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Title: Bitcoin is still Inflationary! Post by: User705 on November 14, 2013, 02:35:09 AM It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day.
Title: Re: Bitcoin is still Inflationary! Post by: wobber on November 14, 2013, 02:36:28 AM I do think that the price is INFLATED
Title: Re: Bitcoin is still Inflationary! Post by: mvidetto on November 14, 2013, 02:43:49 AM It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day. This is only necessary if the miners are selling the newly minted coins. Else, the amount of traded coins on the exchanges one would think remains stable. Title: Re: Bitcoin is still Inflationary! Post by: Crazy on November 14, 2013, 03:34:48 AM It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day. This is only necessary if the miners are selling the newly minted coins. Else, the amount of traded coins on the exchanges one would think remains stable. Title: Re: Bitcoin is still Inflationary! Post by: 4mherewego on November 14, 2013, 07:20:35 AM (The number of dollars created per day) / (The number of bitcoins created per day) >> 400
Title: Re: Bitcoin is still Inflationary! Post by: davidgdg on November 14, 2013, 05:49:02 PM An inflationary currency is simply one that has an increasing money stock. So, yes bitcoin is inflationary because additional bitcoins are being mined, but it has nothing to do with the price of BTC measured in fiat.
Title: Re: Bitcoin is still Inflationary! Post by: DeathAndTaxes on November 14, 2013, 05:51:46 PM An inflationary currency is simply one that has an increasing money stock. So, yes bitcoin is inflationary because additional bitcoins are being mined, but it has nothing to do with the price of BTC measured in fiat. Well it does to some extent. If x new BTC are being added to the exchange each day (net BTC inflows) then y USD also needs to be added (net USD inflows) or the exchange rate will drop. The higher the exchange rate goes the higher the y/x ratio must also go. Title: Re: Bitcoin is still Inflationary! Post by: reactive4ce on November 14, 2013, 05:57:07 PM An inflationary currency is simply one that has an increasing money stock. So, yes bitcoin is inflationary because additional bitcoins are being mined, but it has nothing to do with the price of BTC measured in fiat. Well it does to some extent. If x new BTC are being added to the exchange each day (net BTC inflows) then y USD also needs to be added (net USD inflows) or the exchange rate will drop. The higher the exchange rate goes the higher the y/x ratio must also go. But when your daytrader, you may buy and sell the same bitcoins/USD many times during one day. So the y/x ratio does not matter much in my opinion Title: Re: Bitcoin is still Inflationary! Post by: kokojie on November 14, 2013, 07:05:12 PM It's nice to see new ATH but bitcoin currently is still very much inflationary. The higher the price the higher the amount of new fiat needed to soak up the new coins created. Where do you think the equilibrium is? At current exchange rate it's about $2 million USD per day. This is only necessary if the miners are selling the newly minted coins. Else, the amount of traded coins on the exchanges one would think remains stable. History shows roughly about half of the mined coins are immediately sold on the exchanges. I would imagine the sold percentage only goes higher during a bubble. |