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Title: If anyone can mine how does inflation not occur? Post by: globo36 on January 23, 2014, 11:33:23 AM Hello, If anyone can mine how does inflation not occur?
Title: Re: If anyone can mine how does inflation not occur? Post by: Rannasha on January 23, 2014, 11:40:34 AM Hello, If anyone can mine how does inflation not occur? The amount of Bitcoin available through mining is limited and the rate at which an individual miner gains coins goes down as more miners join the network. While the amount of available coins is currently increasing (you could call this inflation), it happens at a controlled pace and this pace is slowing down until it stops at the cap of 21 million coins. Title: Re: If anyone can mine how does inflation not occur? Post by: OnkelPaul on January 23, 2014, 11:40:59 AM Hello, If anyone can mine how does inflation not occur? Basically, there is a constant mining reward per block (halved every 4 years), and the mining difficulty is adjusted by the network so that there are approximately 6 blocks per hour found. So adding mining power just redistributes the total mining results a little bit. Have you read the FAQ? You really should do that. Onkel Paul Title: Re: If anyone can mine how does inflation not occur? Post by: Barek on January 23, 2014, 12:05:56 PM Bitcoin is often described as deflationary.
However, right now the inflation rate is about 10% per year. Title: Re: If anyone can mine how does inflation not occur? Post by: empoweoqwj on January 23, 2014, 12:19:31 PM Bitcoin is often described as deflationary. However, right now the inflation rate is about 10% per year. What do you mean by that? Title: Re: If anyone can mine how does inflation not occur? Post by: cr1776 on January 23, 2014, 12:26:13 PM Bitcoin is often described as deflationary. However, right now the inflation rate is about 10% per year. What do you mean by that? With the block subsidy being 25 BTC/block and the number of bitcoins already mined around 12.2 million, the growth in the number of available bitcoins causes a roughly 10% per year inflation rate. This decreases each year due to the ratio changing and then of course at the next block subsidy halving in about 2.5 years now. Title: Re: If anyone can mine how does inflation not occur? Post by: empoweoqwj on January 23, 2014, 12:34:41 PM Bitcoin is often described as deflationary. However, right now the inflation rate is about 10% per year. What do you mean by that? With the block subsidy being 25 BTC/block and the number of bitcoins already mined around 12.2 million, the growth in the number of available bitcoins causes a roughly 10% per year inflation rate. This decreases each year due to the ratio changing and then of course at the next block subsidy halving in about 2.5 years now. So you are saying there are 10% more coins in circulation than last year? If so, that's "money supply" not inflation. Also, not all coins mined are in circulation. Some are lost permently. And some are in possession of FBI for example :) Title: Re: If anyone can mine how does inflation not occur? Post by: Barek on January 23, 2014, 12:41:57 PM So you are saying there are 10% more coins in circulation than last year? If so, that's "money supply" not inflation. Also, not all coins mined are in circulation. Some are lost permently. And some are in possession of FBI for example :) Fair enough. I suppose it is nonsense to use inflation or deflation when talking about Bitcoin. There are too many factors besides the money supply that influence that. Title: Re: If anyone can mine how does inflation not occur? Post by: Lauda on January 23, 2014, 12:51:48 PM Everyday some coins get lost, and after 2016 you will look back on this and ask yourself, why didn't I do more research before asking nonsense.
There is a difference between money supply and inflation. Title: Re: If anyone can mine how does inflation not occur? Post by: prezbo on January 23, 2014, 12:52:14 PM So you are saying there are 10% more coins in circulation than last year? If so, that's "money supply" not inflation. Also called monetary inflation (http://en.wikipedia.org/wiki/Monetary_inflation).Title: Re: If anyone can mine how does inflation not occur? Post by: cr1776 on January 23, 2014, 12:56:36 PM Bitcoin is often described as deflationary. However, right now the inflation rate is about 10% per year. What do you mean by that? With the block subsidy being 25 BTC/block and the number of bitcoins already mined around 12.2 million, the growth in the number of available bitcoins causes a roughly 10% per year inflation rate. This decreases each year due to the ratio changing and then of course at the next block subsidy halving in about 2.5 years now. So you are saying there are 10% more coins in circulation than last year? If so, that's "money supply" not inflation. Also, not all coins mined are in circulation. Some are lost permently. And some are in possession of FBI for example :) I'm not saying that, merely explaining the argument. :-) Title: Re: If anyone can mine how does inflation not occur? Post by: empoweoqwj on January 23, 2014, 01:18:44 PM Bitcoin is often described as deflationary. However, right now the inflation rate is about 10% per year. What do you mean by that? With the block subsidy being 25 BTC/block and the number of bitcoins already mined around 12.2 million, the growth in the number of available bitcoins causes a roughly 10% per year inflation rate. This decreases each year due to the ratio changing and then of course at the next block subsidy halving in about 2.5 years now. So you are saying there are 10% more coins in circulation than last year? If so, that's "money supply" not inflation. Also, not all coins mined are in circulation. Some are lost permently. And some are in possession of FBI for example :) I'm not saying that, merely explaining the argument. :-) Cool, no problem. The "argument" was in need of explaining. Thx :-) |