Topic: [CHART] Bitcoin Inflation vs. Time - page 47. (Read 1080103 times)

Fiat Bitcoin?  Never heard of the stuff.

Regardless, that's an interesting opinion you have there.  I believe I've heard it thrown around here a few hundred times before. I doubt you are going to the one who finally convinces all the "disbelievers" that they should subscribe to your opinion. I guess time will tell if you're right, until then you'll probably find a lot of resistance to your opinion around here.

The commonly accepted use of the term "inflation", describes "price/cost inflation". In 1910 a Ford car cost $500, today it costs $16,000.

A dollar cost or bought you around a day of common-labour ($9 week) and a decent rent cost $!5 a month.

The global marketplaces do not function within the value of Bitcoins, the Bitcoin-resources function within the values of them.

You might want to brag that it's a "Fiat Bitcoin Deflation" chart, but Fiat Bitcoin (such as it is arbitrarily and capriciously valued or devalued hourly, by "penny stock' market-like fiat-valuations)  is not and never ever can or will be stably valued as nor usable as a "Medium of Labour-Exchange" Currency, against which general, commonly accepted "price inflations" (necessary due to economic growth within a monetized economy) can be rationalized.

If "fiat" Bitcoin was in any manner a "hard" (backed) Medium of Labour-Exchange "currency" it's valuations would be consistent with the massively ever-inflationary "Mediums of Savings" values of "rare" gems, fine art, antiques or third-rate "finites" like gold, silver,metals oil etc  which by virtue of their finite limited intrinsic values, would continue to cause price-inflation due to the ever-expansive "supply growth" demands of all labour resources priced within their ever more limited-supply straightjackets.

This antique form of gold-money slavery is known as Mercantile Tyranny which still stubbornly forms the (now clearly bankrupted) old-underlying and now criminal-counterfeiting basis of the Tory-Bilderberg Trotskyite-Bankstering Western-Globalist Communist "NWO" tyranny of today.

The classical-economics birth of  a flexibly expanding, publicly profitable, publicly owned "endogenous money" (very much ideally like Fiat cooperatively owned, valued and exchanged Bitcoins) solves all of those ancient problems.

Adam Smith noted at the core of the mercantile system was the "popular folly of confusing wealth with money,"

It's simple arithmetic, a foolishly stupid "hard currency" tyranny penalizes you for having children and penalizes everybody for any and all added economic growth that the added-fruits of all of their added-labours produce. It also penalizes your two children for every third or more of their added brothers or sisters who will also need some money to put in their pockets for all of the added fruits of their added labours. It dooms the global marketplace to an eternal tyranny of ever-diminishing returns and eventual certain slavery to fiat loans from domineering monopolist tyrants.

It is therefore, in spite of any and all of it's other faults, that "fiat" Bitcoin is a plentiful and valuably-versatile "credit-derivative pass through" that allows us to store, own and use our own Medium of Value-Swap "money" without involving endlessly un-repayable debts to a tyrants.

That depends on if you're talking about price inflation (in which case what we are experiencing is "deflation" not "inflation") or supply inflation (in which case the charts presented are a "real" Bitcoin inflation chart.

These graphs are totally meaningless, and colossally misleading.\

2 1/2 years ago a Bitcoin would cost you one $5 Happy Meal (0.3448% of an oz. of gold).

Thus far, today, a Bitcoin cost you either 24.8 of your Happy Meals (= $128) or 33 of your Happy Meals (= $165).

That's roughly $140, 28 Happy Meals or 9.6551% of an oz. of gold!

Therefore a Bitcoin's labour-exchange value (price/cost) has inflated to somewhere between 24.8X (2560% of) or 33X (3300% of) it's original labour-exchange-value (price/cost), depending what (rather-fortunate or very-unfortunate) point at which you needed to exchange some of your "hard-earned" Happy Meals or gold for one.

Go to http://bitcoin.clarkmoody.com/

Hit "W1"

There's your real, actual Bitcoin "inflation" chart.

The "exchange-value" (price) inflation and deflation of Fiat Bitcoins has squat to do with any "monetary supply" of them and (foreseeably) never, ever will!

Market speculators and their fiat-antics capriciously determine the latest (stale) fiat exchange-value of the last fiat Bitcoin that past their way.

The actual "price" of any given Bitcoin remains forever unknown and unknowable until after it has been re-sold (re-exchange valued) to the next guy, in the future.

A Bitcoin functions exactly in much the same way as a "funded" Credit Default Swap (fCDS). You fund it's former owner's "loss" (costs) on it, and the next owner funds yours.

A Bitcoin is a commercial "over the counter (OTC) derivative" of the current-past value and future possible values of itself and it's network, which are only (at best) completely deregulated commercial resources, and neither "commodity futures" nor "securities" as per the CFMA of 2000. This is why, with it's "market" exchange-value changing every two seconds, it is useless as a "money" because you need an hour to accept and/or spend it. It's exchange-values are really only very useful as a delayed-exchange "funding" medium.

The intrinsic and utility values of the "futures derivative swap-contract token" no matter how attractive or quantitatively prearranged, are materially too small to be any more than a very, very minor factor in it's (inflationary or deflationary) exchange-value (aka price)

Buying a Bitcoin futures derivative swap-contract token is simply gambling that the value of it's current exchange-value will be close to or less than the value of it's future exchange-value.

The commonly accepted use of the term "inflation", describes "price/cost inflation". In 1910 a Ford car cost $500, today it costs $16,000.

The global marketplaces do not function within the values of Bitcoins, the Bitcoin-resources function within the values of them.

Thanks for posting these interesting graphs.

http://www.economist.com/blogs/freeexchange/2013/04/exchange-rates?fsrc=scn/tw_ec/inside_the_bitcoin_economy

Macro-economic factors

Thanks!

I think, we'll have a combination of delfation and inflation, maybe hyper stagflation.  The price for things we need to live, food & energy, will be expensive, in terms of purchasing power.   Yet, housing, TVs, and cars will be inexpensive, in relative terms.

Great charts!!! 

The chart looks nice but something a lot of people always forget is the lost bitcoins, the true monetary base may only be 20-50% of the calculated monetary base.

The chart shows instantaneous annualized inflation.

Annualized inflation of the monetary base (MB) is calculated as follows, where T is a time period in years:


If T=1, then the equation calculates the proportional increase in the money supply since one year ago, which is probably how you're thinking of inflation. If you calculate the limit of the equation as T approaches zero, then you get the instantaneous annualized inflation, which is what is shown in the chart.

There is a little difference though. Fiat currencies are continuously devalued, while bitcoin increases in value.

One could say that bitcoin inflation is too low right now. But even this was intended. The currency's price rise attracts buyers early on, increasing its popularity. This seems to work exceedingly well, except that it creates a sequence of speculative bubbles like the current one. You can't have everything.

2whitslack
I do not understand how You expected inflation in the first year of the currency?

inflation = current(monetary base) / 1_year_ago(monetary_base, right?



No matter what the reasons were for this launch.
But the fact is - the current bitkoin, this hyper-inflation currency (more than 30% per year up to 2013, 10% now - it's very much in comparison to fiat currencies).
And whether inflationary bitkoin successfully transformed into a deflationary, or die in the process - a topic for much discussion.


Sorry for my English, translated by Google translate.

I agree 100%.  I only pointed it out because whitslack took the time to scold someone else as if he were an expert on the matter and the other member was somehow uneducated. I'm more than willing to delete my posts regarding this if I see that whitslack has removed his insulting and demeaning reply to a well meaning member of the forum.

The words are not that sharply defined.

Not worth discussing here. Whatever you call it, it is useful and interesting.

But there are certainly other forums somewhere in the Internet where a discussion on the precise semantics of such words are perfectly on-topic.

I disagree.

Merriam Webster disagrees as well:


What you have provided is clearly a diagram as a series of line segments that represents the variation of a variable (bitcoin currency) in comparison with that of one more variable (time).

To make this chart, I made a spreadsheet of the money supply and annualized rate of inflation in every week and then turned them into a chart. The only small trick I had to do was to duplicate the rows at the transition points so that the steps on the chart would be vertical.

Hi,

This graph is very useful. I would like to make similar graphs to explain how changing parameters in bitcoin would effect the bitcoin economy. Could you explain how you made that?


Thanks,
Jacob

Nice looks good to me.

The actual number of bitcoins in existence at this moment is 10.935 million. The theoretical number of bitcoins that would exist now, if the blocks found to date had been found at an average interval of one every 10 minutes, would be 10.789 million. The actual number is slightly higher because we've been finding blocks faster than one every 10 minutes. Note that there will still only ever be 21 million bitcoins created; we'll just finish generating the currency a little bit ahead of schedule.