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1  Other / Politics & Society / Re: Vladimir Putin's approval rating at record levels on: July 23, 2015, 08:20:39 PM
I'm speaking as an outsider, but I think Putin is the worst thing that ever happened to Russia. He is trying to bring back the old Russia by trying to bring former Soviet republics back into Russia's sphere. Ukraine is a classic example of this. They're justification for the invasion of Crimea (and it was an invasion) is that they need to look after their Russian interests. Crimea is just one microscopic part of Russia. So, I hardly think that Crimea would bear any kind of significance to the vitality of the country.
2  Economy / Goods / Re: Prevention is better than a cure. Please escrow. on: July 23, 2015, 03:55:09 PM
I've heard it's always a good idea to get an escrow if you're working with people offshore, but I think it's a good idea whenever you're working with someone new. After all, an ounce of prevention is worth a pound of cure.
3  Economy / Economics / Re: Inflation and Deflation of Price and Money Supply on: July 23, 2015, 02:38:57 AM
Quote from: thefiniteidea on February 09, 2013, 04:37:27 PM
Quote from: EricTyle on February 09, 2013, 03:43:11 PM
Quote from: thefiniteidea on February 02, 2013, 10:57:48 PM
which honestly, to me, is a term made popular by Keynesian's to hide the real facts, as price inflation/deflation is simply the market exchange rate, reflective of the money supply into a currency from itself and other currencies

I'm not sure if it's just me but I had a hard time understanding the underlined. Is that redundant? from itself and other currencies?

Anyways, with the ASICs coming out soon, what do you think the value of bitcoin will do for the the first couple of months? I feel like it will start to drop rather rapidly as people are trying to get their hands on more USD to compensate for their expenses. Then they would start to keep the BTC and the difficulty would rise so it would go back up?

Sorry for the lack of specifics there! My point is:

Price inflation is not only derived from the market price of whatever it is you're exchanging a currency for, but it is also derived from the value of the currency 'itself', meaning the rate of monetary inflation along with supply and demand of that currency.

In other words, prices of good/services (price inflation/deflation) are reflective of the exchange rate due to FX trading and the Bitcoin generation rate due to mining (monetary inflation).

So, 'something' worth BTC1 can 'deflate' in price to BTC0.5 if any or all of these market forces apply to it:

1. The currency exchange rate of whatever that 'something' is usually traded in doubles (BTC/USD increases from $1 to $2 per BTC)
2. That 'something' becomes cheaper to make (greater supply) or needs to stay competitive in price (weaker demand)

Keeping in mind that the currency exchange rate or PRICE of Bitcoin (force 1), is determined by the value of the currency, which is the SUPPLY and DEMAND and so on and so forth as explained in the OP...

Price inflation would be the opposite.

Let me know if that makes more sense lol

Yeah that makes perfect sense. It's about the difference between price and value.
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