Topic: Money & Inflation (Read 714 times)

Even if you have the money, when inflation strikes to your country you will feel the rise of price of your basic commodities. Also I don't think you can earn much if there is inflation on the basic needs to sustain your daily consumptions.

Fist money is designed in such a way to get deflated by the days passes,that is the reason we want to better currency against the defaltion and satoshi believed bitcoin can be one of it so created it in decentralized way and made finite number of coins can be obtained through mining.

Inflation is and always will be a reaction to the bad financial policies established, with cryptocurrencies there is hardly this problem, because it has a behavior that almost depends on bitcoin, and the other currencies follow them, but why? If you start to study the bitcoin graph, it has structure, and many altcoin have structure very similar to bitcoin, but it is because they do not have a life of their own, if we see other currencies, they have their graphs completely meaningless, this is because the currencies basically depend on pump and dump, hence the term that they are all shitcoin until proven otherwise, in some texts like those of Burton, Livermore and Wyckoff they talk a lot about OFFER-DEMAND, and yes, when the market is released is very difficult to have inflation, inflation is like a parasite for every economy, in the case of Venezuela, the economy or some economist can not explain this phenomenon, because it had never presented under any scenario have a country that entails a inflation that its projection will be 3000000%, however, they depend a lot on the bad policies established by the government, the only solution to these problems I see it with an exit from Cryptocurrencies, but bitcoin, if some country takes bitcoin as an alternative source, not only would it have some kind of liquidity, but the bitcoin would be so moved that it would attract the investors of the miniSP500, or SP500 because the amount of money that is could gestate is a lot, economic problems would be solved that have no solution in days or can in hours (This is my theory) I have there and with my knowledge of the market that would propose it.

In real life it is way more complicated than that

Basically, an increase in money supply doesn't always lead to an increase in price inflation rates as the relationship between them can be quite complicated. On fundamental level, price inflation level depends not only on money supply as such but also on the economic growth. For example, if the economic growth outpaces the growth in monetary base, that can lead to price deflation even despite a positive money supply

In the economy there is a rule; As the money supply increases, the inflation rate increases in the long term. But the situation here is not to limit money production, but not to print more of the determined money supply. In other words, as long as any country raises money under certain rules, money does not lose money because of inflation, but if any country exceeds this amount of money and continues to print money, then the inflation rate in that country increases and the country's money loses value. On the other hand, for cryptos, the total supply of many cryptocurreny is clear and this supply cannot be changed. Therefore, it is not possible to see an event like inflation in the cryptocurrency sector. Of course, in case of increasing the amount of supply, loss of reputation in the market and serious depreciation are also inevitable.

your theory is right and I'm sure many agree. I've discussed this in the bitcoin thread, that indeed if a coin of bitcoin does not have a function for economic value, then the price will be difficult to rise due to the absence of functional value. even though the supply is added, it will be useless because there is no function.

Inflation rises when there’s a calamilty and of course the manipulators. Its bad because a lot of cartel on our place and they are really trying to control the price so they have more profit and yeah, the politicians has no will to control that at all, also include the new tax reform or the train law which affect much the price of the basic goods. In terms of cryptocurrency this is just like a law of demand and supply, if there’s a big supply and no demand at law then expect that price to be more cheap.

Totally agree with most of comments. The inflation make me think there are not point to save money at all, you can imagine the money you save, after 10 years it is worthless, so why not spend them now, but then what happened if we need money if we don’t have saving. I think this is why I like bitcoin, there are limit of supply.

It is always the case that the inflation hurts us even when we do not realize or ignore it.Overtime, the money you own become worthless.that is why it is always a better deal to put your money in real assets that grows faster than the average inflation rate over time

Yes, that’s the same thing what is being said a lot of times here that the price of Bitcoin in the market is based on the rate of demand and supply. That’s just the same thing as you’re saying, when there are lots of crypto being supplied and nobody is buying them, the crypto assets will begin to lose value and those that are in possession of the assets will be losing their money (and the price continues to decline as they sell too). It’s just the same thing.

That's the reason why cryptocurrencies have a limited supply. This happens in order to tackle supply. As Bitcoin (for example) will be near to reach its total supply then the price and value is going to increase as people will know that this is the change to get some more of it.  On the contrary, you can see that Federal Banks and Financial institutions print money all the time in order to stabilize economies and give bailouts. Your statement is true, but it has no application to cryptos.

Dogecoin is not a shitcoin

There is no hype in it, it is not even actively developed any more, but its price is pretty resilient (in bitcoins). This tells us a very important thing which most people fail to see. That Dogecoin is likely among the top 10 or even 5 coins with most real world adoption. As its price is ridiculously low, it is very useful for online gambling, and that gives it value. You may not like gambling (which I understand), but this is real use any way you look at it

Also, while doges are not capped, their supply inflation diminishes every year in relative terms (percentages). It means that its monetary base growth is slowing down, and now it is already pretty much insignificant and comparable to capped coins. Bitcoin's monetary base is also expanding if you didn't know, so from any practical point of view it is essentially the same

Dogecoin is not a shitcoin

There is no hype in it, it is not even actively developed any more, but its price is pretty resilient (in bitcoins). This tells us a very important thing which most people fail to see. That Dogecoin is likely among the top 10 or even 5 coins with most real world adoption. As its price is ridiculously low, it is very useful for online gambling, and that gives it value. You may not like gambling (which I understand), but this is real use any way you look at it

Also, while doges are not capped, their supply inflation diminishes every year in relative terms (percentages). It means that the coin's monetary base growth is slowing down, and now it is already pretty much insignificant and comparable to capped coins. Bitcoin's monetary base is also expanding if you didn't know, so from any practical point of view the end result (in terms of new coins mined) is not much different

You posted about inflation. Inflation an attribute of money. Crypto's are a kind of money... Or?
What is your opinion - about this question (and about the thread, ideas behind)?


And a diskussion about Bitcoin on the reddit:
https://www.reddit.com/r/Bitcoin/comments/9u2men/a_criticism_of_bitcoin_as_a_kind_of_money_and_a/

I wonder about this myself, and I've been expecting a crypto meltdown for a while now--not just bitcoin, but all the altcoins and tokens too.  If there's absolutely no barrier to entry to create a currency, and if there isn't any real-world utility in those currencies, how does anyone in their right mind expect them to hold any value?

I don't have any figures as to how many new coins are being produced every year, but I've seen exchanges like Yobit where there are hundreds of them, mostly dead ones that you wouldn't be able to sell at any price.  That's the fate that I'm expecting for most altcoins--forget about inflation; they're going to be worth ZERO. 

Big investors who put money into crypto aren't buying shitcoins like TRUMP or even dogecoin.  I'm pretty sure what they buy is bitcoin & ETH if they invest in crypto at all.  They're also probably trying to make a quick buck, too, as opposed to making a long-term investment. 

I mentioned dogecoin.  That's a coin that's going to have a theoretically unlimited supply if it survives long enough, because there's no cap on how many coins are going to be mined.  If it had a cap, it might be useful in commerce, but it's pretty much always traded pretty cheap.  And that's just one of hundreds of altcoins in existence.  All of these coins are causing "inflation" if only for the fact that there's only so much fiat money being invested into crypto.  There are too many cryptocurrencies in existence and demand doesn't keep up with it.

right, salaries in their work should be calculated correctly by the government, so that they are in accordance with the increase in inflation that occurs. so that the people are not more miserable because they are caught up in inflation

I'm curious where you got the wage rates from 60 years ago

I remember seeing a table with wage rates per hour depending on occupation and starting from 20's of the past century. Their rise was quite on par with inflation, so it is unlikely that wages remained the same in absolute value in the last 60+ years. Care to reveal the source of your data?

Apart from that, people are prone to make lopsided conclusions without taking into account all relevant factors such as technological advances and breakthroughs as well as increases in productivity. So while the price of things like food and clothes remained mostly the same, you can't say the same in respect to things like computers, cars, home appliances, etc, which either didn't exist 60 years ago (personal computers) or were quite expensive (automobiles)

Inflation is not good in our country here in the Philippines and it affects the economy and it hurts people especially those who do not have fulltime jobs hard to spend on inflation. If you're talking about money, I'd rather choose money because money can control how much money you need and how much you can spend on your needs and also you can manage what you need to buy each day for our family needs.

Money and inflation
When there is high demand for goods and services may as much cause a rise in import, and importation of goods and services from an affected inflation country, we definitely be inflated.
What is the effect of inflation??
Inflation causes an increase in overall price level within an economy.

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.

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).

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 loved the story part Sir that will be 250 thousand dollars for the next three minutes 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.

  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.

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.