Inflation and Deflation of Price and Money Supply - page 27.

quedex

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Quote from: thefiniteidea on February 02, 2013, 05:57:48 PM

Price-Deflation is what you are used to hearing about in Bitcoin. That term is used to describe the prices of goods/services as they decrease, because the value of Bitcoin goes up.

Price-Inflation is the opposite. When prices of goods/services increase because the value of Bitcoin goes down.

So, when dealing with Price-Inflation or Deflation, there is an inverse relationship of price and value, in regard to goods/services and Bitcoin.

Example: As the Bitcoin price goes from $10 to $20, the prices of goods/services goes down from 20BTC to 10BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10BTC to 20BTC!

This works only if treated as a loose analogy or "what would happen if the economy ran on Bitcoin only and everything else was unchanged".
In fact, Bitcoin does not have any meaningful price inflation (or price deflation) since there are no prices that are actually set in BTC. I've yet to see a price even remotely sticky in BTC, everything is indexed to USD or other fiat. Sure, you could measure how much goods you could buy for your coins, but there is no added information in that.

Sviatoslav Zvarych

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USD inflation was 1.9% last month.

It will close at FED target 2.5% this year. It means that if you have USD 100.00 under your mattress you now have $97.50 as dollar purchasing power.

BrendaGee

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The only way to really manipulate the price would be a mass adoption as a secondary currency. if we can keep pushing the adoption. With a set number of currency to be made, the only main issue to create price is velocity. since this velocity is so high and the inflation rate known. we could expect the price to jump again. the issue is more of a convinence thing.

tibne

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Another view is that cryptocurrencies increase the money supply and will cause inflation. So dollar will be softer. Then major crypto like Bitcoin will go up against dollar? Cheesy

thend1949

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Quote from: Sidiq SP on October 28, 2017, 08:20:05 AM

I think inflation is a continuously rising price trend and deflation is the other way around, the link between price and offer with inflation and deflation is vital, inseparable, in the event of jnflation and deflation it will trigger price volatility and supply, so the more we struggling with all this will surely understand that all are connected to one another

Yes that's how bitcoin behaves in a matter of time, also with other cypto currencies in the crypto market as inflation continues to rise. That's why price volatility happens always specially when many people selling their assets, particularly that bitcoin holdings they had. If demand also will increase then we can see the price surges and supply became smaller that's why the price will be getting so expensive. That would be a good time to gain proper understanding behind all of this situations that we had is more like a domino effect.

Sidiq SP

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I think inflation is a continuously rising price trend and deflation is the other way around, the link between price and offer with inflation and deflation is vital, inseparable, in the event of jnflation and deflation it will trigger price volatility and supply, so the more we struggling with all this will surely understand that all are connected to one another

Kyrgyzguy

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This post so cool

fuer44

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Quote from: shawn995 on October 19, 2017, 12:25:45 AM

Quote from: Turan100 on September 30, 2017, 04:15:43 PM

the price inflation and deflation depends on peoples holding it in their wallets i mean not the fishes in the sea am talking about the big whales of bitcoin, and stays increasing by time that's the algorithm of bitcoin, but sometimes we see a small decreasing that because of the demand and such, anyway we can't predict bitcoin scam but make sure that bitcoin never goes down down.

Inflammation and deflamation these are two both opposite things in the sense. For example if you have money in your wallet like 10BTC and the price of bitcoin increased after some times then the money in your pockets is increased it is called inflammation while the opposite of this process is called deflamation

does that mean deflamation can be interpreted as a price reduction? means it can be interpreted also, if the deflamation is the opposite of inflation. if for example inflation is a rising price, and deflamation is a falling price.

the rise

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DGbet.fun - Crypto Sportsbook

Quote from: bachtiar13 on October 22, 2017, 01:53:19 AM

Inflation and Price Deflation and Money Supply
is inflation in other countries already good? if I think inflation in the country is very bad, why I say very bad because inflansi in Indonesia is very unclear. the price of prices in Indonesia is very chaotic according to me because the price can go up and can go down at will. depending on the superior leaders

That's how governments intervene in currency sovereignty, if they do not do it then the price will never stagnate as we see in bitcoin today. For economic stability, less rapid fluctuations will be a balance that makes it safe for everyone and a balanced economic foundation.

bachtiar13

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Inflation and Price Deflation and Money Supply
is inflation in other countries already good? if I think inflation in the country is very bad, why I say very bad because inflansi in Indonesia is very unclear. the price of prices in Indonesia is very chaotic according to me because the price can go up and can go down at will. depending on the superior leaders

homculus

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It's a percentage. It could be calculated and plotted in discrete yearly steps, but this chart shows the instantaneous (i.e., continuous) rate of inflation. "Annualized" just means that the rates are expressed at each point on the curve as though that rate of inflation were constant for a whole year and the money supply at the end of that year were compared to that at the beginning of the year. Inflation is usually expressed as an annualized rate. When you hear that the Federal Reserve is targeting an inflation rate of 2%, that's an annualized rate.

aencarnaci

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Quote from: Turan100 on September 30, 2017, 04:15:43 PM

the price inflation and deflation depends on peoples holding it in their wallets i mean not the fishes in the sea am talking about the big whales of bitcoin, and stays increasing by time that's the algorithm of bitcoin, but sometimes we see a small decreasing that because of the demand and such, anyway we can't predict bitcoin scam but make sure that bitcoin never goes down down.

Yes, this concept of bitcoin inflation and deflation are only considered by big investment of bitcoin and does not affect the small scaled users ads the don't get any change in there payments. some people who are in the business of holding bitcoin also will face a great crises from the inflation and deflation of bitcoin but mostly it is on small scale now a days because bitcoin has become more stable now. but still no one can predict bitcoins increasing and decreasing price and when there will be inflation or deflation.

shawn995

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Quote from: Turan100 on September 30, 2017, 04:15:43 PM

the price inflation and deflation depends on peoples holding it in their wallets i mean not the fishes in the sea am talking about the big whales of bitcoin, and stays increasing by time that's the algorithm of bitcoin, but sometimes we see a small decreasing that because of the demand and such, anyway we can't predict bitcoin scam but make sure that bitcoin never goes down down.

Inflammation and deflamation these are two both opposite things in the sense. For example if you have money in your wallet like 10BTC and the price of bitcoin increased after some times then the money in your pockets is increased it is called inflammation while the opposite of this process is called deflamation

JohanM

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Quote from: homculus on October 18, 2017, 01:12:05 AM

There are definitely different type of smarts. I know a lot of people that are engineers, but they are still too stupid to see why bitcoin is important and why you must invest a considerable amount of your portfolio into it and hold it long term. They are intelligent, but not really smart.

Meanwhile I only got basic education but im smart enough to know that I must spend 24/7 making more BTC and storing it long term to get richer than all of my industrial engineers combined. In the long term I will laugh at everyone hating on me.

Could be, but I know that there's lots of engineers among the large bitcoin holders because they joined the game way before anybody else.

homculus

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There are definitely different type of smarts. I know a lot of people that are engineers, but they are still too stupid to see why bitcoin is important and why you must invest a considerable amount of your portfolio into it and hold it long term. They are intelligent, but not really smart.

Meanwhile I only got basic education but im smart enough to know that I must spend 24/7 making more BTC and storing it long term to get richer than all of my industrial engineers combined. In the long term I will laugh at everyone hating on me.

BIG Tyrese

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Quote from: Reza16 on October 16, 2017, 10:21:31 AM

I would expect a government controlled digital currency to remove "finality." The government will always want to be the final decision-maker on what transactions, between whoever, should be rescinded or reversed, both for the sake of laws it creates (good and bad) and for the sake of payments it doesn't want to make. That's what we already have. Just because it's digital doesn't mean it's better.

They have that in cash now though. It's infinite even though still subject to inflation and deflation. They aren't the final decision makers in Bitcoin. Bitcoin is decentralized. Yes you have countries making it illegal and trying to tax it. But it would take too much coverage all over the world for any government to be the decision maker within the crypto world.

Reza16

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I would expect a government controlled digital currency to remove "finality." The government will always want to be the final decision-maker on what transactions, between whoever, should be rescinded or reversed, both for the sake of laws it creates (good and bad) and for the sake of payments it doesn't want to make. That's what we already have. Just because it's digital doesn't mean it's better.

_noname_

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Quote from: Turan100 on September 30, 2017, 04:15:43 PM

the price inflation and deflation depends on peoples holding it in their wallets i mean not the fishes in the sea am talking about the big whales of bitcoin, and stays increasing by time that's the algorithm of bitcoin, but sometimes we see a small decreasing that because of the demand and such, anyway we can't predict bitcoin scam but make sure that bitcoin never goes down down.

Deflamation and inflammation are the key words used for to increase and decrease. For example deflamation mean that you have 100$ in your wallet and after some time the value of $ down then automatically the price in your wallet is decreased that is called deflamation.

johnne

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Quote from: Qartersa on October 06, 2017, 01:41:19 PM

Let us keep it as understandable as possible. Inflation is the increase in value of your money in the future while deflation is the decrease in value of your money in the future. That is it. Say for example in inflation, if you have $1 now, you can buy 10 sodas. But immediately two years after, if you have $1, you can only buy 5 sodas with it. In deflation, if you have $1 now, you can buy 10 sodas. But immediately two years after, if you have $1, you can buy 20 sodas with it. Simply put, the value of your money today and in the coming years depends on how well the economy worldwide is doing.

In the world of trading there are a lot of code words just like inflammation and deflation are also used. Inflammation in trading means that the rate of your money is increased in the future for example you have 1usd dollar and you can buy 5 pencil now and after some time you can bought 7 pencil then it is called inflammation while deflation mean decrease the value of money in future.

sheepXcat_sk

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Is inflatory coin like Bitcoin better than for example NEM that has no inflation of coins?

Topic: Inflation and Deflation of Price and Money Supply - page 27. (Read 1451175 times)