[CHART] Bitcoin Inflation vs. Time

[bongnor531]

The price of a bitcoin is determined by supply and demand. When demand for bitcoins increases the price increases as well  when demand falls for btc the price falls. There is only a limited number of bitcoins in circulation. What happen when the circulation over and all of btc will be mine?

[thachthuat]

Inflation in this case is the increase in the supply of money (sometimes called money supply inflation).
At the point where the graph indicates 10% it means the money supply is growing at 10% annualized rate at that point in time.

It is sometimes useful for people to be specific (price inflation vs money supply inflation).  Obviously both "sides" believe their definition of inflation is the right one but it always leads to confusion and/or fights.  If everyone simply used the terms price inflation or money supply inflation it would always be clear.

[Racc00n]

How can we talk about inflation when it's deflationary cryptocurrency?
Supply will remain the same, difficulty will increase and current drop is no more than just correction that will be followed by next bullrun
Just #BTFD and hodl

[asher2]

How can we talk about inflation when it's deflationary cryptocurrency?
Supply will remain the same, difficulty will increase and current drop is no more than just correction that will be followed by next bullrun
Just #BTFD and hodl

Supply will remain the same is really good

[phucngungoc]

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.

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




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

Permission given to use and reproduce freely.

You can see that bitcoin prices have been moving slightly and moving sideways today, bitcoin is now correcting at $ 6750 and my analysis suggests that the possibility of bitcoin prices continuing to rise is very high. , you can see that the market is volatile and difficult to predict, so be very careful when trading altcoin.

[Legendary1]

How can we talk about inflation when it's deflationary cryptocurrency?
Supply will remain the same, difficulty will increase and current drop is no more than just correction that will be followed by next bullrun
Just #BTFD and hodl

You are write buddy

[awesomianist]

Is there any way to calculate how many Bitcoins have been irrevocably burned?

I know of this thread https://bitcointalk.org/index.php?topic=917913.msg10079318#msg10079318 where someone compiled all known burn address at the time. But is there are latest figure?

[scoin9]

How can we talk about inflation when it's deflationary cryptocurrency?
Supply will remain the same, difficulty will increase and current drop is no more than just correction that will be followed by next bullrun
Just #BTFD and hodl

You are write buddy

True talk @Racc00n, your analysis is very simple and straight to the point, there would be a bull run after this period of slight drop.

[Marsh5]

Bitcoins are created each time a user discovers a new block. The rate of block creation is adjusted every 2016 blocks to aim for a constant two week adjustment period (equivalent to 6 per hour). The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, or approximately four years. The result is that the number of bitcoins in existence will not exceed slightly less than 21 million.Speculated justifications for the unintuitive value "21 million" are that it matches a 4-year reward halving schedule; or the ultimate total number of Satoshis that will be mined is close to the maximum capacity of a 64-bit floating point number. Satoshi has never really justified or explained many of these constants.



Bitcoins may be lost if the conditions required to spend them are no longer known. For example, if you made a transaction to an address that requires a private key in order to spend those bitcoins further, had written that private key down on a piece of paper, but that piece of paper was lost. In this case, that bitcoin may also be considered lost, as the odds of randomly finding a matching private key are such that it is generally considered impossible.

[anhtuan845]

I know where you got 25% from. That's the inflation that occurred in the last year prior to the reward halving. That's not the same as the annualized instantaneous inflation rate.I think right it

[give a chance]

Although i don't understand about this post. But i think it's helpful 

[LuongTran]

so helpfull>thank you!

[Erganadine2728]

Quite nice graph a little understood and well understood also in my opinion 

[Chienna]

Forgive my ignorance here, but I'm not sure I understand this graph. I'm not a math genius or economics genius, but I thought inflation was a rise in prices due to an increase in the money, which is obviously not what we see graphed here. How is inflation defined in this graph?

Inflation in this case is the increase in the supply of money (sometimes called money supply inflation).
At the point where the graph indicates 10% it means the money supply is growing at 10% annualized rate at that point in time.

It is sometimes useful for people to be specific (price inflation vs money supply inflation).  Obviously both "sides" believe their definition of inflation is the right one but it always leads to confusion and/or fights.  If everyone simply used the terms price inflation or money supply inflation it would always be clear.

Honestly, I don't understand the chart above because i'm a newbie. But in my own opinion, bitcoin still call inflationary because bitcoin is limited number only.

[jorgballesteros]

Great chart, very illustrative!

[tenxcoin]

The reward for mining has been high enough that more effort is spent mining than speculating.

[mimienamphine]

We know that btc prices will continue to increase in the future even though sometimes the market is manipulated and this shakes the price of btc down and downwards. As time passes the real value of btc will be revealed and only time will tell.

[wyplashdea]

Thanks for the graphics.

¿Theres is no year with negative inflation? To me thats good, it says that BTC had rough times but always was strong enough to recover himself.

Nice and thanks again.

[CoinSpeculator]

These graphs show the rate BTC coins are delivered to the market, ruled by the BTC software. They tell us that, as time pass by, less and less new coins are introduced in the market. If the demand (or expectations) is rising, then the BTC value rises. The ups and downs that we are facing relate to the last phrase.

[sirtim20]

Traditional inflation by increasing the circulated volume will not happen to Bitcoin- the maximum value is set at 21 million, and once it gets there, no more blocks rewards given to the miners will occur. At that time, it’s assumed that people will only mine for transaction fees. Bitcoin is mostly immune to all types of inflation, but some kinds like fractional-reserve banking can still happen; however, even that’s difficult, as the blockchain is public and everyone can see deposits and make sure that all deposits are correctly recorded.