Topic: Inflation and Deflation of Price and Money Supply - page 29. (Read 1475831 times)

Hello there,

Can we ralete the price and money supply of BTC to the political movement of US with other countries?

How big efforts to take Bitcoin down, as strongly will be the price recovery, if it happens (we believe that will).
Governments are trying to control and desestimulate people to buy btc, but i think it's the future of all fiat money is vanish and the BTC will remain as money.

If all Governments decide to get rid of bitcoin then they can get it or at least greatly weaken it.
It is enough to look at the situation with China.
I am sure that many investors from the government invest millions in BTC. But I believe that it will grow more and more.

useful informations about how the price and value of bitcoin go up and down in the market.
but as of now the market is driven by the big players or big whale as we called them. they are the one that control the market now.
bitcoin is a very volatile but as of the moment, bitcoin is the best investment portfolio.  i experienced it myself.. started from january this year. and have a 2000% gain from my capital.. hehe. hope we see one more bull run this year! 10,000$/Bitcoin .. HERE WE COME!! hehehe

Bitcoin stands alone and is unaffected by fiat although intrinsically the dollar still provides a benchmark for every exchange, bitcoin fluctuations are determined by rumors alone and no binding intervention from traders or governments. If we look again, altcoin movements also support bitcoin fluctuations.

Why does the price of Bitcoin go up and down? The price of BTC goes up and down based on the exchange rate, or market price, which is set by buyers and sellers, or traders. They directly trade the Bitcoin currency with all sorts of other currency, and even some with gold; the most popular being the USD (US dollar). They set the price when executing orders to buy or sell. I will get into the actual reason of why the price fluctuates in the last section.

yes good information
demand and supply are two tools through which the price change is done. the demand and supply of money make and elasticity through which inflation happens.

Inflation and Deflation is just really happen every now and then, it depend upon the investor, traders and anyone who use  this Bitcoin to their own Business, it is absolutely being higher of value of currency of Bitcoin if we are continuously patronizing.

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.

I'm in the middle of a deep dive into quantitative analysis of bitcoin's potential monetary value into the future, modeling for various scenarios. In your opinion, when calculating for total amount of bitcoin mined, should I exclude Satoshi's huge account and an estimate for the total amount lost into oblivion, given the likelihood they will likely never be spent or transferred?

Inflation occurs when there is a sustained increase in the general price level. Traditionally high inflation rates are considered to be damaging to an economy. High inflation creates uncertainty and can wipe away the value of savings.
Advantages of Inflation

Deflation is potentially very damaging to the economy and can lead to lower consumer spending and lower growth. For example, when prices are falling, consumers are encouraged to delay purchasing.
A moderate inflation rate reduces the real value of debt. If there is deflation, the real value of debt increases leading to a squeeze on disposable incomes.
Moderate rates of inflation allows prices to adjust.
Moderate rates of inflation is sign of a healthy economy. With economic growth, we usually get a degree of inflation.
Disadvantages of Inflation

High inflation rates tend to cause uncertainty and confusion leading to less investment. It is argued that countries with persistently higher inflation, tend to have lower rates of investment and economic growth.
Higher inflation leads to lower international competitiveness.
Menu costs. – Costs of changing price lists.
Inflation and stagnant wage growth leads to declining incomes.
Inflation can reduce the real value of savings, which might particularly affect old people who live on savings. However, it does depend on whether interest rates are higher than the inflation rate.
While deflation
Low prices for all
This means that low income earners will be able to afford essential items, so they'll be escaping the poverty bracket.
Also, because prices are low, workers may behave rationally and accept wage cuts, decreasing the costs of production for UK firms.
Thats all I can think of from the top of my head.

Very Useful info.

Thanks for the information posted, I feel the value of BTC will continue increasing, but not sow fast as we expect. There is always a pick and from there it might go down.

Yes, it is, but if you look at the altcoins they are much more volatile compared to Bitcoin. 

I Think This Is Singh OF Good Economy

Bitcoin is very volatile do not you think? Sorry, I'm a newbie.

Inflation- Price inflation refers to the decrease in the price of goods if bitcoin price increases. It is now a days measured in CPI i.e. Customer price index . Earlier people used WPI i.e. Wholesale price index to measure the commodities. It was 3.8% in august 2015. Inflation represents the structure of economy.

Deflation-Price deflation refers to the increase in the price of goofs if bitcoin price decreases. It occurs when the real value of inflation decreases to 0%. Therefore deflation increases the real value of money and even the regional economy. This allows a person to buy more goods in same amount of money.
There is jnverse relation in price and value of the product.

yes its always happening in the market..inflation and deflation of price and money supply..maybe of lack of goods some manufacturers companies are not able to produce the volume of the product supply..

Price inflation- It is defined as the value of the goods is decreased if the price of bitcoin increases. The annulised inflation rate in India was 3.8% till august 2015. Most of the people used WPI i.e wholesale price index for all the commodities. But now-a-days people use CPI i.e consumer price index to measure the rate in India.

Price deflation-It is defined as the value of goods when increased if the price of bitcoin decreases. It is the decrease in the price of goods and services. Deflation occurs when real value of inflation decreases to 0% that is negative. Therefore deflation increases the real value of money and regional economy. This allows one to buy more goods and services more with same amount of money.

Can governments opt for deflation? Is that good or bad for economy?

I agree on this. The economy around the world has inflation. Inflation also depends on the structure of the economy. The price of low-level tradeoffs in unemployment is rising, so a 2% inflation rate is justified.