Topic: Inflation and Deflation of Price and Money Supply - page 30. (Read 1424634 times)

EMD looks like it will run out fast, only 31 mil coins
 

Other coins are easier to pump and dump when they are mined..
You can mine other coins and change it to EMD .... peak EMD - peak inflation 

Oooh Yay!  Let us all be like Plato and fake that words and phrases have objective meanings so we can argue about them without having ever acquiring anywhere!There are lots of people brainwashed or dishonest ample to misuse conditions in a way that makes it hard to comprehend issues.  An argument of what the terms indicate only implies that you are a slave to an utterance employing these words, and so you should get others to use them the way you comprehend them.  That looks variety of foolish and pointless (and cultish and spiritual and educational).  What they mean is crucial if you want to comprehend a claim created making use of them, but whoever manufactured the assert can just substitute them with other phrases that are simpler (and often far more numerous).

This rise up and go down are already a traditional process. In trading when the supply is low then in demand the price of that supply will rise up but if the supply are very high then in low demand the price will going down naturally. These supply and demand system chain are mostly common in trading in which hoarding technique is commonly applied to all goods in the market and now is being applied to bitcoin. Thats the fact in trading

A coin with 0% inflation generates a problem: the total amount of product in the society is increasing, but there are no enough coins to "match" them. As currency gets more valuable, people will hoard it instead of investing, things will get problematic.

The rate at which bitcoin rises and falls is one of a kind and that has been bothering me for sometime. Bitcoin could lose up to $300 of its value in just a day and it can also gain more than that in a day.

I'm wondering how alt-coins with unlimited token issuance mechanisms factor into the overall macroeconomic equation. Wouldn't they be essentially the same as central banks, controlling the inflation rates and issuance of the currency?

Good post.
Rising prices and price reductions, yes that is what happens when the sale value of a good thing rises or falls, but it will always happen when the price of an item decreases then the price of other goods will rise, it happens not without reason because from time to time trend Everyone is different, whether it is economic factors, clothing, vehicles, electronics and others.
Therefore inflation and deflation will continue to occur from year to year.
So that determines the bitcoin price, may be true as you say because of the increase and decrease in the price of goods.

Well imo OmiseGo for the win.

A very interesting case does not exist other than this, it will not fully represent the current monetary system (fiat). By carefully observing the system, you may change the system as directed.

Which is potentially the most profitable altcoin in your opinion? Could be that investing in them is a more profitable strategy than mining? Sure, owning mining rigs, you can switch to mining another alts if one of them fails, but the difficulty rises quite fast on all of them, and hardware becomes obsolete in a matter of months. On other hand, investing in a basket of alts, rather than in mining equipment can prove more profitable and trouble free (as there won't be no hassle with installing and setting it).

Be sure to do your due diligence before choosing which alt coin you are switching to.  You are correct, with the difficulty being so high, BTC will eventually need to take action of some sort to stabilize it.

I agree to you, bitcoins difficulty will surely increase due to demand rate increasing as well therefore other coins that has lower value will soon have an increase in demand therefore increasing it's value .

When comparing BTC to a traditional fiat currency, one should take the following into account:

   

• Fiat Currency has attrition due to lost currency but that attrition is simple to rectify because you can just print more to replace it.
     BTC, also, has attrition but those lost coins can't be replaced and must be dragged around by the entire chain for ∞.
  

  This in of itself implies that the production and/or the increasing of decimal places will always have to outpace the attrition of BTC.

•   Fiat Currency has no block chain bloat and no progressive cost of production of currency.
    BTC gets harder and harder to drag around with time. The cost of production is on a progressive scale. (cost more over time)

  This can be seen with rising rates for transaction fees, and the progressive scale in the size of the blockchain itself.

It is natural for transactions to be forgotten over time. Unfortunately, without a way of determining lost coins from saved coins, you can't prune the blockchain if even a way was developed to do so and maintain the cryptographic chain with confirmations.

If compared to a traditional currency, the Dollar, imagine if the first dollar ever created requires a ledger from every transaction that ever was done with it. The ledger would be very large indeed when multiplied by all dollars and their ledgers. If a dollar is out of circulation, one can assume it to be lost and print another without the need to verify it as lost or saved (under a mattress). If the dollar re-enters circulation in the future, you can decrease the supply to adjust properly for the new found forgotten dollar.

In Bitcoin, all "lost" coins must be assumed to be "saved" coins.

So when students, enthusiasts try to apply current tradition metrics to bitcoin, try to make a calculation that represents the differences. There is a difference and the same models won't apply.

How can you solve? Well, you do it the same way countries replace their currencies. After a period of time, you put out notice that BTC will transfer to BTC version2, and you need to transfer you money over or the old ones left behind will be useless.

The EU is the most recent example of this occurring when they switched to the Euro. French Francs, Italian Lire, etc... all switched to the Euro. Some believe they will be switching back. That will be interesting to watch.

The Bitcoin Central Bank:

  Well this is gray. The -core-dev would be the Board, the Miners would be the Reserve Banks controlling flow with 'fees'. It's gray, because if they all went away tomorrow, bitcoin could still work. The Dollar couldn't. Problem is that most end users would just drop out of the market.

Transaction Fees are a form of control, and Time is the punishment for not paying fees. There is a basic cost to fees tho, the actual cost of mining, but there also has to be a profit in mining too. So they have to take the Basic Cost + Profit Margin = Transaction Fee.  Collusion can lead to hefty fees.

I'm not saying that collusion is occurring but that it can occur and if done correctly no one would ever know.

The concept of pre-inflation and deflation of price and money supply + DEMAND is very applicable to bitcoin (BTC) since it is under one economic policy and the money is still involved. It is somewhat reliable if you understand the paradigm is to be aware of whats happening in the bitcoin system.

One dynamic which is well-known but often remains unnoticed in the academic environment is that fiat currencies are inherently depreciative due to their debt-nature (they can appreciate or depreciate one against the other, but are bound to lose value altogether against real assets).

In a hypothetical world with constant demand, Bitcoin would also be depreciative until reaching the asymptotic number of 21 million. However, unlike fiat currencies, it would not be inherently depreciative thereafter.
In the real world, as demand for Bitcoin is variable, its value would:
a) Increase, if demand increased more than supply
b) Remain stable, if demand increased at the same rate as supply
c) Decrease, if demand was less than supply

Supply includes both existing and newly-minted coins offered to the market. Current saving rates on existing coins are relatively high and new bitcoins are minted at a rate of just 4% per year. Therefore supply is relatively low.
Demand is however significantly higher, which explains Bitcoin appreciation and the consequent deflationary trend.

Does this things strongly depicts the state or status of the economy of a certain country? If it is significant change why do it have to go along with what you said deflection.  Can't it go as perfect as it should. In the case of bitcoin which area does it apply? Is it what you said 'inflection' or 'deflection'?

Digital Currency Exchange Rates and the Law of One Price

http://www.swiftcointalk.org/swiftcoin-discussion/digital-currency-exchange-rates-and-the-law-of-one-price/

white paper

If other currencies recognize inflation or decline in currency values, then Bitcoin only recognizes deflation, or reduces the production of Bitcoin that makes the value of Bitcoin increasingly uphill.
It's what makes many investors and stock players use Bitcoin as an asset to secure their finances.
So far many investors and countries are investing in investment funds into cryptocurrency companies and blockchain industries to improve Bitcoin infrastructure and services by looking at price deflation in the bitcoin.

Many people want to buy bitcoin. Because bitcoin memamg is a highly valuable crypto currency. And this is very influential on the real currency. I think we can not predict the inflation problem and deflation of fiat currencies at this time. But it is expected that bitcoin will become the most expensive electronic currency. But the only problem is bitcoin is the electronic currency. So bitcoin will not be able to circulate as real as other fiat currencies. Bitcoin is not acceptable in some places that do not have access to buying and selling with bitcoin. All need technical to use bitcoin like fiat money

ryptocurrency, there are two main types of ecosystems. Either a cryptocurrency is inflationary – with new coins generated by mining or staking – or it is deflationary. A lot of people claim bitcoin’s deflationary status is a problem, and how minor inflation could alleviate these concerns. However, there are different aspects of either concept that need to be taken into account first.