[CHART] Bitcoin Inflation vs. Time

[malboroman]

The total amount of bitcoin is certain, how can inflation?

More bitcoins have been added/mined every day since it Bitcoin begun. That is inflating the supply of bitcoin in circulation. The supply will keep inflating until all 21 million bitcoins have been issued. Then the inflation will stop. Today there are approximately 16.518 million bitcoin that have been issued through mining.

With current computer capacity invested into bitcoin mining, how many years it will take to reach 21 mln?

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[DannyHamilton]

With current computer capacity invested into bitcoin mining, how many years it will take to reach 21 mln?

It will never reach 12 million. The total will be a bit less than 20999999.9769 BTC

The last fraction of a bitcoin will be released to the miner that solves block number 6929999.  It is difficult to know exactly when that will happen, but it should be approximately the year 2140.  That is approximately 120 years from now.

[Tron Foundation]

Super interesting thread, and cool to see if develop over the years as bitcoin has come to more prominence

[kirito1614]

It gives a relief for us newbie to encourage us to learn about Bitcoins 

[orarider]

Thank you for sharing this but does this graph really affect the economy of a certain country? or does this shows what will be the possible future of bitcoin? can someone explain it in a layman's term.

It does not directly affect the economy of a country, however, in part. It affects every bitcoin user and has a slight impact on the economy. I hope I understand correctly

[cvetanveljanovski]

Could you do this comparison also for Ethereum in a new topic?

[parat8t9]

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.

So judging by these two pictures it seems we have already hit the big spike in terms of Bitcoin and inflation?

I know we went from 50, to 25 then to 12.5 which is a huge leap but I would imagine the inflation rate is only good when compared to the dollar.

So Bitcoin would be deflating at the same time fiat currency is inflating which would reflect more so in price than just a simple deflation of Bitcoin.

[mmortal03]

So judging by these two pictures it seems we have already hit the big spike in terms of Bitcoin and inflation?

I know we went from 50, to 25 then to 12.5 which is a huge leap but I would imagine the inflation rate is only good when compared to the dollar.

So Bitcoin would be deflating at the same time fiat currency is inflating which would reflect more so in price than just a simple deflation of Bitcoin.

Yeah, we've actually gone below the various USD money supply inflation rates.

[marcus_of_augustus]

So Bitcoin would be deflating

No, bitcoin is never deflating in terms of monetary supply, only ever inflating or fixed (in ~2140). Read the left hand side of the graphs you quoted, it is only ever positive, i.e. decreasingly inflationary asymptotic to zero.

[Cocobrayy]

Process inflation of an event is not a high-low price level. That is, the price level is considered high does not necessarily indicate inflation. Inflation is also an indicator to see the rate of change, and is perceived to occur if the price increase process is ongoing. Inflation can be classified into four groups, namely mild, moderate, severe, and hyperinflated inflation. Mild inflation occurs when price increases fall below 10% a year; moderate inflation between 10% -30% a year; weight between 30% -100% a year; and hyperinflation or uncontrolled inflation occurs when price increases are above 100% a year.

[000000000000000public]

@Cocobrayy I enjoyed reading your talented response. This is my first posting ever and I am a Crypto Economist. Please review my trend analysis on the USD and you (obviously already know) that the USD is being printed in mass amounts as we speak and the purchasing power of all using it is decreasing rapidly. Note how the USD inflation rate (see my attached chart) is off the charts compared to the BTC inflation rate discussed. Hopefully the purchasing power remains significantly more fair in BTC; depending on if there are any declines in BTC value over time.
https://bennn.io/AR/charts/M2%20Money%20Stock.png
https://bennn.io/AR/economics-night.html

[onyok]

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.

Sorry guys, but can you explain to me how inflation happening on that graph. I cant understand.

[marcus_of_augustus]

Stop confusing people with babblings about price inflation. This thread is about monetary inflation. Economists are always the same, they are trained to confuse and obfuscate the evils of monetary inflation with babblings about the complicated secondary effects of price inflation. At a minimum you should describe and define the terms you are using before babbling.

Process inflation of an event is not a high-low price level. That is, the price level is considered high does not necessarily indicate inflation. Inflation is also an indicator to see the rate of change, and is perceived to occur if the price increase process is ongoing. Inflation can be classified into four groups, namely mild, moderate, severe, and hyperinflated inflation. Mild inflation occurs when price increases fall below 10% a year; moderate inflation between 10% -30% a year; weight between 30% -100% a year; and hyperinflation or uncontrolled inflation occurs when price increases are above 100% a year.

[Canday]

The value of BTC is chaotic.It is not only offer and desire, but need for privateness.

[Crypto Global]

It is crystal clear that since the introduction of bitcoins, more and more have been issued through mining. The mining process is the control measure of the supply of the bitcoins to the market. However, with time the bitcoins keep increasing, meaning that inflation is at work. As years progress, we are going to see the value of the bitcoin reach its maximum and now start reducing. Considering the pace in which all these is happening, this might take a few more years.

[Tyjul]

It is crystal clear that since the introduction of bitcoins, more and more have been issued through mining. The mining process is the control measure of the supply of the bitcoins to the market. However, with time the bitcoins keep increasing, meaning that inflation is at work. As years progress, we are going to see the value of the bitcoin reach its maximum and now start reducing. Considering the pace in which all these is happening, this might take a few more years.

Bitcoin is mostly immune to all types of inflation, but some kinds like fractional-reserve banking can still happen.The price of bitcoins will change over time, and nobody has a crystal ball that can predict the price.

[fanou1988]

I think the predictability  of inflation rate will be  one of the key features for bit coin  change to real currency.

[Pressessidow]

Or, just, when there is blood int he streets, buy. Even if it is your blood operating.What to get? This is the tough element.

[Robert78]

Pictures just show the past tendency of Bitcoin value, but can not exactly predict  the future.

[BitcoinMarketer39]

time is so fast..i do not know about the chart bitcoin inflation but if you are a dollar earner you always love to see it if increases because a big help for you..