Topic: Inflation and Deflation of Price and Money Supply - page 13. (Read 1280880 times)
I think that no matter how stable Bitcoin becomes it will never be used as the primary payment method around the world. Other stable currencies or govt backed cryptos will be used for such payments.
Bitcoin is an inherently deflationary currency. However, Keynesians would have you believe that a deflationary currency is bad because it forces people to horde and not spend their money. This propensity for people to generally horde a deflationary currency is good because it aligns the capital interests to appropriately be deployed to long term investments rather than consumption.
Once Bitcoin has appropriate lending markets it will help the economy drastically to allow for sound lending markets where lenders are getting appropriately compensated for long term lending. The gov't is constantly destroying the credit markets with low interest rates through the central banks to prop up toxic non producing industries like Real Estate. Once the Sovereign credit dries up, (which is currently happening in the US Bond markets) the governments will no longer be able to keep interest rates low.
This is where bitcoin will come in and replace these fiat currencies as sound money =)
Once Bitcoin has appropriate lending markets it will help the economy drastically to allow for sound lending markets where lenders are getting appropriately compensated for long term lending. The gov't is constantly destroying the credit markets with low interest rates through the central banks to prop up toxic non producing industries like Real Estate. Once the Sovereign credit dries up, (which is currently happening in the US Bond markets) the governments will no longer be able to keep interest rates low.
This is where bitcoin will come in and replace these fiat currencies as sound money =)
The dollar and the ruble are not backed by gold, inflation is high, so bitkoin has chances to become the best currency
To my mind, there will be a significant decline in the beginning of the year but it will get to its peak later, like 30K or so.
I feel like it will start to drop rather rapidly as people are trying to get their hands on more USD to compensate for their expenses. Then they would start to keep the BTC and the difficulty would rise so it would go back up?
Bitcoin is still too volatile to be the main form of payment at the moment, but that will change over time. As bitcoin becomes more and more distributed, the price will being to stablize. We are lucky to be living in a time when a change of paradigm is actually occurring. Bitcoin and cryptocurrencies will fundamentally change the way humans ineract for each other, and we are all contributing to what that will look like.
Bitcoin is money, it just has all the infrastructure ( Fraud checking and storage etc. ) already built in and only exists digitally, you just have a bunch of people who Bitcoin threatens denying everything and openly refusing to class it as money.
Bitcoin it's not money mate 
Bitcoin its asset digital, from my opinion no one still can replace money. But bitcoin can replace payment system like Visa, Transfer Bank, and others think. Well, it's my opinion what happens on future let's see. I think that we will slowly transition into an era where Crypto will take over fiat, maybe not now, neither in 30, but more like 50 years everything will be price tagged in crypto. Crypto just allows payments to be faster, easier, secure, etc...
Take this scenario as an example:
It's 2070 and you're grandchild is trying to buy his new virtual reality gaming kit produced by Tesla.
What do you think is a best suitable way to pay for it:
1) The fed has a "crypto dollar" backed by "trust" which they regulate.
2) BTC or other Crypto (decentralized) (given that transaction speed and costs are efficient by then).
It's obvious that a crypto decentralized option is by far the best option.
Yes you could estimate future cash flows of you had contracts or sales data.
For example I worked for a bakery that made 20K per month. Then I decided to model my business after theirs but in a different past of town that didn't have a good bakery. I could estimate that within a few years my business could possibly genstate similar income
Or if I snuck behind their backs and offered the same baguette to a distributor for 20% less and stole their contract
For example I worked for a bakery that made 20K per month. Then I decided to model my business after theirs but in a different past of town that didn't have a good bakery. I could estimate that within a few years my business could possibly genstate similar income
Or if I snuck behind their backs and offered the same baguette to a distributor for 20% less and stole their contract
Bitcoin is money, it just has all the infrastructure ( Fraud checking and storage etc. ) already built in and only exists digitally, you just have a bunch of people who Bitcoin threatens denying everything and openly refusing to class it as money.
Bitcoin it's not money mate Bitcoin its asset digital, from my opinion no one still can replace money. But bitcoin can replace payment system like Visa, Transfer Bank, and others think. Well, it's my opinion what happens on future let's see.
You all may be very interested in my new Federal Reserve of WIP coin, which is centralized and by fiat. There is a discussion thread in here as well. Smiley
Traders willing to BUY Bitcoin from SELLERS in exchange for other cu
At some point of time we will to the final stage of bitcoin's evoluation when we switch to another crypto curency which has better function and not so connected to the quantum technologies.
Inflation means increase in price while deflation is opposite of inflation.
Inflation simply means increase in prices while the deflation is decrease in prices.
Supposing that quantum computing has the ability to break crypto and the hash functions that are used in the blockchain.
Thanks for info. Excellent posting sir. Great job!
inflation simply means increase in price while deflation means opposite of the inflation that's decrease in price.
Inflation is an increase in the general level of prices, accompanied by a corresponding decrease in the purchasing power of money (depreciation of money) and leading to the redistribution of national income. Deflation is a reduction in the overall price level. Inflation is the main destabilizing factor of the market economy.
Inflation has a strong impact on economic agents, someone wins, someone loses, but most consider inflation to be a major problem.
Your rating is correct, I think so. The fact is that inflation is a big problem for the whole society at anytime, everywhere also have inflation. I hope soon to find a solution to curb inflation so that the market economy is stable. Inflation has a strong impact on economic agents, someone wins, someone loses, but most consider inflation to be a major problem.
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