Topic: Inflation and Deflation of Price and Money Supply - page 7. (Read 1450690 times)
i think inflation also affects the performance of the crypto currencies. To avoid confusion, There is no monetary deflation in the sense of money supply contraction. This should be taken into account when investing in bitcoin that every year inflation will take a certain percentage and should be included in we calculations
Around the world the money supply is lower then it was before.
Also we are in the situation when Banks Don't lend out any money.
IF we Can't borrow any money anymore it means Government dont create new money in to circlelation anymore.
for example:
in UK years ago People use to get credit and loans biggest and many People borrowed a lot.
But now Nothing no loans no credit.
We are right now in situation when its good for the money but not good for the people.
My Next question is:
If the goverments around the world burning cash..., Yes they really do that If anyone are surprised here then yes governments fight against inflation to physically destroy fiat currency!
But Still we need to pay back the old loans.... but even we work harder or what ever there is not enough fiat currency to sadisfy our cash needs.
Results will be that we lose homes assets and so coz nobody really cant pay their debt.
If You are not in debt... the Way how it will affect You is that :
If we dont have enough money in circlelation then many business or shops specially local small business Organizations need to close...
Simply coz there is not enough money in cirlelation... People Can't buy or consume so much as before... and that will couse higher unemployement numbers.
Right now is Fiat collecting process
the Only question is:
Are we gona see the new beginning? new boom in Economy?
If not then we will see that Fiat currency will be most valueble asset we have.
Even crypto market is down.
. crypto market is a lot to do with real Economy If the real Economy is bad like right now we not gona see any good bull market anytime soon!!!
Crypto need a lot fiat to enter into crypto market... but If we dont have enough fiat in the world then crypto market will stay down.
ONLY way the cryotocurrency really Can go high when the banks will create other boom... but the boom is not here.
so is hope is did explained all about Economy and markets
Also we are in the situation when Banks Don't lend out any money.
IF we Can't borrow any money anymore it means Government dont create new money in to circlelation anymore.
for example:
in UK years ago People use to get credit and loans biggest and many People borrowed a lot.
But now Nothing no loans no credit.
We are right now in situation when its good for the money but not good for the people.
My Next question is:
If the goverments around the world burning cash..., Yes they really do that If anyone are surprised here then yes governments fight against inflation to physically destroy fiat currency!
But Still we need to pay back the old loans.... but even we work harder or what ever there is not enough fiat currency to sadisfy our cash needs.
Results will be that we lose homes assets and so coz nobody really cant pay their debt.
If You are not in debt... the Way how it will affect You is that :
If we dont have enough money in circlelation then many business or shops specially local small business Organizations need to close...
Simply coz there is not enough money in cirlelation... People Can't buy or consume so much as before... and that will couse higher unemployement numbers.
Right now is Fiat collecting process
the Only question is:
Are we gona see the new beginning? new boom in Economy?
If not then we will see that Fiat currency will be most valueble asset we have.
Even crypto market is down.
. crypto market is a lot to do with real Economy If the real Economy is bad like right now we not gona see any good bull market anytime soon!!!
Crypto need a lot fiat to enter into crypto market... but If we dont have enough fiat in the world then crypto market will stay down.
ONLY way the cryotocurrency really Can go high when the banks will create other boom... but the boom is not here.
so is hope is did explained all about Economy and markets
The Federal reserve model could easily be considered wrong however thats the wheel spinning beneath the worlds economy as the main global reserve currency and some accept their intent is correct.
The major obviously incorrect factor right now is an excessive fiscal budget and its not even about picking side in politics. The forthcoming opposing side to current leadership intend to spend just as much and have no intention of ever returning debt to a surplus situation in the budget. Its apparent inflation or massive deflation from default is likely, a richter scale graph of volatility is likely to strike US dollar and so the world that will effect everyone reading this.
The most positive take would be to assume creditors will continue to float the bad debt (Greece was 'just fine' at its previous low rates) and we only see low scale inflation, how with trillions more debt being added; its like a game Jenga seems to me with upset inevitable.
https://www.youtube.com/watch?v=uD64owa6xh4
Anyway I posted just to mention this video which has both sides to pro and anti federal reserve policy regarding likely inflation. I agree with the idea that inflation is the monetary base, BTC is obviously expanding it but its also a fair argument that new users also help to counter this supply. Any change to block reward is accumulative
also relevant imo https://imgur.com/gallery/2KNvH6J
The major obviously incorrect factor right now is an excessive fiscal budget and its not even about picking side in politics. The forthcoming opposing side to current leadership intend to spend just as much and have no intention of ever returning debt to a surplus situation in the budget. Its apparent inflation or massive deflation from default is likely, a richter scale graph of volatility is likely to strike US dollar and so the world that will effect everyone reading this.
The most positive take would be to assume creditors will continue to float the bad debt (Greece was 'just fine' at its previous low rates) and we only see low scale inflation, how with trillions more debt being added; its like a game Jenga seems to me with upset inevitable.
https://www.youtube.com/watch?v=uD64owa6xh4
Anyway I posted just to mention this video which has both sides to pro and anti federal reserve policy regarding likely inflation. I agree with the idea that inflation is the monetary base, BTC is obviously expanding it but its also a fair argument that new users also help to counter this supply. Any change to block reward is accumulative
also relevant imo https://imgur.com/gallery/2KNvH6J
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. its a wrong?
1800 new btc are mined each day that a 3,81% inflation rate per annum according to https://www.bitcoinblockhalf.com/
Reward drop ETA: Sun, 24 May 2020 13:38:58 GMT according to http://www.thehalvening.com/
==>A lot of the 1800 btc end up beeing sold on exchanges, it's a small factor compared to how much new money is coming in and how many btc from holders are being sold.
As the price rises, the attention on bitcoin increase, it's more positive, more uses are possible, more people are in the money and happy. I think that as the price rises, some want to sell but holders notice we are in a bull market and hold even more because of fomo = fear of missing out. People on the side lines buy, traders go long, miners tend to sell less at first and the price skyrocks in what's still a relatively thin market.
Reward drop ETA: Sun, 24 May 2020 13:38:58 GMT according to http://www.thehalvening.com/
==>A lot of the 1800 btc end up beeing sold on exchanges, it's a small factor compared to how much new money is coming in and how many btc from holders are being sold.
As the price rises, the attention on bitcoin increase, it's more positive, more uses are possible, more people are in the money and happy. I think that as the price rises, some want to sell but holders notice we are in a bull market and hold even more because of fomo = fear of missing out. People on the side lines buy, traders go long, miners tend to sell less at first and the price skyrocks in what's still a relatively thin market.
2019 Deflator - 1st Moon
20190101 - 0.00000001 BTC Destroyed - 0.00000001 BTC 2019 Destroyed - 0.00000001 BTC Total Destroyed
20190102 - 0.00000002 BTC Destroyed - 0.00000003 BTC 2019 Destroyed - 0.00000003 BTC Total Destroyed
20190103 - 0.00000003 BTC Destroyed - 0.00000006 BTC 2019 Destroyed - 0.00000006 BTC Total Destroyed
20190104 - 0.00000004 BTC Destroyed - 0.00000010 BTC 2019 Destroyed - 0.00000010 BTC Total Destroyed
20190105 - 0.00000005 BTC Destroyed - 0.00000015 BTC 2019 Destroyed - 0.00000015 BTC Total Destroyed
20190106 - 0.00000006 BTC Destroyed - 0.00000021 BTC 2019 Destroyed - 0.00000021 BTC Total Destroyed
20190107 - 0.00000007 BTC Destroyed - 0.00000028 BTC 2019 Destroyed - 0.00000028 BTC Total Destroyed
20190108 - 0.00000008 BTC Destroyed - 0.00000036 BTC 2019 Destroyed - 0.00000036 BTC Total Destroyed
20190109 - 0.00000009 BTC Destroyed - 0.00000045 BTC 2019 Destroyed - 0.00000045 BTC Total Destroyed
20190110 - 0.00000010 BTC Destroyed - 0.00000055 BTC 2019 Destroyed - 0.00000055 BTC Total Destroyed
20190111 - 0.00000011 BTC Destroyed - 0.00000066 BTC 2019 Destroyed - 0.00000066 BTC Total Destroyed
20190112 - 0.00000012 BTC Destroyed - 0.00000078 BTC 2019 Destroyed - 0.00000078 BTC Total Destroyed
20190113 - 0.00000013 BTC Destroyed - 0.00000091 BTC 2019 Destroyed - 0.00000091 BTC Total Destroyed
20190114 - 0.00000014 BTC Destroyed - 0.00000105 BTC 2019 Destroyed - 0.00000105 BTC Total Destroyed
20190115 - 0.00000015 BTC Destroyed - 0.00000120 BTC 2019 Destroyed - 0.00000120 BTC Total Destroyed
20190101 - 0.00000001 BTC Destroyed - 0.00000001 BTC 2019 Destroyed - 0.00000001 BTC Total Destroyed
20190102 - 0.00000002 BTC Destroyed - 0.00000003 BTC 2019 Destroyed - 0.00000003 BTC Total Destroyed
20190103 - 0.00000003 BTC Destroyed - 0.00000006 BTC 2019 Destroyed - 0.00000006 BTC Total Destroyed
20190104 - 0.00000004 BTC Destroyed - 0.00000010 BTC 2019 Destroyed - 0.00000010 BTC Total Destroyed
20190105 - 0.00000005 BTC Destroyed - 0.00000015 BTC 2019 Destroyed - 0.00000015 BTC Total Destroyed
20190106 - 0.00000006 BTC Destroyed - 0.00000021 BTC 2019 Destroyed - 0.00000021 BTC Total Destroyed
20190107 - 0.00000007 BTC Destroyed - 0.00000028 BTC 2019 Destroyed - 0.00000028 BTC Total Destroyed
20190108 - 0.00000008 BTC Destroyed - 0.00000036 BTC 2019 Destroyed - 0.00000036 BTC Total Destroyed
20190109 - 0.00000009 BTC Destroyed - 0.00000045 BTC 2019 Destroyed - 0.00000045 BTC Total Destroyed
20190110 - 0.00000010 BTC Destroyed - 0.00000055 BTC 2019 Destroyed - 0.00000055 BTC Total Destroyed
20190111 - 0.00000011 BTC Destroyed - 0.00000066 BTC 2019 Destroyed - 0.00000066 BTC Total Destroyed
20190112 - 0.00000012 BTC Destroyed - 0.00000078 BTC 2019 Destroyed - 0.00000078 BTC Total Destroyed
20190113 - 0.00000013 BTC Destroyed - 0.00000091 BTC 2019 Destroyed - 0.00000091 BTC Total Destroyed
20190114 - 0.00000014 BTC Destroyed - 0.00000105 BTC 2019 Destroyed - 0.00000105 BTC Total Destroyed
20190115 - 0.00000015 BTC Destroyed - 0.00000120 BTC 2019 Destroyed - 0.00000120 BTC Total Destroyed
in Order to somewhere is life the Other side must Die!!
in Order to Something has value it must come from sacrafices.
btc value is based limited supply??
and what Else?
but the btc price is just manipulated by whales.
so it doesnt matter IF the btc cost 3000 or 4000
or Less More...
btc has high value anyways.
in Order to Something has value it must come from sacrafices.
btc value is based limited supply??
and what Else?
but the btc price is just manipulated by whales.
so it doesnt matter IF the btc cost 3000 or 4000
or Less More...
btc has high value anyways.
like in euro zone They keep euro price Up by not printing so much euros.
it Will create artificially higher demand.
it Will create artificially higher demand.
we would have Economical problems Long time ago.
the money has been printed way too much...
and its devalued if the right methods not used by government and feds.
but guess what? : D
Our government not dumb
They have eliminated money supply, Smart ways.
as we all see that cash is Less and Less in circlelation.
the money has been printed way too much...
and its devalued if the right methods not used by government and feds.
but guess what? : D
Our government not dumb
They have eliminated money supply, Smart ways.
as we all see that cash is Less and Less in circlelation.
yes speaking of inflation, every country has its own, but bitcoin and altcoins are worldwide, depending on the country can be much cheaper to invest in crypto!
To be honest, i really upset how people runs our economy nowadays, majority of nations are currently experiencing high inflation rate so that the poverty rate in those country are consistently increasing!! Government around the world should settle this general issue about high inflation rate. because of this value of money depreciate overtime because of this fucking inflation rate!!!
Much depends on the regions. In fact, inflation is not the best indicator of economic stability. Since inflation depends on many factors. in the third world, it is minimal, while in Europe and North America there is a significant increase.
To be honest, i really upset how people runs our economy nowadays, majority of nations are currently experiencing high inflation rate so that the poverty rate in those country are consistently increasing!! Government around the world should settle this general issue about high inflation rate. because of this value of money depreciate overtime because of this fucking inflation rate!!!
That's one the reason of creation of cryptocurrency. Like what happened in venezuela when they experienced hyperinflation since at least 2014. Bitcoin unexpectedly save their country from economic collapse. venezuela uses bitcoin as their currency and it was the first time that bitcoin used as currency.
Because of this, venezuela became one of the Biggest Markets for Crypto in the World.
really?
what i know is that they tried to launch their national crypto the petro twice, and failed both times. the last i've readon the subject was that they were forcing the usage of crypto in some instances (pensions and such), but the petro still hasn't become the national currency.
To be honest, i really upset how people runs our economy nowadays, majority of nations are currently experiencing high inflation rate so that the poverty rate in those country are consistently increasing!! Government around the world should settle this general issue about high inflation rate. because of this value of money depreciate overtime because of this fucking inflation rate!!!
That's one the reason of creation of cryptocurrency. Like what happened in venezuela when they experienced hyperinflation since at least 2014. Bitcoin unexpectedly save their country from economic collapse. venezuela uses bitcoin as their currency and it was the first time that bitcoin used as currency.
Because of this, venezuela became one of the Biggest Markets for Crypto in the World.
To be honest, i really upset how people runs our economy nowadays, majority of nations are currently experiencing high inflation rate so that the poverty rate in those country are consistently increasing!! Government around the world should settle this general issue about high inflation rate. because of this value of money depreciate overtime because of this fucking inflation rate!!!
I look forward to learning more about the market, that examines its underlying "nature." All very intriguing. It seems at first glance there is something "deep". I am watching the ocean and observed that the markets unfolded quite similiarly to stocks.
the market has a disproportionate potential. but for now he presents itself only a jungle filled with chaos.
If everyone hoarded bitcoins.
Bitcoins will end up up up.
Bitcoins will end up up up.
And one day someone finally decides to sell her stash and it all comes down down down...
I agree. The price could crash once a few people started selling but if you could get every holder to really HODL and take away all supply then you'd get some crazy prices. Yes, there are other factors. But decreased supply would make things go haywire.
I'm a supply side economist. Build it and they will come!
A video to watch, and you'll get everything about Inflation, Deflation and Money Supply: https://www.youtube.com/watch?v=THAaIZmxfNA
why do supply of money effect the inflation or deflation
Money supply is simply money in circulation. Monetary policy attempts to control this, thus, attempting to keep a little bit of inflation and keep it in check.
To answer your question:
Picture a helicopter full of unlimited supply of money, just flooding the streets, from city to city, coast to coast, as it drops money into circulation literally. So, given the extra money in circulation, this "waters down" the value of that money. So the $20 dollar bill you pick up will have less purchasing power, because there is soooo much more money in circulation.
Inflation (a little bit, not helicopters), is good -- The simplest way to think about this: We don't want consumers waiting to make a purchase. We want you to walk into a store, see a TV you like, and purchase it. We don't want you to think "hmm... my dollar may be worth more tomorrow, so I will wait". We want you to inherently know that your dollar LOSES value over time due to inflation. So you think "hmm.. my dollar is at peak value today, I will purchase the TV now".
The Fed has target inflation of 2% which has historically kept the economy from going into recession. Deflation has been top of mind for central bankers. They have literally had to throw full weight of their power to try and get inflation to pick up.
Hope this helps!!!!
Love the analogy. What are your thoughts on the effect of liquidity on price?
If the liquidity characteristic of supply is adjusted, could that be a way to regulate price? What if that rate of liquidity change was voted on in a democratic way? I ask because one of the projects I follow, BitBay (BAY) is attempting to do that exact thing. Wondering if the principles hold up or not.
thanks
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