Topic: Stop Inflation With Crypto? How? - page 2. (Read 666 times)

The initial number was to encourage the government to allow the use of cryptocurrency,
if the initial steps have been met, then the use of cryptocurrencies will be easier.
by using cryptocurrency in daily will make cryptocurrency use will go up and then fiat money will be replaced and forgotten.
switch to an inflation-free currency.

As of now the crypto condition is really turbulent as crypto is in its initial stage of adoption.
This is probably the worst condition for a new kind of growing economy since uneven adoption tends to decline in the potential value of the particular asset.
It will take a good amount of time for a currency like bitcoin to be widely adopted.
Besides that the circulation of bitcoin is currently unstable since few people hold the majority of coins meaning there is a higher probability of manipulation in the market. Nobody will want to invest in a manipulative market. As time passes by and more people join the community, the circulation will stabilize and hence it will lead to stable distribution of coins.

And that is what they did, read this for more information about a venezuelan economist:
https://www.nytimes.com/2019/02/23/opinion/sunday/venezuela-bitcoin-inflation-cryptocurrencies.html

What he says here about the poverty that is going on in their country is true, I mean bitcoin is limitless unlike fiat. Their currency (Bolivar) is getting too much inflation being dependent on US dollar while their prodcuts don't change in price, therefore they adopted crpytocurrency (bitcoin) and they even taught the public about it (kudos on their Government). What helps venezuela is not the cryptocurrency alone, it is their open-minded government that took bitcoin's helping hand to aid their suffering community.

I don't think you are completely right. Surely, sometimes a currency decreases in value and sometimes it increases, but these are just fluctuations. If we are talking about the general tendency, then fiat will necessarily decrease in value over time (okay, Japan's weird on this matter, but it holds for the most part, right?), because that's how fiat works, inflation is considered to be a good thing even, when it's under control, because it encourages to spend money rather than collect it. Cryptocurrencies with limited supply are different in principle. They are not so bound to experience inflation as fiat money is, because it's not possible to create more and more coins, thus devaluating the currency.

When you indicate the inflation then it's getting connected to the government policy, it's all about the current market price and previous market price, I think there is little scope for the cryptocurrency regarding this issue. when the cryptocurrency will be used for every aspect of our life then it will bring a good impact on the monetary world, It includes the inflation rate, But there is little confusion about the cryptocurrency's capacity for controlling the inflation because it's not the issue of this system. yeah, if you could people motivated to Bitcoin more and more by Fiat then the money supply will decrease and the inflation rate could be under controlled. I think that's the one way to make this thing happen.

Basically it will be a slow burn as cryptocurrency obsoletes fiat currency.

It's not going to take any special world event. The wheels have already been set into motion.

at a similar rate?

incomes are higher than 50 years ago, but they haven't beaten inflation---not by a long shot. the last several decades have actually been really stagnant in terms of wage growth. check out this chart:



from 1973 to 2013, wages only grew by 9.2%. over the same period, average prices grew by 424.68%. http://www.in2013dollars.com/1973-dollars-in-2013?amount=100

If we talk about inflation, it means that it is related to the government which continues to print fiat through banks. Government do that for reasons of economic stability, the more fiat circulating the higher the inflation. With words others crypto can not stop inflation, according to the article I read how to deal with inflation is one of them people should save more than shop. Maybe the article gives instructions that can be applied in the world crypto, by suggesting people buy bitcoin with fiat or buy gold with fiat. That's a way to reduce inflation with crypto in my opinion, if you stop it is very unlikely. With crypto it can only reduce inflation.

That's true - it's the best they can do with a unlimited supply of cash, although some countries have fairly low inflation rates right now.

It'll be interesting to see in the future, what countries are going to do with this blockchain technology - will they create their own crypto-currency that has a limited supply as well? That would easily kill inflation, which is still a problem for some countries.

School of Chicago dogma (and lies). No, it is the opposite. The money you refer as "creating", does not exist anywhere. It is from the legalized Ponzi scheme known as fractional reserve banking. This is what produces bubbles, which inevitably pop later.

With deflation, people save money, and only use what they need to use. This means the time they want to invest, it is backed with real money, not thin vapor. It is "slower", but compared to your vapor based economy, it never pops up.

If you don't get it, compare the purchasing power of 1oz of gold.

Deflation is the blessing, inflation is the curse (and time bomb), it is what causes bubbles, such as the 2008 housing bubble. Until you get the Austrian School of economy, you will always live in the dark, spreading the only thing you learned, the dogma from the currently dominating school of economy.

Once you get how a deflationary economy works, you will stop spreading this nonsense. The good thing is, no matter what you think, you cannot stop Bitcoin.

Start reading: https://mises.org/

I think the only way to stop inflation is by moving your money from fiat to bitcoin. the bitcoin value is growing exponentially due to scarcity and high demand by the public. with fiat currency, inflation is inevitable as central banks keep printing more money over and over every day.   

I think cryptocurrency is one of answer to stop inflation.
Inflation created because Federal Reserve always create banknotes. So the supply is more than demand. That is make fiat value decreased, goods become more expensive than before.
In cryptocurrency where have limited supply and to get more crypto must need PoS or Pow. That is no reason to make inflation.
But for poverty side there will still there, anything we do in currency not effect poor people become rich.
They are poor because don't want learn new thing, also lazy...

Tell you something, people here have yet to trash fiat for crypto. Everyday you see more people using USD instead. Ironic isn't? There is some news here and there about some shop accepting crypto, or even a new ATM installed in the same shop, but its very rare and not what you would expect.

I think there is simply not enough knowledge about Bitcoin here.

Bitcoin is a deflationary coin, of course you can use it to prevent your money from losing value, and many people are using localbitcoins to buy (or sell), but for actual purchasing we still revert back to fiat, which is a shame.

If it is so hard HERE for the "switch", i can't imagine how it is in countries with such "perfect" fiat that barely lose 2% yearly. People seem more worried about the natural fluctuations (which are a sign of freedom, a strength rather than weakness) than the prospect of having preserved or even increased (because of fiat inflation) their purchasing power overtime.

It is funny/tragic, we do all ended in poverty here, and yet, there is no "mass" acceptance of crypto. One thing does not lead to the other, something else is needed. Maybe if the entire world economy collapsed (if only 10% of all the money is simultaneously withdrawn from the banks, it would trigger it). But by then it would be too late as all fiats would lose value simultaneously and people would simply not have time to move into crypto.

Sadly only those who have moved or at least diversified a part of their savings into Bitcoin, would survive such a collapse. No matter how much you would want everyone to get a clue, there are some (too many) that would fall behind. This is not Bitcoin fault.

From experience i tell you, once your fiat crashes, only then the "masses" get that they need to change their worthless money into something else, but then its too late and can't do nothing with their now worthless money. Its sad, but those that need it less, have higher chances to get into it than those that desperately need it more.

Unfortunately back when i didn't "need it", i didn't buy. Now i need it, but my worthless money can't buy but a few satoshis a month. Catch 22.

Actually Inflation is a blessing in disguise. Inflation creates increased supply of money in the Economy and thus creating economic growth too. People agree that $1 had much more purchasing power 50 years ago and now we can purchase a lot less things with $1. But what they don't see is how the incomes around the country too have increased at a similar rate. Also the standard of living too of people have increased. The HDI too has increased. These actually are parameters of a happy life. Crypto may not have this advantage as they could lead us into a Deflationary spiral.

Can you expound more on this? How are economists going to solve the problem? Shouldn't it depend on the central banks? "Bitcoin can't do much when we are already talking about economics". Remember that Bitcoin was created after the financial crisis of 2008. So, the goal is definitely to counter inflation.

Surely, bitcoin can help a lot when it comes to people's financial problems but when we talk about inflation, I think it is a completely different thing. Bitcoin can't do much when we are already talking about economics. If countries like Venezuela want to improve their economy, they must rely on their economists to solve the problem.

Basically, if a person takes a degree in economy, they will surely understand what inflation means, and if that person will engage him/herself in crypto, he/she will surely figure out what crypto inflation means as well. And even normal or simple individual can definitely study what cryptocurrency inflation is, in relation to the normal infaltion that is happening in the physical world.

We are not that desperate for bitcoin worldwide adaptation to end our lives in poverty, I am happy with both fiat and cryptocurrency benefitting me and helping me to my daily needs. Cryptocurrency can't end this poverty alone, we need the Government, the Government will provide everything we need for bitcoin mass adaptation to be successful. They could give poor people gadgets and put public wifi for their daily usage of cryptocurrency activity, such as trading, mining and etc.

This is going to be a big project for Governments, though I don't know what it is they are lacking to realize that cryptocurrency needs to be adopted by everyone for our own development.

Exactly. This seems to be an unexpectedly common misconception of a lot of people in the cryptocurrency space. Bitcoin doesn't exist to prevent poverty and to move some of the wealth from the rich to the poor. In a finance perspective, bitcoin exists not to make people rich, bitcoin exists to(supposedly in the future) be a hedge against fiat money that accrues inflation every year. Basically:

I don't think crypto can really help stop inflation, of course, unless the whole fiat is replaced with crypto