slimik174
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March 11, 2018, 07:16:10 AM |
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Bce paвнo нe чeгo нe пoнял
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JasmineToken
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March 11, 2018, 08:33:56 AM |
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Great OP. Explains in detail the causes of inflation and deflation
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MadelynCohen
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March 11, 2018, 03:32:40 PM |
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We all know that inflation and deflation are natural that occurs in the market, is this all the factor affecting the price and value of bitcoin? how about now that many country are going to ban bitcoin because of some accusations ?
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mstfprcn
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March 13, 2018, 06:58:59 AM |
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Money is an abstraction used to settle debts. Notes and coins are physical representations of that abstraction regardless if they are made of gold or paper. The only reason gold was used as the material of choice is it had the desirable properties.
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1jaffa1
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March 13, 2018, 09:03:00 PM |
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Bitcoin is money, it just has all the infrastructure ( Fraud checking and storage etc. ) already built in and only exists digitally, you just have a bunch of people who Bitcoin threatens denying everything and openly refusing to class it as money.
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Newbie Wong
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March 14, 2018, 08:18:42 AM |
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For the "decentralized real economy" to grow, if Bitcoin is the only payment system, then the "economic grow" will be very limited?
That s y ICO and altcoin exist serve as synergy effect. And the Bitcoin be one of the reserved currency.
Is it true?
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Latorre9
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March 15, 2018, 05:07:43 PM |
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Is in your opinion good that bitcoin have a limited money supply in order to prevent the inflation? Thank you
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1jaffa1
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March 15, 2018, 05:08:41 PM |
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This is a consistent increase in the price of goods and services over time. During inflationary times, money loses its "buying" or "purchasing" power, and it takes more units of currency to purchase the same units of goods or services. Over time, inflation lowers the value of each unit of currency.
Deflation is consistent decrease in the price of goods and services over time. Over time, deflation increases the value of each unit of currency.
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Lina_Selfsell
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March 16, 2018, 08:59:16 AM |
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Now more and more people focus on of the application of blockchain. It seems that it works in nearly all of the senarios in daily life .
Using blockchain to transfer money to friends without a bank; to record your utility fee; to track the logistics, or even notarize your marriage, etc.
Anything else you think of how blockchain change our life? Let's have a brainstorm!
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YourHumbleCorrespondent
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March 16, 2018, 04:11:15 PM |
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Hello, world. (Long-time lurker, first-time posting. Apologies for any errors in coding or protocol.) What's missing from this discussion is *disinflation*, a deceleration in the inflation rate rather than a reversal of it. That's what's happening now and I believe that will be the overarching story of cryptocurrency through 2018. An area dedicated to discussing the differences of these two terms and the theories supporting them. I'm looking forward to an in-depth discussion on the subject! I've noticed that confusion between the two seems to come up quite a bit on the forum, and thought it may be reasonable to dedicate a thread on the matter. Pulled from a discussion in Wall Observer
Price-Deflation is what you are used to hearing about in Bitcoin. That term is used to describe the prices of goods/services as they decrease, because the value of Bitcoin goes up. Price-Inflation is the opposite. When prices of goods/services increase because the value of Bitcoin goes down. So, when dealing with Price-Inflation or Deflation, there is an inverse relationship of price and value, in regard to goods/services and Bitcoin. Example: As the Bitcoin price goes from $10 to $20, the prices of goods/services goes down from 20 BTC to 10 BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10 BTC to 20 BTC! Why does the price of Bitcoin go up and down? The price of BTC goes up and down based on the exchange rate, or market price, which is set by buyers and sellers, or traders. They directly trade the Bitcoin currency with all sorts of other currency, and even some with gold; the most popular being the USD (US dollar). They set the price when executing orders to buy or sell. I will get into the actual reason of why the price fluctuates in the last section.
Now that we've gone over PRICE Inflation and Deflation (which honestly, to me, is a term made popular by Keynesian's to hide the real facts, as price inflation/deflation is simply the market exchange rate, reflective of the money supply into a currency from itself and other currencies), let's go over the REAL inflation/deflation of a currency (otherwise known by many as Monetary Inflation). MoneySupply-Inflation is when the value of Bitcoin decreases when the total supply of Bitcoin increases. In our current state, this is at a generation rate of 25 BTC every 10 minutes. MoneySupply-Deflation will essentially never occur. It is when the value of Bitcoin increases when the total supply of Bitcoin decreases. This may happen, say, when someone loses their private key and all the BTC associated with it are lost. This effectively "makes the rest of us richer". That being said, there is a SET DECREASE in the generation rate of BTC, so you have sort of a "deflationary effect" in the value, as long as more exchange occurs for BTC at a rate which is faster than that set generation rate. When all 21 million coins are produced, the MoneySupply will be neutral, and the value will continue to increase (prices will decrease, consequently), as long as people continue to exchange in BTC. This leads me to the last section.
What determines the PRICE of Bitcoin? The VALUE of Bitcoin at a particular moment. What determines the VALUE of Bitcoin? The SUPPLY and DEMAND of Bitcoin in the economy. What determines the SUPPLY of Bitcoin? Currently, the MoneySupply-Inflation rate of 25 BTC every 10 minutes, and traders willing to SELL Bitcoin to BUYERS in exchange for other supplies of money (currencies).What determines the DEMAND of Bitcoin? Traders willing to BUY Bitcoin from SELLERS in exchange for other currencies. Therefore: BUYERS, SELLERS, and MONEYSUPPLY-INFLATION (miners) determine the VALUE of Bitcoin, which determines the PRICE of BTC as BUYERS and SELLERS trade based on that VALUE (or supply and demand) of Bitcoin. We don't exactly know the totality of the supply and demand. Sure, we could try and aggregate data from all the exchanges, but we will never be accurate as there are exchanges which can not be accounted for (OTC). The cool thing is that we DO know the MoneySupply rate, and we DO know the exchange rate. From this, we can determine a real value of Bitcoin when simply multiplying the two factors; a sort of inflation-adjusted view of the currency. Effectively, the quantitative analysis of supply and demand is really what the currency exchange traders attempt to accurately determine which is conveyed through buying and selling of Bitcoin, setting a VALUE via the PRICED exchange rate of the currency. On a side note, most of the big Market Makers (FX Traders) use this price movement as a way to make a profitable living, as well. Especially when price fluctuations are a consequence of hype or fear (bubbles, cliffs), not factual supply/demand data, and are wildly out of the real price range. Thus, if you analyze the proper macroeconomic data in an attempt to forecast future DEMAND for more Bitcoin (price increase), you will realize some very interesting things, and have a more accurate picture of where the price is going... Happy trading!  before I am much grateful for this knowledge, this is a very useful science for me a beginner, with this post I can learn a lot and many know about bitcoin world. |
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Samk
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March 17, 2018, 05:54:06 AM |
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inflation of price is when the money supply is a large and when money supply is medium and is or controlled then u get more goods and product from the same amount of money as u get when there is more inflation of money. the economy of usa has 100$ as highest denomination where as zimbabwe they has higher denomination for 100$ u get more goods and product as compare to zimbabwean dollar.
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butters04
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March 17, 2018, 03:18:17 PM |
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Would it be economically sustainable if a currency is constantly undergoing disinflation? Hello, world. (Long-time lurker, first-time posting. Apologies for any errors in coding or protocol.) What's missing from this discussion is *disinflation*, a deceleration in the inflation rate rather than a reversal of it. That's what's happening now and I believe that will be the overarching story of cryptocurrency through 2018. An area dedicated to discussing the differences of these two terms and the theories supporting them. I'm looking forward to an in-depth discussion on the subject! I've noticed that confusion between the two seems to come up quite a bit on the forum, and thought it may be reasonable to dedicate a thread on the matter. Pulled from a discussion in Wall Observer
Price-Deflation is what you are used to hearing about in Bitcoin. That term is used to describe the prices of goods/services as they decrease, because the value of Bitcoin goes up. Price-Inflation is the opposite. When prices of goods/services increase because the value of Bitcoin goes down. So, when dealing with Price-Inflation or Deflation, there is an inverse relationship of price and value, in regard to goods/services and Bitcoin. Example: As the Bitcoin price goes from $10 to $20, the prices of goods/services goes down from 20 BTC to 10 BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10 BTC to 20 BTC! Why does the price of Bitcoin go up and down? The price of BTC goes up and down based on the exchange rate, or market price, which is set by buyers and sellers, or traders. They directly trade the Bitcoin currency with all sorts of other currency, and even some with gold; the most popular being the USD (US dollar). They set the price when executing orders to buy or sell. I will get into the actual reason of why the price fluctuates in the last section.
Now that we've gone over PRICE Inflation and Deflation (which honestly, to me, is a term made popular by Keynesian's to hide the real facts, as price inflation/deflation is simply the market exchange rate, reflective of the money supply into a currency from itself and other currencies), let's go over the REAL inflation/deflation of a currency (otherwise known by many as Monetary Inflation). MoneySupply-Inflation is when the value of Bitcoin decreases when the total supply of Bitcoin increases. In our current state, this is at a generation rate of 25 BTC every 10 minutes. MoneySupply-Deflation will essentially never occur. It is when the value of Bitcoin increases when the total supply of Bitcoin decreases. This may happen, say, when someone loses their private key and all the BTC associated with it are lost. This effectively "makes the rest of us richer". That being said, there is a SET DECREASE in the generation rate of BTC, so you have sort of a "deflationary effect" in the value, as long as more exchange occurs for BTC at a rate which is faster than that set generation rate. When all 21 million coins are produced, the MoneySupply will be neutral, and the value will continue to increase (prices will decrease, consequently), as long as people continue to exchange in BTC. This leads me to the last section.
What determines the PRICE of Bitcoin? The VALUE of Bitcoin at a particular moment. What determines the VALUE of Bitcoin? The SUPPLY and DEMAND of Bitcoin in the economy. What determines the SUPPLY of Bitcoin? Currently, the MoneySupply-Inflation rate of 25 BTC every 10 minutes, and traders willing to SELL Bitcoin to BUYERS in exchange for other supplies of money (currencies).What determines the DEMAND of Bitcoin? Traders willing to BUY Bitcoin from SELLERS in exchange for other currencies. Therefore: BUYERS, SELLERS, and MONEYSUPPLY-INFLATION (miners) determine the VALUE of Bitcoin, which determines the PRICE of BTC as BUYERS and SELLERS trade based on that VALUE (or supply and demand) of Bitcoin. We don't exactly know the totality of the supply and demand. Sure, we could try and aggregate data from all the exchanges, but we will never be accurate as there are exchanges which can not be accounted for (OTC). The cool thing is that we DO know the MoneySupply rate, and we DO know the exchange rate. From this, we can determine a real value of Bitcoin when simply multiplying the two factors; a sort of inflation-adjusted view of the currency. Effectively, the quantitative analysis of supply and demand is really what the currency exchange traders attempt to accurately determine which is conveyed through buying and selling of Bitcoin, setting a VALUE via the PRICED exchange rate of the currency. On a side note, most of the big Market Makers (FX Traders) use this price movement as a way to make a profitable living, as well. Especially when price fluctuations are a consequence of hype or fear (bubbles, cliffs), not factual supply/demand data, and are wildly out of the real price range. Thus, if you analyze the proper macroeconomic data in an attempt to forecast future DEMAND for more Bitcoin (price increase), you will realize some very interesting things, and have a more accurate picture of where the price is going... Happy trading! before I am much grateful for this knowledge, this is a very useful science for me a beginner, with this post I can learn a lot and many know about bitcoin world. |
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YourHumbleCorrespondent
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March 17, 2018, 03:27:09 PM |
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I don't see how. There's a hard lower limit. As soon as the inflation rate goes below zero, it then by definition becomes deflation which is, in the long or even intermediate run, unsustainable. But then again, so is hyperinflation (50% per month or more) or even just "high" inflation. The better an economy manages to stay in the sweet spot, say 2%-5% per year, the better its long-term prospects. That's why, unlike a lot of people who come to cryptocurrency from libertarian impulses, I believe in having a sound monetary policy that targets a sustainable inflation rate and a sustainable level of employment. Both these targets can and must change over time. So too can and must the tools used to implement the policy. So too the institutions. Central banks as currently organized are not evil in themselves, but they are vestiges of a fading era, and there is a risk of them overplaying their hand to try to stay relevant for another generation. But there does need to be some kind of coordination of economic goals. Unregulated markets do not have a great track record. Would it be economically sustainable if a currency is constantly undergoing disinflation? Hello, world. (Long-time lurker, first-time posting. Apologies for any errors in coding or protocol.) What's missing from this discussion is *disinflation*, a deceleration in the inflation rate rather than a reversal of it. That's what's happening now and I believe that will be the overarching story of cryptocurrency through 2018. An area dedicated to discussing the differences of these two terms and the theories supporting them. I'm looking forward to an in-depth discussion on the subject! I've noticed that confusion between the two seems to come up quite a bit on the forum, and thought it may be reasonable to dedicate a thread on the matter. Pulled from a discussion in Wall Observer
Price-Deflation is what you are used to hearing about in Bitcoin. That term is used to describe the prices of goods/services as they decrease, because the value of Bitcoin goes up. Price-Inflation is the opposite. When prices of goods/services increase because the value of Bitcoin goes down. So, when dealing with Price-Inflation or Deflation, there is an inverse relationship of price and value, in regard to goods/services and Bitcoin. Example: As the Bitcoin price goes from $10 to $20, the prices of goods/services goes down from 20 BTC to 10 BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10 BTC to 20 BTC! Why does the price of Bitcoin go up and down? The price of BTC goes up and down based on the exchange rate, or market price, which is set by buyers and sellers, or traders. They directly trade the Bitcoin currency with all sorts of other currency, and even some with gold; the most popular being the USD (US dollar). They set the price when executing orders to buy or sell. I will get into the actual reason of why the price fluctuates in the last section.
Now that we've gone over PRICE Inflation and Deflation (which honestly, to me, is a term made popular by Keynesian's to hide the real facts, as price inflation/deflation is simply the market exchange rate, reflective of the money supply into a currency from itself and other currencies), let's go over the REAL inflation/deflation of a currency (otherwise known by many as Monetary Inflation). MoneySupply-Inflation is when the value of Bitcoin decreases when the total supply of Bitcoin increases. In our current state, this is at a generation rate of 25 BTC every 10 minutes. MoneySupply-Deflation will essentially never occur. It is when the value of Bitcoin increases when the total supply of Bitcoin decreases. This may happen, say, when someone loses their private key and all the BTC associated with it are lost. This effectively "makes the rest of us richer". That being said, there is a SET DECREASE in the generation rate of BTC, so you have sort of a "deflationary effect" in the value, as long as more exchange occurs for BTC at a rate which is faster than that set generation rate. When all 21 million coins are produced, the MoneySupply will be neutral, and the value will continue to increase (prices will decrease, consequently), as long as people continue to exchange in BTC. This leads me to the last section.
What determines the PRICE of Bitcoin? The VALUE of Bitcoin at a particular moment. What determines the VALUE of Bitcoin? The SUPPLY and DEMAND of Bitcoin in the economy. What determines the SUPPLY of Bitcoin? Currently, the MoneySupply-Inflation rate of 25 BTC every 10 minutes, and traders willing to SELL Bitcoin to BUYERS in exchange for other supplies of money (currencies).What determines the DEMAND of Bitcoin? Traders willing to BUY Bitcoin from SELLERS in exchange for other currencies. Therefore: BUYERS, SELLERS, and MONEYSUPPLY-INFLATION (miners) determine the VALUE of Bitcoin, which determines the PRICE of BTC as BUYERS and SELLERS trade based on that VALUE (or supply and demand) of Bitcoin. We don't exactly know the totality of the supply and demand. Sure, we could try and aggregate data from all the exchanges, but we will never be accurate as there are exchanges which can not be accounted for (OTC). The cool thing is that we DO know the MoneySupply rate, and we DO know the exchange rate. From this, we can determine a real value of Bitcoin when simply multiplying the two factors; a sort of inflation-adjusted view of the currency. Effectively, the quantitative analysis of supply and demand is really what the currency exchange traders attempt to accurately determine which is conveyed through buying and selling of Bitcoin, setting a VALUE via the PRICED exchange rate of the currency. On a side note, most of the big Market Makers (FX Traders) use this price movement as a way to make a profitable living, as well. Especially when price fluctuations are a consequence of hype or fear (bubbles, cliffs), not factual supply/demand data, and are wildly out of the real price range. Thus, if you analyze the proper macroeconomic data in an attempt to forecast future DEMAND for more Bitcoin (price increase), you will realize some very interesting things, and have a more accurate picture of where the price is going... Happy trading! before I am much grateful for this knowledge, this is a very useful science for me a beginner, with this post I can learn a lot and many know about bitcoin world. |
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RosemaryWarren
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March 19, 2018, 03:14:44 AM |
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Finally someone cared enough to educate users who constantly talk about inflation without any idea what this term actually means.
Well done.
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nanik nasal
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March 19, 2018, 08:40:37 AM |
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inflation is a tendency to increase goods in general and occur continuously. causes of inflation, namely:
1. increasing public demand for goods and services
2. increase in production costs
3. Budget Deficit (APBN)
4. declining rupiah exchange rate
in the economy, deflation is a period in which prices generally fall and the value of money increases. when inflation occurs due to the large amount of money circulating in society, then deflation occurs due to the lack of money in circulation. there are several things that can be the cause of deflation, including:
1. decreased money supply in the community
2. increasing inventory
3. decreasing demand for goods
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AndrewRidley
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March 19, 2018, 02:26:15 PM |
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Inflation and Price Deflation and Money Supply
is inflation in other countries already good? if I think inflation in the country is very bad, why I say very bad because inflansi in Indonesia is very unclear. the price of prices in Indonesia is very chaotic according to me because the price can go up and can go down at will. depending on the superior leaders
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MaryConwell
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March 19, 2018, 02:27:30 PM |
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Economic multi functionallity is needed for the price to not be revolving around scarcity.
At the moment the only thing money is good for is to be used as a medium of exchange or a good or service, it serves no other value.
Should we create a system where that is just a moving part, then we would create function beyond just the that which would impact the value as well.
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cliff9331
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March 20, 2018, 12:46:22 AM |
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inflation and deflation has a good and bad in terms of money or goods in the market. if the price inflates there's a tendency that the goods in the market is adjusting to make them profit and also they relying on what the expense they put just to be profitable. Also the consumer can't make a decision whether they buy or not because of the inflation of the price happened. An when the price deflates, the producer might lower their price of the goods just to make a sold, because if they high the price, there might be the consumer cant afford, and the goods be spoiled. Its just a matter of balancing and computing for the right price at the right profit.
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mstfprcn
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March 20, 2018, 07:17:23 AM |
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There will be deflation when the national debt keeps increasing. We need to shrink the money supply by paying off the debt to have deflation. If the money supply expands, we get inflation, if it contracts, we get deflation.
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