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Title: Danger of domination of one player in BTC? BTC as inflation/deflation regulator Post by: gregory51gosh on May 26, 2017, 01:43:41 PM For example a country that has a deflation https://tradingeconomics.com/japan/inflation-cpi can print some money to enter inflation process and exchange it into BTC or other coins (money produced exchanged into assets).
In this terms, the BTC may be a regulation mechanism to avoid/increase inflation - this function was reserved i.e. to gold, but new times are coming. What do You think? Title: Re: Danger of domination of one player in BTC? BTC as inflation/deflation regulator Post by: deisik on May 26, 2017, 03:04:43 PM For example a country that has a deflation https://tradingeconomics.com/japan/inflation-cpi can print some money to enter inflation process and exchange it into BTC or other coins (money produced exchanged into assets). In this terms, the BTC may be a regulation mechanism to avoid/increase inflation - this function was reserved i.e. to gold, but new times are coming. What do You think? Bitcoin is too small for that To make to your idea even remotely relevant, Bitcoin price should be well in the millions of dollars per coin. On the other hand, printing money is not an end in itself, and neither is inflation. The aim of any sane monetary policy is to boost the economy but if the economy is stagnating printing excessive amounts of money is meaningless. And Japan has exactly that problem, so deflation as such is only a tip of an iceberg, so to speak. In other words, it is an effect, not a cause Title: Re: Danger of domination of one player in BTC? BTC as inflation/deflation regulator Post by: gregory51gosh on May 26, 2017, 03:10:12 PM You're right, the cap is too small. But generating demand, it would boost the prize.
I was thinking that the countries with deflation may have potential to do that without a huge interference to their economy. |