Bitcoin's market position inflation corrected - page 2.

Adbitco

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Quote from: Upgrade00 on June 11, 2023, 04:51:21 AM

Quote from: Bialke on June 10, 2023, 10:25:11 PM

1. Bitcoin is FIAT-bounded, and through exchange rates, has a worse inflation rate as FIAT.

Your assumption makes little sense to me, first being paired to fiat does not make Bitcoin "fiat bound". What does fiat bound even mean?
And Bitcoin did not suffer inflation at all to have had a worse inflation that fiat currencies, it's a deflationary asset.

Partially i sensed it to be without fiat one would not be able to purchase bitcoin at the first place, being that for a trade to occur you must first make a deposit of fiat then possibly convert or trade to usdt before buying bitcoin. This is what i senses by op saying fiat bound, actually when dealing with bitcoin and fiat they both has interrelationship whereby to spend your bitcoin need a fiat and maybe, might be the same to stores that accepts bitcoin but in real life we must need to sell to fiat before finally spending it. However, Op should try to making his post a bit comprehensible for better interaction.

Darker45

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I don't quite understand your point. How is Bitcoin worse than fiat in terms of inflation rate, or the effects thereof?

In 2011, what can you buy with 1 dollar? Fast forward to 2023, can you say that you will have to pay $10 in order to buy that same thing? Probably not? But supposing the prices have multiplied 10 times, Bitcoin's growth not only kept up, it greatly surpassed the rate of inflation. If from 2011 to 2023 the prices of goods rose to as high as x10, the price of Bitcoin grew more than x1000. How, then, can Bitcoin be worse than fiat when while fiat's purchasing power weakened Bitcoin's increased?

As far as "chain-inflation" is concerned, Bitcoin forks aren't Bitcoin.

Upgrade00

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Quote from: Bialke on June 10, 2023, 10:25:11 PM

1. Bitcoin is FIAT-bounded, and through exchange rates, has a worse inflation rate as FIAT.

Your assumption makes little sense to me, first being paired to fiat does not make Bitcoin "fiat bound". What does fiat bound even mean?
And Bitcoin did not suffer inflation at all to have had a worse inflation that fiat currencies, it's a deflationary asset.

Quote from: Bialke on June 10, 2023, 10:25:11 PM

2. Nearly every aggregator and exchange which is showing Bitcoin rates not indlation corrected is scamming! (To pump FIAT in the market.)

This makes no sense again. Your banks are also supposed to show you the value in your account adjusted for inflation, no?

Don Pedro Dinero

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Quote from: d5000 on June 10, 2023, 10:45:47 PM

I may not understand properly what you mean here, but isn't it the other way around?

You get it right, it's the other way round.

Quote from: ImThour on June 10, 2023, 11:00:20 PM

Why are we even comparing 11th June, 2023 Bitcoin price with 2011 price? What Inflation corrected in market for Bitcoin? I am not even drunk mate.

Still your thread is way above my level of understanding.

Actually, what he says is not wrong, but it is partly true and partly not.

Quote from: mk4 on June 10, 2023, 11:26:39 PM

Can you explain further your 30-40% thing? Cant see how you ended up with that number.

Cumulative inflation, as calculated by him.

Quote from: mk4 on June 10, 2023, 11:26:39 PM

1. FIAT is just the trading pair. That's how markets work — you pair the asset with the most used asset for trading, which is fiat.

Yes, but what he says is not wrong. It's like me telling you that I bought a house for $500,000 and sold it after 10 years for $550,000. On the face of it I have made a profit but if cumulative inflation over that period is 30% I have lost money in real terms, not to mention that I have to pay capital gains tax on a profit that if we discount inflation I have not made.

What the OP is doing is deflating, I think it is called, the price of bitcoin measured in fiat, which is not bad but he is wrong when he says that bitcoin is inflationary, as the accumulated profitability beats inflation by far.

mk4

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Can you explain further your 30-40% thing? Cant see how you ended up with that number.

1. FIAT is just the trading pair. That's how markets work — you pair the asset with the most used asset for trading, which is fiat.

2. ? ? ?

"Chain-inflation": I can create my own version of the USD, but it wouldn't do crap with the economics of the USD. Same with with the bitcoin-forks.

ImThour

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I fail to understand your logic behind this calculation or I am too stupid to understand it. I would like you to explain me this like I am a five.
Why are we even comparing 11th June, 2023 Bitcoin price with 2011 price? What Inflation corrected in market for Bitcoin? I am not even drunk mate.

Still your thread is way above my level of understanding.

d5000

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Quote from: Bialke on June 10, 2023, 10:25:11 PM

1. Bitcoin is FIAT-bounded, and through exchange rates, has a worse inflation rate as FIAT.

I may not understand properly what you mean here, but isn't it the other way around?

Even if your 30-40% "inflation adjustment" is true (I believe it is closer to 25% since 2013, because there were long stretches of very low inflation rate, only in the last 2 years it accelerated), you get an inflation (=deflation) rate of -96% for the last 10 years (taking for 2013: a price of $500, and for 2023, a price of $15000), which (estimated without calculating it) is about -15% per year.

If you have a good valued $100000, then in 2013 its price in BTC was BTC200, in 2023 its BTC6,70.

At this moment, Bitcoin is deflationary. This may change, but we're still not there.

Quote from: Bialke on June 10, 2023, 10:25:11 PM

What is about the "chain-inflation"? First Bitcoin has 21 million, first fork has 21 million, and so on - and all this Bitcoin eating from the same bowl...

Yeah, but the main chain Bitcoin is still $15000 (in 2013 prices) or $25000 (in 2023 prices) worth, because you must add the market cap/price of the fork chains, not subtract it. The fork coins aren't fungible with the mainchain BTC. Or would you pay $10000 or more for a BSV?

If I'm completely misunderstanding, please elaborate

(sorta interesting topic, by the way).

Bialke

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On February 9th, 2011 Bitcoin had a market position (price) of 1 USD.

Now, on June, 11th, 2023, the market position of Bitcoin is ~25,000 USD. But is this right? A lot of "money people" or "Bitcoin maximalists" are telling this story. But this is not true at all. Inflation corrected is around 30 to 40 percent of the ~25.000 USD. So it is basically a market position (in relation of the value of 2011) of ~12,000 USD.

This is also really good,

but it shows two things:

1. Bitcoin is FIAT-bounded, and through exchange rates, has a worse inflation rate as FIAT.

2. Nearly every aggregator and exchange which is showing Bitcoin rates not indlation corrected is scamming! (To pump FIAT in the market.)

Prove me wrong, I would love to be wrong! But I am not.

Edit:

And this is just the inflation related to Bitcoin-Fiat/good. What is about the "chain-inflation"? First Bitcoin has 21 million, first fork has 21 million, and so on - and all this Bitcoin eating from the same bowl...

Topic: Bitcoin's market position inflation corrected - page 2. (Read 270 times)