bitcoinbear
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 01:58:26 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Ceteris paribus, the more USD available, the higher the BTC price. It's just a supply and demand thing. If the supply of USD rises, then their price (in bitcoins) falls.
|
|
|
|
Chalkbot
Legendary
Offline
Activity: 896
Merit: 1001
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 05:27:36 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Ceteris paribus, the more USD available, the higher the BTC price. It's just a supply and demand thing. If the supply of USD rises, then their price (in bitcoins) falls. How long do you think it will take to see this effect? How far will bitcoin price trail inflation?
|
|
|
|
molecular
Donator
Legendary
Offline
Activity: 2772
Merit: 1019
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 05:44:08 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Ceteris paribus, the more USD available, the higher the BTC price. It's just a supply and demand thing. If the supply of USD rises, then their price (in bitcoins) falls. How long do you think it will take to see this effect? How far will bitcoin price trail inflation? -10 minutes. Ben got into bitcoin ![Wink](https://bitcointalk.org/Smileys/default/wink.gif)
|
PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0 3F39 FC49 2362 F9B7 0769
|
|
|
labestiol
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 06:17:18 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Not saying the FED will stop printing anytime soon, but are you implying that since the US gov will increase tax revenue, they'll have to borrow more ? Sound logical to you ? And yes, there's some (inverse) correlation between USD and BTC, but clearly USD value won't be the reason why BTC will go to the moon (ultimately)
|
1BestioLC7YBVh8Q5LfH6RYURD6MrpP8y6
|
|
|
myrkul
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 06:23:24 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Not saying the FED will stop printing anytime soon, but are you implying that since the US gov will increase tax revenue, they'll have to borrow more ? Sound logical to you ? And yes, there's some (inverse) correlation between USD and BTC, but clearly USD value won't be the reason why BTC will go to the moon (ultimately) The value of BTC will stay roughly equal. Just like Gold. Back in the day, a gold coin would get you a nice toga, some sandals, and a high-quality bag to put your stuff in. Nowadays, selling a gold piece will net you enough cash for a nice suit, quality shoes, and a briefcase. Don't confuse the number after the $ for a value. It's a price. As the supply of the dollar skyrockets, the price of BTC, denominated in dollars will necessarily rise. As has been noted, the only way for BTC value to rise is if there's greater demand.
|
|
|
|
DeathAndTaxes
Donator
Legendary
Offline
Activity: 1218
Merit: 1079
Gerald Davis
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 06:54:01 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Not saying the FED will stop printing anytime soon, but are you implying that since the US gov will increase tax revenue, they'll have to borrow more ? Sound logical to you ? And yes, there's some (inverse) correlation between USD and BTC, but clearly USD value won't be the reason why BTC will go to the moon (ultimately) The value of BTC will stay roughly equal. Just like Gold. Back in the day, a gold coin would get you a nice toga, some sandals, and a high-quality bag to put your stuff in. Nowadays, selling a gold piece will net you enough cash for a nice suit, quality shoes, and a briefcase. Don't confuse the number after the $ for a value. It's a price. As the supply of the dollar skyrockets, the price of BTC, denominated in dollars will necessarily rise. As has been noted, the only way for BTC value to rise is if there's greater demand. His point was the fiscal cliff involves tax increases and spending cuts. There is nothing in the "fiscal cliff" which would result in increased printing. The FED may (continue to) increase printing but that has nothing to do with the fiscal cliff.
|
|
|
|
myrkul
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 06:59:02 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Not saying the FED will stop printing anytime soon, but are you implying that since the US gov will increase tax revenue, they'll have to borrow more ? Sound logical to you ? And yes, there's some (inverse) correlation between USD and BTC, but clearly USD value won't be the reason why BTC will go to the moon (ultimately) The value of BTC will stay roughly equal. Just like Gold. Back in the day, a gold coin would get you a nice toga, some sandals, and a high-quality bag to put your stuff in. Nowadays, selling a gold piece will net you enough cash for a nice suit, quality shoes, and a briefcase. Don't confuse the number after the $ for a value. It's a price. As the supply of the dollar skyrockets, the price of BTC, denominated in dollars will necessarily rise. As has been noted, the only way for BTC value to rise is if there's greater demand. His point was the fiscal cliff involves tax increases and spending cuts. There is nothing in the "fiscal cliff" which would result in increased printing. The FED may (continue to) increase printing but that has nothing to do with the fiscal cliff. I love how "cut" has been redefined to mean "reduced increase."
|
|
|
|
labestiol
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 07:59:08 PM |
|
So if the US economy has to print more $$$ to deal with this fiscal cliff I've been reading about in the news will the inflation of the USD cause an increase in BTC price? Or are BTCs relatively pegged to USD?
Not saying the FED will stop printing anytime soon, but are you implying that since the US gov will increase tax revenue, they'll have to borrow more ? Sound logical to you ? And yes, there's some (inverse) correlation between USD and BTC, but clearly USD value won't be the reason why BTC will go to the moon (ultimately) The value of BTC will stay roughly equal. Just like Gold. Back in the day, a gold coin would get you a nice toga, some sandals, and a high-quality bag to put your stuff in. Nowadays, selling a gold piece will net you enough cash for a nice suit, quality shoes, and a briefcase. Don't confuse the number after the $ for a value. It's a price. As the supply of the dollar skyrockets, the price of BTC, denominated in dollars will necessarily rise. As has been noted, the only way for BTC value to rise is if there's greater demand. His point was the fiscal cliff involves tax increases and spending cuts. There is nothing in the "fiscal cliff" which would result in increased printing. The FED may (continue to) increase printing but that has nothing to do with the fiscal cliff. Thanks D&T, you got my point. And regarding BTC value, yep I think it'll go up (and I know the difference between price and value). At the moment, most people don't know about BTC, so to them we could say that the value they attach to BTC is null. Still a lot of people don't understand it, thus they think it's a bad idea, and that their value is also null. With time (hopefully), more and more people will discover BTC and understand it, find it valuable, thus to them, the value they attach to it will increase. Now imagine a kind of "global" value, ie the market value. This is the one which is reflected in the price. This is a function of the opinion of every actor in "The Market". This is not a constant, and it's increasing. The fact that gold's value appear to be nearly constant just mean that it had time to converge (ie roughly everybody knows it, and their opinion on it's value is kinda constant). But "nearly constant" is an overreach. For example, gold's price went up 5 folds in the last 10 years. Fortunately it doesn't mean that USD value went down 80% in the same timeperiod. Everything is not about the dollar. It's about the value of everything compared to the value of everything else.
|
1BestioLC7YBVh8Q5LfH6RYURD6MrpP8y6
|
|
|
myrkul
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 08:09:43 PM |
|
The fact that gold's value appear to be nearly constant just mean that it had time to converge (ie roughly everybody knows it, and their opinion on it's value is kinda constant). And everything is not about the dollar. It's about the value of everything compared to the value of everything else.
Fair point, and I agree with you that when Bitcoin's value does finally converge, it will be much higher than it is now. There's no reason for the FED to stop, or even slow printing of new dollars, "fiscal cliff" or no, though, so I think we can count on it's price in fiat continuing rise, too.
|
|
|
|
labestiol
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 08:15:46 PM |
|
There's no reason for the FED to stop, or even slow printing of new dollars, "fiscal cliff" or no, though, so I think we can count on it's price in fiat continuing rise, too.
Actually it could. Suppose the theoretical case where the fiscal cliff result in a balanced, if not positive, budget. Then the FED could stop printing. But yeah, not going to happen. There might be some tax increase/cut spending, but not as much as people think.
|
1BestioLC7YBVh8Q5LfH6RYURD6MrpP8y6
|
|
|
molecular
Donator
Legendary
Offline
Activity: 2772
Merit: 1019
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 08:35:49 PM |
|
I love how "cut" has been redefined to mean "reduced increase."
next year: "We managed to push the 4th derivative of government debt below zero!!! debt''''(t_now) < 0 !"
|
PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0 3F39 FC49 2362 F9B7 0769
|
|
|
DeathAndTaxes
Donator
Legendary
Offline
Activity: 1218
Merit: 1079
Gerald Davis
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 09:32:28 PM |
|
There's no reason for the FED to stop, or even slow printing of new dollars, "fiscal cliff" or no, though, so I think we can count on it's price in fiat continuing rise, too.
Actually it could. Suppose the theoretical case where the fiscal cliff result in a balanced, if not positive, budget. Then the FED could stop printing. But yeah, not going to happen. There might be some tax increase/cut spending, but not as much as people think. Well not exactly. The FED expansion or contraction of the money supply can be completely independent of the deficit of the govt. When the Federal govt has an imbalance (receipts < projected outlays) it issues debt just like any company or person does. People, companies and countries purchase the bonds and pay for them in Federal Reserve Notes such that Federal Receipts + Funds from Debt Sales = Current Outlays. The US govt can issue all the debt it wants (or issue no debt at all) and it doesn't require changing the money supply a single penny. The Federal reserve is a private cartel of banks who changes the money supply for the stated goal of "controlling inflation" and "maximizing economic output". Those goal (IMHO) are dubious but they exist and the FED will expand or tighten as needed regardless of what the federal govt does. TL/DR: The federal reserve is a private cartel of corporations and just about as federal as federal express. The only difference between federal reserve notes and disney dollars if the former is issued by corporations who has the forsight to get the Congress to bestow it wil rights as legal tender.
|
|
|
|
myrkul
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 09:39:24 PM |
|
TL/DR: The federal reserve is a private cartel of corporations and just about as federal as federal express. The only difference between federal reserve notes and disney dollars if the former is issued by corporations who has the foresight to get the Congress to bestow it with rights as legal tender.
Well, that and the glitter, instead of cocaine. Security features
Disney Dollars are created with anti-counterfeiting features such as microprinting, and hard to scan/copy reflective ink and imprinting on the front and back of the bill. In addition the bills are printed with serial numbers and letters which are unique to each bill. The Dollars have small bits of glitter scattered on them.
|
|
|
|
molecular
Donator
Legendary
Offline
Activity: 2772
Merit: 1019
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 09, 2012, 09:49:31 PM |
|
TL/DR: The federal reserve is a private cartel of corporations and just about as federal as federal express. The only difference between federal reserve notes and disney dollars if the former is issued by corporations who has the foresight to get the Congress to bestow it with rights as legal tender.
Well, that and the glitter, instead of cocaine. Security features
Disney Dollars are created with anti-counterfeiting features such as microprinting, and hard to scan/copy reflective ink and imprinting on the front and back of the bill. In addition the bills are printed with serial numbers and letters which are unique to each bill. The Dollars have small bits of glitter scattered on them. I'd like to see mickey mouse snort a line of glitter!
|
PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0 3F39 FC49 2362 F9B7 0769
|
|
|
thirdchance57
Full Member
![*](https://bitcointalk.org/Themes/custom1/images/star.gif) ![*](https://bitcointalk.org/Themes/custom1/images/star.gif)
Offline
Activity: 190
Merit: 100
★Bitvest.io★ Play Plinko or Invest!
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 16, 2012, 02:20:49 AM |
|
Security features
Disney Dollars are created with anti-counterfeiting features such as microprinting, and hard to scan/copy reflective ink and imprinting on the front and back of the bill. In addition the bills are printed with serial numbers and letters which are unique to each bill. The Dollars have small bits of glitter scattered on them. lol. it has glitter scattered on them... oh its legit now the only people that i personaly know that see the value of btc are the people who understand the fraud thats going on. the value will increase as more people understand and learn the world we live in.
|
|
|
|
Richy_T
Legendary
Offline
Activity: 2534
Merit: 2240
1RichyTrEwPYjZSeAYxeiFBNnKC9UjC5k
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 16, 2012, 04:42:47 PM |
|
I love how "cut" has been redefined to mean "reduced increase."
It's been that way for a long time. It's one of the more pernicious examples of statist doublespeak.
|
1RichyTrEwPYjZSeAYxeiFBNnKC9UjC5k
|
|
|
bitboyben (OP)
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 17, 2012, 05:54:18 AM |
|
Isn't Walmart considering thier own currency? The mart?
|
Why did I sell at $5! Come back to me my old bitcoin! 1GjeBGS4KrxKAeEVt8d1fTnuKgpKpMmL6S If you don't like the price of BTC come back in 8 hours.
|
|
|
Rudd-O
Newbie
Offline
Activity: 56
Merit: 0
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 17, 2012, 08:44:19 AM |
|
Isn't Walmart considering thier own currency? The mart?
I thought they had their own currency already -- EBT. Oh SNAP.
|
|
|
|
myrkul
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 17, 2012, 02:12:53 PM |
|
Isn't Walmart considering thier own currency? The mart?
I thought they had their own currency already -- EBT. Oh SNAP. *golf clap*
|
|
|
|
cypherdoc
Legendary
Offline
Activity: 1764
Merit: 1002
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
November 17, 2012, 03:39:25 PM |
|
gold and silver wont pan out as well as they planed... why? Because Bitcoin ![Wink](https://bitcointalk.org/Smileys/default/wink.gif) Weird. At this point usually cypherdoc jumps in and posts something about the daaash for digital caaash. yeah, i was travelling. admit it; it just rolls off your tongue. ![Wink](https://bitcointalk.org/Smileys/default/wink.gif)
|
|
|
|
|