thing. The European Central Bank is one of the key players in managing inflation in the Eurozone, which is generally accepted when the inflation rate is close to 2%. If inflation starts to increase on this magic number then the ECB must impose credit restriction measures through interest rate management and pull back economic activity. On the other hand, if inflation is in danger of falling into negative territory, the ECB is worried that this may curb economic growth so they are forced to adopt a quantitative easing policy to increase the money supply. Quantitative easing includes lowering interest rates, loosening control measures, and increasing the volume of money this is one of the strengths of a nation. Each country has a unique ability to print its own money. Basically, Bitcoin is different from real money in this particular respect.
legendary
Activity: 4466
Merit: 3391
July 28, 2018, 03:43:34 AM
#9
Can bitcoin suffer inflation?

Yes. Currently the monetary inflation rate is about 4% because new bitcoins are constantly being created. As the number of bitcoins increases and the production rate goes to 0, the inflation rate due to bitcoin creation will go to 0.

However, if Bitcoin is widely adopted then Fractional Reserve Banking may become feasible and there may be another long period of inflation.
hero member
Activity: 1834
Merit: 759
July 28, 2018, 03:39:41 AM
#8
It like impossible for bitcoin to inflate because of the blockchain technology behind it and the fact that it can not be falsified. In many aspects it's more valuable than gold and that says something. Bitcoin is stable and it's here to stay, i think forever.

As a general rule, inflation happens when new money is released. New Bitcoin is released everytime a block is mined, so Bitcoin absolutely suffers from inflation, as others have said. USD's 2017 inflation stands at around 2.1%, while Bitcoin's is at 3.9%, but Bitcoin's will be increasingly lowered every halving, and will eventually flip to deflation once all coins have been mined.

Either way, it's not much of a problem. People seem to be much more worried about the eventual deflation, which carries concerns towards its utility as a currency.
newbie
Activity: 15
Merit: 0
July 28, 2018, 03:03:48 AM
#7
It like impossible for bitcoin to inflate because of the blockchain technology behind it and the fact that it can not be falsified. In many aspects it's more valuable than gold and that says something. Bitcoin is stable and it's here to stay, i think forever.
jr. member
Activity: 268
Merit: 1
July 27, 2018, 03:28:37 PM
#6
Can bitcoin suffer inflation?
Bitcoin is decentralized, so no one can reach your funds, freeze you account, cancel your payment, and so on. About Bitcoins you have, you can not come about only your own fault.
While the common currency is subject to inflation (money is released unlimited) Bitcoin is not. The exact amount (21 million) that may be in circulation is determined.
Bitcoin can not be falsified. Bitcoin does not require trust in central authority, if you have a classical bank account that gets into trouble and scratches, you can lose your money. That's not going to happen with Bitcoin.
jr. member
Activity: 70
Merit: 2
July 27, 2018, 09:02:45 AM
#5
Right now the inflation is kind of high compared to fiat money.  After the next halving the inflation will be much lower and most experts predict the prices to rise substantially after this event.
newbie
Activity: 68
Merit: 0
July 27, 2018, 08:27:35 AM
#4
Currently, there are almost 17 Million BTCs and mining / mining processes generate 12.5 new BTCs in almost every 10 minutes, thus totaling in 1 day there are 1,800, which means there is inflation around 4%, in some western countries they have inflation around 2%. This simple calculation proves that bitcoin has inflation.
newbie
Activity: 48
Merit: 0
July 27, 2018, 08:19:30 AM
#3
About 80% of the bitcoin resources have been extracted and the bitcoin extractor rewards will be halved over time if the current growth rate of bitcoin sales stays constant the price is likely to increase substantially.
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
July 27, 2018, 08:11:43 AM
#2
Till all the coins have been mined, yes there is inflation currently at 3.90%

After all the coins will be mined, there won't be any inflation, and we will also drop below 1% in the next decade.
newbie
Activity: 61
Merit: 0
July 27, 2018, 01:38:26 AM
#1
Can bitcoin suffer inflation?
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