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[kaselit]

UPDATE

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[AtheistAKASaneBrain]

I don't know the details but as I understand Bitcoin is inflationary until 2140, but the rate gets decreased a lot and at about 2025 the inflation % is so small that is negligible. The rate of coins being lost forever will be even bigger than the newly mined coins which means it will be deflationary even if we aren't past 2140 yet.

[Godly.]

Bitcoin cannot inflate, the number of Bitcoins decreases. It is virtually impossible for Bitcoins to inflate.

[saturn643]

Bitcoin cannot inflate, the number of Bitcoins decreases. It is virtually impossible for Bitcoins to inflate.

Uh.. NO!

Bitcoins are generated in the process of mining up to around 2140. The number of Bitcoins continually increases until then. As said earlier, the rate of the supply if Bitcoin increasing will decrease exponentially, but the supply is still increasing.

[Amph]

Bitcoin cannot inflate, the number of Bitcoins decreases. It is virtually impossible for Bitcoins to inflate.

Uh.. NO!

Bitcoins are generated in the process of mining up to around 2140. The number of Bitcoins continually increases until then. As said earlier, the rate of the supply if Bitcoin increasing will decrease exponentially, but the supply is still increasing.

but you can look at this from another point of view, which mean that inflation is decreasing every 4 years with bitcoin, and will reach almost zero in few years, no need to wait 2140 for that to happen

[Pierre 2]

This shows mostly short term inflations and run offs.
In long term there will be less effective inflation.

[FrostStick]

I don't think the problem you're talking about is inflation. In fact inflation with bitcoins is perfectly reasonable and it will become deflationary as the block rewards decrease over time. It's not like fiat currency, it has a cap on how much bitcoins can be generated.

I think you're talking about the rich pumping the price of bitcoins and dumping it to make the prices very volatile.

[Mickeyb]

Bitcoin cannot inflate, the number of Bitcoins decreases. It is virtually impossible for Bitcoins to inflate.

Uh.. NO!

Bitcoins are generated in the process of mining up to around 2140. The number of Bitcoins continually increases until then. As said earlier, the rate of the supply if Bitcoin increasing will decrease exponentially, but the supply is still increasing.

but you can look at this from another point of view, which mean that inflation is decreasing every 4 years with bitcoin, and will reach almost zero in few years, no need to wait 2140 for that to happen

Exactly this! Already around the year 2028 the inflation rate will be very low. There will be only about 1.55 BTCs rewarded per block by this time. So this will be a very low inflation rate at this moment and from this time, we will be able to claim that Bitcoin will be almost truly deflationary!

[NorrisK]

I think he means the inflation related to the buying power of the coins as opposed to the total amount of circulating coins.

Value of bitcoin can still fluctuate, one day you may get a Volkswagen for it, while the next day the same btc might buy you a BMW.

[n2004al]

Here is a simple Schema that show how in a limited supply economy can exist inflation and deflation at same time, without the need of introduce or burn money supply. The key is the rich money control.

Hope you enjoy.

Link to schema: http://s9.postimg.org/i1gbkpt4v/SCN_0001.jpg

Questions about your schema:

At point 2 why rich don't spend? Why don't invest? To wait the deflation? If yes how live them without spending? How can make them the life of the rich without spending BIG quantity of money. A rich cannot stay without doing its luxurious life and spend big amounts of money. Since in this point your schema appears doubtful.

At point 7 you tell the rich get their ROI from their investment. So get more than had. Otherwise have no meaning to do investments. The amount of money in circulation is the same. So their ROI is given from the money of the poor. This is the only possible source. But in this way after two or three cycle of deflation all the poor will be dead because will have not more money. Would be taken all from the rich.

Conclusion: this example is only a sophism and not possible to be never verified.

[n2004al]

Here is a simple Schema that show how in a limited supply economy can exist inflation and deflation at same time, without the need of introduce or burn money supply. The key is the rich money control.

Hope you enjoy.

Link to schema: http://s9.postimg.org/i1gbkpt4v/SCN_0001.jpg

Questions about your schema:

At point 2 why rich don't spend? Why don't invest? To wait the deflation? If yes how live them without spending? How can make them the life of the rich without spending BIG quantity of money. A rich cannot stay without doing its luxurious life and spend big amounts of money. Since in this point your schema appears doubtful.

At point 7 you tell the rich get their ROI from their investment. So get more than had. Otherwise have no meaning to do investments. The amount of money in circulation is the same. So their ROI is given from the money of the poor. This is the only possible source. But in this way after two or three cycle of deflation all the poor will be dead because will have not more money. Would be taken all from the rich.

Conclusion: this example is only a sophism and not possible to be never verified.

Dont' spend mean them spend less. Do you know dumping?
However, my dear man, it is a simple schema. But is what happen today.

If I tell don't spend that, for me, mean don't spend and not spend less. Spend less is spend less. This is the meaning of the words used for everyone who name himself as a normal person. You who mean different meanings of the normal words used by everyone, must accompany your posts and schemes with a dictionary where you must explain your meaning of the words you use in order that to not be misinterpreted or even understood.  

And if this your schema (as you write in your last sentence) happen today your schema is again more than out of reality. Because today the amount of money in the economy (every economy) increased with the increase and the development of the economy in the given country. Your schema treat a totally different situation. Treat the case when the amount of money in circulation is fixed and don't change. So both cases are essentially different.

As for the deflation in today's economies I haven't heard deflationary cases in economies since today or, to be honest, maybe I have heard some case but I am not sure. And if happen, is happen only one time in one country. Not to many times as it is supposed in your schema. Anyhow I am not to much informed about this, so I'm waiting your real examples.