Price inflation is not only derived from the market price of whatever it is you're exchanging a currency for, but it is also derived from the value of the currency 'itself', meaning the rate of monetary inflation along with supply and demand of that currency.
In other words, prices of good/services (price inflation/deflation) are reflective of the exchange rate due to FX trading and the Bitcoin generation rate due to mining (monetary inflation).
Topic: Inflation and Deflation of Price and Money Supply - page 13. (Read 1424325 times)
These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.
Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally. 
I guess it's more important not the quantity of money but its velocity. The same is relevant for crypto as well: if we may see crazy speed of number of transactions following the instant mode of these operations one may predict that cryptocurrencies may take over the world financial system. What do you think?
I think that new blockchains that we already have allows cryptocurrencies to replace existing financial giants such as Visa and Mastercard, but there is a problem with regulations and maintaining existing government system. At the moment we don't have a working framework which will allow us to build crypto-based economies and of course, there is the question about the richest people and governments, a lot of them don't want to implement cryptocurrencies for a bunch of reasons. But in the near future, I think there is a possibility that we will move forward to the crypto-based economies, especially in developing countries.
These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.
Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally. I guess it's more important not the quantity of money but its velocity. The same is relevant for crypto as well: if we may see crazy speed of number of transactions following the instant mode of these operations one may predict that cryptocurrencies may take over the world financial system. What do you think?
These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.
Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally.
These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.
Within the paradigm Quantity Theory of Money (QTM) framework, inflation is related to changes in the money supply, but this framework has been seriously challenged and cannot be taken at face value. If you plot a consumer price index for a particular country with the respective money aggregate over time, you’ll see that they are unrelated. However, QTM defenders say that the inflation is just delayed, for an unspecified period of time… empiricists are waiting for an inflationary response(or lack thereof) to expanding the money supply in 2008 in the US.
There is a handful of articles in the literature reviewing the instance of Quantitative Easing (QE) during the Great Recession and the apparent lack of impact on inflation, not supporting the QTM. Other frameworks attribute inflation to demand-pull and cost-push factors. All of this is good for further reading as it’s certainly a controversy in macroeconomics.
There is a handful of articles in the literature reviewing the instance of Quantitative Easing (QE) during the Great Recession and the apparent lack of impact on inflation, not supporting the QTM. Other frameworks attribute inflation to demand-pull and cost-push factors. All of this is good for further reading as it’s certainly a controversy in macroeconomics.
Why do a lot of people go for bitcoin when these, too, go under inflation and deflation of price and money supply?
What is the difference? I really don't get why people are crazy about bitcoin. Huh
What is the difference? I really don't get why people are crazy about bitcoin. Huh
Inflation is a continuous trend of increase in the general price level of goods and services prices in a given period..
In economies where inflation takes place, the buying power of money is falling.
Prices usually fall into deflation.
When inflation falls below zero, it becomes deflationary.
In economies where inflation takes place, the buying power of money is falling.
Prices usually fall into deflation.
When inflation falls below zero, it becomes deflationary.
I've said and what I needed to say. and I'm done. Root of our disagreement is not that you haven't repeated your claim often enough, I do not suspect that anything I write will cause you to think beyond repeating it yet again.
The worldwide economic situation, the oil price hike in the whole world, the distribution sufficiency of products and primary commodities, the peace order in the whole world, all of those are the common reasons of the inflation and deflation of prices and money supply in the market. That is why it is very important that each country could maintain peace and order in their own, good governance to the people, and maintain good relationships towards other countries to help the worldwide economy stable.
Economic activity is too much compared to the ability of the system to support it. Money has the peculiar property to be generally accepted. It would only mean that everyone has an equal opportunity to get their hands on that commodity, whereas at the moment this right is reserved for those who possess enough fiat currency, other people's debt.
I like how the others are very detailed on explaining the defiation and inflation and how it is relative to bitcoin. I have more to learn so these information really helps.
Hiệu ứng bitcoin làm mọi người phải biết đến nó và tôi 1 thợ mỏ nghiệp dư cũng bị cuốn vào như bao thợ mỏ khác.. tôi có rất ít kiến thức về bitcoin cũng như cái đồng điện tử khác nên việc theo dõi cái bài báo và phân tích của các bạn trên bitcointalk cho tôi rất nhiều kiến thức để tôi có thể làm tốt hơn. Tôi cảm ơn vì điều đó. Một lần nữa cảm ơn bài viết và chúc cho tất cả chúng ta đều tìm thấy cái mình muốn trong nền công nghệ 4.0 này
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.
Jump to: