Because inflation leads to instability in all markets and price perceptions have a negative impact on market players' behavior. In order to protect their assets and to rice their income or profits, all players create a non-fading cycle by increasing the prices of goods and services periodically.
That's right because inflation is a bad impact on the market, so most of it is to increase the prices of goods and services to overcome market inflation 
Topic: Why is Inflation a Bad Thing? (Read 460 times)
because with inflation, it will cause market prices to change very quickly, or even inflation will cause the price of tokens to be worthless in some types of FIAT currencies, therefore inflation is a matter that is very burdensome for prices in the market, and the benefits we can get .
But in crypto currency there is no inflation,the prices were determined by supply and demand since once the number of tokens were created it will have maximum limit so no cause for inflation here,if your fiat undergoes inflation then your crypto currencies will get more value than current so you no need to worry about fiat inflation while holding cryptos. 
because with inflation, it will cause market prices to change very quickly, or even inflation will cause the price of tokens to be worthless in some types of FIAT currencies, therefore inflation is a matter that is very burdensome for prices in the market, and the benefits we can get .
Of course inflation is a bad thing to those who doesn't want progress in life and contented to what they currently have and aside from that it's more applicable to fiat money more than Bitcoin, paper money is unlimited while Bitcoin isn't so it's less chance to happen with Bitcoin.
Because inflation leads to instability in all markets and price perceptions have a negative impact on market players' behavior. In order to protect their assets and to rice their income or profits, all players create a non-fading cycle by increasing the prices of goods and services periodically.
The author is obviously a little confused about the concept of inflation. But still he is right that 1-2% should be in order to avoid negative consequences that may appear in the end.
Why? Because it's like comparing being weak and strong/healthy, which condition is bad? First of course because it needs time to be fixed and during that time you feel bad. Inflation means rise in prices while usually keeping same wage, so much money goes from you pocket or sometimes you even have to make serious economy. Overally it causes panic, people spend less money and business becomes more hard to manage
That depends on inflation rates
Small rates (like 2-3% annually) are useful for the economy as they prevent it from stagnating by stimulating production. So if we take your example with being weak or ill, physical exercise, a bit of stress and some exposure to non-lethal agents can in fact be quite useful and beneficial as it allows the body to fine tune its defenses and keep them up to date, so to speak. Without these stress factors the body will quickly lose its fitness and acquired adaptations
Why? Because it's like comparing being weak and strong/healthy, which condition is bad? First of course because it needs time to be fixed and during that time you feel bad. Inflation means rise in prices while usually keeping same wage, so much money goes from you pocket or sometimes you even have to make serious economy. Overally it causes panic, people spend less money and business becomes more hard to manage.
I just said that on inflation, in bitcoin's situation, yeah hodl is absolutely supportive of inflation, you don't move money and do nothing, that's very bad overally for economy, money don't has to be in stuck.
Bitcoin is very badly designed for lost coins, it needs to be changed.
I just said that on inflation, in bitcoin's situation, yeah hodl is absolutely supportive of inflation, you don't move money and do nothing, that's very bad overally for economy, money don't has to be in stuck.
Bitcoin is very badly designed for lost coins, it needs to be changed.
I agree with the author of the post, inflation at 1-2% is a completely normal situation, and sometimes it is only because of it that everything develops and moves in the structure of the economy. Deflation is even worse than inflation, which is what they really fear. It is impossible for people to buy more than the economy can accept.
The number of bitcoins decreases every year despite the fact that
The number of bitcoins decreases every year despite the fact that
Inflation is an important indicator of instability of a currency or in the economy of the country concerned. Also, controlling inflation rate is not an easy thing and may cause unwanted consequences.
We cannot stop this from increasing because our world continues to develop new technologies that makes inflation more expensive. Its good to determine the value of your money but if you didn't prepare for that you will be lose more in the future, and that’s a bad thing for you. Some people will certainly suggest to prepare themselves for this, because this kind of condition can happen suddenly, the impact is also only on a country, but also other countries especially those that have very good economic links with other countries.
it's bad because it affects a lot of things like excess liquidity and as an indicator to see the level of price change. but inflation won't happen to bitcoin because satoshi created a limited number
If people prefer to have high inflating cryptocurrency to spend instead of bitcoin there are many other options out there with a much higher rate. Bitcoin is seen as digital gold in the eyes of many and alt coins may serve as the daily currency for minor transactions in the future.
It is a bit pointless to see how we would do all sorts of things just to make bitcoin go up in value. The idea almost seems to make things more complicated and maybe worst. The best method I think would be to give it the realistic demands or usage. Why is it dropping in prices? One reason could be because too many are holding bitcoin and are not really using it for the purpose it was made to be. When majority of the people or investors are just waiting for values to go up while only a few are using it really, a sudden dump will always follow after a rise in bitcoin value. This is not good for the bitcoin economy and neither for the investors. This will only lead to no where until people will realize the need to change strategies.
Inflation is a bad thing. It not only affects the flow of economies but also the way of life of every people in each country.
JUst look at how severe the economy of Venezuela right now, I think Zimbabwe felt the same kind of inflation Venezuela had, if not worse.
JUst look at how severe the economy of Venezuela right now, I think Zimbabwe felt the same kind of inflation Venezuela had, if not worse.
In Venezuela, Zimbabwe, Weimar Germany inflation is the effect, not a cause. In the west, we treat inflation as a cause and something to be carefully managed. In Venezuela, Zimbabwe their currency is worthless even if there's zero inflation.
this confuses two different meanings of "inflation".
monetary inflation = an increase in the money supply.
price inflation = an increase in general prices of goods and services.
these terms are related but not interchangeable. monetary inflation can cause price inflation because increasing the money supply essentially devalues each unit of money. but price inflation can be caused by other factors that have nothing to do with money supply---like lack of faith in the currency issuer.
Inflation is a bad thing. It not only affects the flow of economies but also the way of life of every people in each country.
JUst look at how severe the economy of Venezuela right now, I think Zimbabwe felt the same kind of inflation Venezuela had, if not worse.
JUst look at how severe the economy of Venezuela right now, I think Zimbabwe felt the same kind of inflation Venezuela had, if not worse.
In Venezuela, Zimbabwe, Weimar Germany inflation is the effect, not a cause. In the west, we treat inflation as a cause and something to be carefully managed. In Venezuela, Zimbabwe their currency is worthless even if there's zero inflation.
On the other hand, inflation might be needed in the future to subsidize mining in case the hashrate of the network would drop too low after many halvings, and the risk of 51% will become big.
that's really only an issue if we go the big blocker route. in fact, it's probably the biggest argument against ever increasing block size---doing so creates incentives to start inflating supply when miner incentives inevitably start failing. (i think this may have been one of bitmain's ultimate motivations in backing block size increases)
with constantly full blocks and a backlog of demand for confirmations, i have a lot more confidence that bitcoin's design (eventual zero inflation) can work.
On the other hand, inflation might be needed in the future to subsidize mining in case the hashrate of the network would drop too low after many halvings, and the risk of 51% will become big
It doesn't look like a very bright idea
Why should we subsidize mining provided we live up to that? That would most certainly mean making some radical changes in the underlying protocol (likely involving a hard fork) but if it ever comes to such changes, the idea of getting rid of miners altogether and implementing another technology for confirming transactions looks a lot more promising. Mining as we know it today is dragging Bitcoin down as no one will be using it, say, for international settlements while depending on a bunch of rogue miners to confirm these settlements
On the other hand, inflation might be needed in the future to subsidize mining in case the hashrate of the network would drop too low after many halvings, and the risk of 51% will become big.
Side chains have always been pointed at as being the next big thing for Bitcoin, and if that's so, the rewards miners scoop up for merge mining them will significantly contribute to their income if there is enough volume.
With how miners becoming more energy efficient, have more than one source of income, and the price that keeps going up over time, I'm pretty certain that there isn't much to worry about. There is plenty enough time for Bitcoin to accumulate adoption and actual use, and that's what I am looking forward to.
The past has been a great indicator for the future when it comes to halvings versus mining rewards in fiat value, and there is no reason to expect it to change.
I see a lot of anti-inflation sentiment around. I am frankly in disagreement with it all. The 'hodl' mentality is deflationary spiral nonsense which does nothing to help the economy of Bitcoin.
I believe there should be inflation to get the economy of Bitcoin going so the market cap rises on actual economic activity than pointless speculation. This should be fixed at about 1.5% annually. This will encourage investment and commerce, which is the point of a currency.
I believe there should be inflation to get the economy of Bitcoin going so the market cap rises on actual economic activity than pointless speculation. This should be fixed at about 1.5% annually. This will encourage investment and commerce, which is the point of a currency.
Deflationary spiral doesn't apply to Bitcoin in traditional sense, because Bitcoin makes up for a very small amount of financial transactions, and it's not isolated from fiat economy. We would need a big portion of the population switching to Bitcoin in order to start noticing negative effects of deflation.
It's true that deflation to some extent encourages hoarding, but Bitcoin has properties that in certain situations make it preferable to use rather than traditional payment methods. If you need privacy or immutability, you have almost no choice but to use Bitcoin on the Internet. Also, people have time preferences, they don't think about the future 100% of the time, in fact they often care about it not enough. People don't spend fiat on consumer items because they know that it will decrease in value in the future, if this was the case, they would just invest it in some fund.
On the other hand, inflation might be needed in the future to subsidize mining in case the hashrate of the network would drop too low after many halvings, and the risk of 51% will become big.
Inflation is an important indicator of instability of a currency or in the economy of the country concerned. Also, controlling inflation rate is not an easy thing and may cause unwanted consequences.
We cannot stop this from increasing because our world continues to develop new technologies that makes inflation more expensive. Its good to determine the value of your money but if you didn't prepare for that you will be lose more in the future, and that’s a bad thing for you. Jump to: