Money & Inflation - page 3. | Bitcointalksearch.org

berrehili

copper member

Activity: 21

Merit: 5

Quote from: el kaka22 on January 02, 2019, 11:15:43 AM

Quote from: berrehili on January 02, 2019, 07:14:25 AM

Hi everyone,

Please watch this video:
https://www.youtube.com/watch?v=THAaIZmxfNA

Quantity of money per unit of output and price index is deeply intricate. At the end of the day, the more cryptocurrency is produced without needed and real usage in economy the lower the value of your crypto assets.

I loved the story part Cheesy

Sir that will be 250 thousand dollars for the next three minutes Cheesy

That could be reality one day, I mean of course not in 20 years because even in 20 years the three minute conversations won't be that expensive but lets take a look at the previous 20 years and what people have come so far.

Since the year of 2000, people on average had to endure 2% inflation in USA. That means every year put up 2% on top of the thing you want. That means no matter what you had to become richer by 2%+ in order to not lose value in the things you own. Now houses of course made the most leap until 2008 but since than there has been a bit of drought, prices did dropped a bit and than went up again a bit but the volume has been issue.

Salaries didn't increase at all compared to 60+ years ago let alone 20 years ago, the salaries stayed around the same or just a bit more whereas inflation is increasing. Investments made huge leaps but than crashed at 2008 and than made another huge leap and crashed this year. Basically while inflation was going on, people didn't get richer to cover the difference.

Now the real problem is that Central Banks now belong to private banks, and new money doesn't get back in the market through increase of salaries but through loans that are provided to people who already have capital.

For employees, best way to have capital is through real estate, this kind of investment and wealth takes 30 years to build. More time, slower, less and less people that are employees can get rich.

berrehili

copper member

Activity: 21

Merit: 5

Quote from: Kopyleft on January 02, 2019, 11:25:25 AM

Quote from: berrehili on January 02, 2019, 07:14:25 AM

At the end of the day, the more cryptocurrency is produced without needed and real usage in economy the lower the value of your crypto assets.

Are you basing this on the supply of a particular cryptocurrency, or the number of different cryptocurrencies which are in existence?
Most projects out a limit on the supply of their base tokens or coins, so only so much can be created, I would not invest in a project with an infinite supply, or one which does not burn unsold tokens.

As for the number of available cryptocurrencies, this matters little as majority of the market is shared among the few at the top of the rankings.

I don't see why having an infinite supply should be a problem.

Let's say for example, you have a crypto-currency that sees its usage (and velocity) grow by 100% every year, and the coins supply grows something like 5-6% per year. Then you won't see an overflow of coins depending on the supply. Plus Blockchains could have a rule, something like : "no activity, no transaction, no new coins".

Same for burning or not, the important part is : Are people dumping the supply below market rate (on a speculator point of view I mean).

Kopyleft

member

Activity: 168

Merit: 15

Future of Security Tokens

Quote from: berrehili on January 02, 2019, 07:14:25 AM

At the end of the day, the more cryptocurrency is produced without needed and real usage in economy the lower the value of your crypto assets.

Are you basing this on the supply of a particular cryptocurrency, or the number of different cryptocurrencies which are in existence?
Most projects out a limit on the supply of their base tokens or coins, so only so much can be created, I would not invest in a project with an infinite supply, or one which does not burn unsold tokens.

As for the number of available cryptocurrencies, this matters little as majority of the market is shared among the few at the top of the rankings.

el kaka22

legendary

Activity: 3654

Merit: 1165

www.Crypto.Games: Multiple coins, multiple games

Quote from: berrehili on January 02, 2019, 07:14:25 AM

Hi everyone,

Please watch this video:
https://www.youtube.com/watch?v=THAaIZmxfNA

Quantity of money per unit of output and price index is deeply intricate. At the end of the day, the more cryptocurrency is produced without needed and real usage in economy the lower the value of your crypto assets.

I loved the story part Cheesy

Sir that will be 250 thousand dollars for the next three minutes Cheesy

That could be reality one day, I mean of course not in 20 years because even in 20 years the three minute conversations won't be that expensive but lets take a look at the previous 20 years and what people have come so far.

Since the year of 2000, people on average had to endure 2% inflation in USA. That means every year put up 2% on top of the thing you want. That means no matter what you had to become richer by 2%+ in order to not lose value in the things you own. Now houses of course made the most leap until 2008 but since than there has been a bit of drought, prices did dropped a bit and than went up again a bit but the volume has been issue.

Salaries didn't increase at all compared to 60+ years ago let alone 20 years ago, the salaries stayed around the same or just a bit more whereas inflation is increasing. Investments made huge leaps but than crashed at 2008 and than made another huge leap and crashed this year. Basically while inflation was going on, people didn't get richer to cover the difference.

Xk80jq

newbie

Activity: 42

Merit: 0

Inflation is not a good words in the country like Philippines and to others country that belong in the third world country and so stressful. So because of that I can choose money to can manage to support my needs and my family.

berrehili

copper member

Activity: 21

Merit: 5

Hi everyone,

Please watch this video:
https://www.youtube.com/watch?v=THAaIZmxfNA

Quantity of money per unit of output and price index is deeply intricate. At the end of the day, the more cryptocurrency is produced without needed and real usage in economy the lower the value of your crypto assets.

Topic: Money & Inflation - page 3. (Read 691 times)