[CHART] Bitcoin Inflation vs. Time

[painlord2k]

I'm sure this question has been done to death but I haven't found an answer yet. Why do people talk so often about 2040 and 2140 as the estimated end date of the block subsidy? I had read 2140 in the early days and so took that number for granted. Andreas Antonopoulos uses 2140 in his book. Bank of England talk about 2040 in their papers as do many other people. I always assumed 2040 was typo. To settle it, I've made my own calcs.

BY 2040 99.4% of all BTC will be mined (probably a bit more if the hashrate continue to increase)
By any practical mean the rest of the coins mined will do not matter (for the users at least).

[STT]

It will matter if bitcoin ever became a significant percentage of an nations economic monetary base, that extra bit might mean alot.    Though compared to inflation now and all the QE done seemingly to no great effect that is hard to imagine.  Present system benefits government, the extra coins at that time would benefit development of technology I guess.    

Alot of money from gold mining and value attributed to that by various reserve banks accumulating that as an asset, will be going into tool and large mechanical earth moving equipment and obviously the oil economy also.  If gold ever expanded to be the one largest reserve currency as it has been in the past, then I would guess any related industry such as mining would be quite a safe and profitable investment.
   I should  for comparison look at the percentage gold mined ever year in comparison to its total asset base, though gold is used it can always be melted back down.  

rough google 2,500 / 171,300 tonnes
1.46% more gold per year

[Labumi]

Great chart! Thank you! And you know Austrian Economics well.

Yeah you are right. That austria has a very good economy, but if we can't get something good in the bitcoin then it will not have an impact is best for them. Bitcoin is not something a bad thing if we could figure it out well

[radamiel]

Great chart! Thank you! And you know Austrian Economics well.

Yeah you are right. That austria has a very good economy, but if we can't get something good in the bitcoin then it will not have an impact is best for them. Bitcoin is not something a bad thing if we could figure it out well

I think bitcoin gave many good things than bad things

[HotAmericano]

Hello OP, is that picture mean that the bitcoin price increases has bigger chance to increase bigger what happened in 2-4 years ago?

[eshaal.khan]

  Expansion for this situation is the increment in the supply of cash (now and again called cash supply swelling).

At the point where the chart shows 10% it implies the cash supply is developing at 10% annualized rate by then.

It is some of the time valuable for individuals to be particular (value swelling versus cash supply expansion). Clearly both "sides" trust their meaning of expansion is the right one however it generally prompts disarray and/or battles. On the off chance that everybody essentially utilized the terms value swelling or cash supply expansion it would dependably be clear.

[Gimo]

Hello OP, is that picture mean that the bitcoin price increases has bigger chance to increase bigger what happened in 2-4 years ago?

The price can rise of course. The whole world  wants bitcoin and it's normal that the price is high.

[genos]

Hello OP, is that picture mean that the bitcoin price increases has bigger chance to increase bigger what happened in 2-4 years ago?

The price can rise of course. The whole world  wants bitcoin and it's normal that the price is high.

Yes everyone who know about bitcoin must be wants bitcoin. And I do not think that bitcoin have inflation becouse the maximum amount of bitcoin is only 21 million, so I think the value of bitcoin will always rise. So I do not worry.

[jonatuzc]

Great chart! Thank you! And you know Austrian Economics well.

Yeah, the chart looks great and says a lot about the trend in bitcoin price over time but we wish to see the price going higher and higher contimously forever so that investors that believe and put in their money into bitcoin  make the most out of it.

[egghead123]

[Xester]

The chart is showing a increasing pattern, its going up but it is not enough yet. Many users are saying it will still go up or maybe double the current price by next year. Though there are fears that bitcoin may deflate in value to the recent events such as Circle leaving bitcoins and transferred to paypal and paymaya but the graph has shown increasing pattern. THis is very promising that bitcoin may still go up doubling the current price or more by 2017.

[999coins]

BTC/USD last trade price according to bitcoinaverage.com: 793.93


Close to 800$$   

[eugene265]

800 is coming

[camarasikhou1945]

A clarifying note: These charts show the monetary (supply) inflation of Bitcoin. They bear no relation to price inflation, which is an entirely distinct phenomenon. When Austrian economists say "inflation," they're typically referring to monetary inflation, whereas Keynesian economists are typically referring to price inflation.

Also, please note that the top axis ("Year") on these charts is approximate, based on the scheduled block generation rate of one block per 10 minutes. The actual block generation rate has averaged a bit faster than this, due to the perpetually increasing hash rate, so we're already a little bit further progressed than the labels along the top axis would suggest. This doesn't mean there will be any more than 21M bitcoins; it only means that we'll reach the end of supply generation a little bit sooner than we would have if the hash rate had always held constant.

http://www.mattwhitlock.com/Bitcoin%20Inflation.png

Bitcoin Inflation 4x3.pdf (8"×6") | Bitcoin Inflation.pdf (8½"×11")


http://www.mattwhitlock.com/Bitcoin%20Inflation%20logarithmic.png

Bitcoin Inflation logarithmic.pdf (8"×6")

Permission given to use and reproduce freely.

Inflation only happens when Bitcoins in circulation jumped this will take the value of electronic currency Bitcoin. Looking at the reality for Bitcoin mining harder, which makes electronic currency Bitcoin prices are rising!
I guess in the future Bitcoin currency will rise even higher price 

[JANGKRIK BOSS]

800 is coming

For now we say goodbye to $800, welcome to $1.000. The performance of the bitcoin in 2016 is wonderful, maybe this is the best year since 2009.

[traincarswreck]

Isn't it that inflation is really ultimately a want to measure and address the problem of the health of an economy? We aren't really at all primarily interested in either the price of goods over time, or the supply of a money, but rather the effects of these on our daily living, and the overall evolution of man.

For this I think we can introduce an objective and ultra-stable unit of a value, a value measurement mechanism, in which all parties (at least theoretically) agree on.

And so in regard to monetary inflation, all other things equal, we can understand that, by necessarily devaluing and destabilizing a currency, such a type of “inflation” will move the unit of that current to a lower value in relation to “ an objective and ultra-stable unit of a value”.

And then in regard to inflation where the price of a good has, for whatever reason, risen over time, we can ask ourselves if the value of these goods has risen or not in relation to “an objective and ultra-stable unit of a value”.

[Angel03]

Now bitcoin price 900+ 

[Flirty]

Going to 1000+

[egghead123]

BTCUSD, H4, 2017.01.01 13:52 UTC

[Angel03]

Now +1000