Bitcoin is still Inflationary! | Bitcointalksearch.org

kokojie

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Quote from: mvidetto on November 13, 2013, 09:43:49 PM

Quote from: User705 on November 13, 2013, 09:35:09 PM

It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day.

This is only necessary if the miners are selling the newly minted coins. Else, the amount of traded coins on the exchanges one would think remains stable.

History shows roughly about half of the mined coins are immediately sold on the exchanges. I would imagine the sold percentage only goes higher during a bubble.

reactive4ce

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Quote from: DeathAndTaxes on November 14, 2013, 12:51:46 PM

Quote from: davidgdg on November 14, 2013, 12:49:02 PM

An inflationary currency is simply one that has an increasing money stock. So, yes bitcoin is inflationary because additional bitcoins are being mined, but it has nothing to do with the price of BTC measured in fiat.

Well it does to some extent. If x new BTC are being added to the exchange each day (net BTC inflows) then y USD also needs to be added (net USD inflows) or the exchange rate will drop.

The higher the exchange rate goes the higher the y/x ratio must also go.

But when your daytrader, you may buy and sell the same bitcoins/USD many times during one day.

So the y/x ratio does not matter much in my opinion

DeathAndTaxes

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Quote from: davidgdg on November 14, 2013, 12:49:02 PM

An inflationary currency is simply one that has an increasing money stock. So, yes bitcoin is inflationary because additional bitcoins are being mined, but it has nothing to do with the price of BTC measured in fiat.

Well it does to some extent. If x new BTC are being added to the exchange each day (net BTC inflows) then y USD also needs to be added (net USD inflows) or the exchange rate will drop.

The higher the exchange rate goes the higher the y/x ratio must also go.

davidgdg

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An inflationary currency is simply one that has an increasing money stock. So, yes bitcoin is inflationary because additional bitcoins are being mined, but it has nothing to do with the price of BTC measured in fiat.

4mherewego

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(The number of dollars created per day) / (The number of bitcoins created per day) >> 400

Crazy

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Quote from: mvidetto on November 13, 2013, 09:43:49 PM

Quote from: User705 on November 13, 2013, 09:35:09 PM

It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day.

This is only necessary if the miners are selling the newly minted coins. Else, the amount of traded coins on the exchanges one would think remains stable.

This point was related to my other post you responded to. Also, miners need to pay their bills.

mvidetto

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Quote from: User705 on November 13, 2013, 09:35:09 PM

It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day.

This is only necessary if the miners are selling the newly minted coins. Else, the amount of traded coins on the exchanges one would think remains stable.

wobber

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I do think that the price is INFLATED

User705

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First 100% Liquid Stablecoin Backed by Gold

It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day.

Topic: Bitcoin is still Inflationary! (Read 1103 times)