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Author Topic: Inflation and Deflation of Price and Money Supply  (Read 509541 times)
Erdogan
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June 27, 2015, 12:24:34 PM

impossible to survive   Tongue
Deflation generally occurs when the supply of goods rises faster than the supply of money, which is consistent with these factors, the supply of money goes down, the supply of other goods goes up, demand for money goes up and finally demand for other goods goes down.
Deflation of prices in a Bitcoin economy is often put forward as a major reason not to depend on such a currency, as it has many ups and down phases at current stage. Smiley
Deflation in supply money usually defined as a general drop in prices of goods and services.
All such inflation and deflation occur randomly,as it part of living. Grin

In a sound situation, a high degree of saving will lower the interest rate, and signal to entrepreneurs that more investing is needed. When new products arrive, some time afterwards, people have the money to spend.

The artificially low interest rate, which can only be brought down by creating new money and ever expanding debt, likewise signals to entrepreneurs to invest. But at the same time, low rates and inflation signals to consumers to spend more. When products are ready, nobody have the money to buy them. That is what we have now, a general oversupply and a general low demand, world wide. That is why the oil price is down.

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July 06, 2015, 06:56:56 PM

Since the value of BTC increases with the increase in demand, what if there is an increase in demand with a proportionate increase in supply? This question is in reference with the estimation of value , when demand intersects supply.

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July 08, 2015, 05:07:06 PM

Since the value of BTC increases with the increase in demand, what if there is an increase in demand with a proportionate increase in supply? This question is in reference with the estimation of value , when demand intersects supply.

There is proportionate supply taking place, the lack of demand is the reason of turbulence and that is what needs to boost and that is how there will be more increase in supply too. When huge demands take place, bitcoin will grow. Such demand can only take place when a major country adopts bitcoin. That is how the flags of the bitcoin empire go high
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July 08, 2015, 09:43:49 PM

Is that not also the benefit of block halving every 210,000 Blocks?  To decrease the supply rate, thus increasing the value even if Demand is constant. (demand should continue to grow in theory)
lady Royal
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July 09, 2015, 10:57:11 AM




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 20BTC to 10BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10BTC to 20BTC!

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.





can u please explain me how the prices of bitcoin rise and fall..??
and how trading effect it...
as i have some exp in trading according to which there are trends of buyers /sellers .. the prices of currency only fall/rise  in some exceptional case...

BillyBones
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July 11, 2015, 10:51:20 AM

can u please explain me how the prices of bitcoin rise and fall..?? and how trading effect it... as i have some exp in trading according to which there are trends of buyers /sellers .. the prices of currency only fall/rise  in some exceptional case...
Regards to Bitcoin rise and fall, you can watch excellent Bitcoin Videos in YouTube by searching through in, or if you want him only to explain, then send Private Message to him, I am sure he would help you out.
lady Royal
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July 12, 2015, 09:30:52 AM

can u please explain me how the prices of bitcoin rise and fall..?? and how trading effect it... as i have some exp in trading according to which there are trends of buyers /sellers .. the prices of currency only fall/rise  in some exceptional case...
Regards to Bitcoin rise and fall, you can watch excellent Bitcoin Videos in YouTube by searching through in, or if you want him only to explain, then send Private Message to him, I am sure he would help you out.


OKi .. thanks ..  first i'll go with YouTube video then if still i found some issue then will ask him or will start thread to get understanding of it . Smiley Smiley Smiley

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July 13, 2015, 06:13:34 AM

Thanks for the thread it's interesting even when you have good knowledge of Bitcoin in general.
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July 20, 2015, 11:42:33 AM

Thanks a lot for the thread. Its quite informative. Its interesting to know about the relationship. Reading it for the first time. Smiley

I am still Selling

Kindly Email Me at :- DishSling14@gmail.com
Dotakels
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July 21, 2015, 04:28:15 AM




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 20BTC to 10BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10BTC to 20BTC!

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.





can u please explain me how the prices of bitcoin rise and fall..??
and how trading effect it...
as i have some exp in trading according to which there are trends of buyers /sellers .. the prices of currency only fall/rise  in some exceptional case...

he already explained it, he said that bitcoin prices goes up or down by means of how many coins that buyers bought. and also depends on market price.

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July 22, 2015, 04:22:29 PM

bitcoin kurs make depresiative now, but we must have faith if btc will up and increase again later

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mentat47
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July 23, 2015, 02:38:57 AM

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

I'm not sure if it's just me but I had a hard time understanding the underlined. Is that redundant? from itself and other currencies?

Anyways, with the ASICs coming out soon, what do you think the value of bitcoin will do for the the first couple of months? I feel like it will start to drop rather rapidly as people are trying to get their hands on more USD to compensate for their expenses. Then they would start to keep the BTC and the difficulty would rise so it would go back up?

Sorry for the lack of specifics there! My point is:

Price inflation is not only derived from the market price of whatever it is you're exchanging a currency for, but it is also derived from the value of the currency 'itself', meaning the rate of monetary inflation along with supply and demand of that currency.

In other words, prices of good/services (price inflation/deflation) are reflective of the exchange rate due to FX trading and the Bitcoin generation rate due to mining (monetary inflation).

So, 'something' worth BTC1 can 'deflate' in price to BTC0.5 if any or all of these market forces apply to it:

1. The currency exchange rate of whatever that 'something' is usually traded in doubles (BTC/USD increases from $1 to $2 per BTC)
2. That 'something' becomes cheaper to make (greater supply) or needs to stay competitive in price (weaker demand)

Keeping in mind that the currency exchange rate or PRICE of Bitcoin (force 1), is determined by the value of the currency, which is the SUPPLY and DEMAND and so on and so forth as explained in the OP...

Price inflation would be the opposite.

Let me know if that makes more sense lol

Yeah that makes perfect sense. It's about the difference between price and value.
misterycoins
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July 29, 2015, 08:14:37 PM

Deflation is worse than inflation. Look at Japan. Deflation decreases money velocity, people tend to hoard instead of spending and spending is crucial to the growth of GDP.

Feboprimo
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July 30, 2015, 04:43:56 PM

Deflation is worse than inflation. Look at Japan. Deflation decreases money velocity, people tend to hoard instead of spending and spending is crucial to the growth of GDP.

I am financial manager and I am forex trader. I can see the fundamentals of fiat and I can see the trend when it has one reason; instead BTC doesnエt fundamentals, up and down as a casino.

One reason to hold BTC is inflation, but as the gold, the inflation is falling, then, the gold price is down

One reason why BTC up and down sharply is because there little amount in the market. I mean, is easy to move the price.

 
chrispap95
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July 31, 2015, 03:18:55 PM

Actually that is the biggest problem with using technical analysis on BTC to predict the future price fluctuations, the lack of targeted liquidity on the market. For example, when you trade EURUSD you are not excepting huge movements of the price due to the presence of the Fed and the ECB which can intervene whenever they want and stabilize the currency by buying.

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painlord2k
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August 02, 2015, 10:53:42 PM

Deflation is worse than inflation. Look at Japan. Deflation decreases money velocity, people tend to hoard instead of spending and spending is crucial to the growth of GDP.

I am financial manager and I am forex trader. I can see the fundamentals of fiat and I can see the trend when it has one reason; instead BTC doesnエt fundamentals, up and down as a casino.

One reason to hold BTC is inflation, but as the gold, the inflation is falling, then, the gold price is down

One reason why BTC up and down sharply is because there little amount in the market. I mean, is easy to move the price.


Define inflation.
Price inflation is down? In what classes of investments? Houses? Stock? Bonds? Commodities?
Money Base inflation is down? I have charts showing the exact opposite and they are drawn using Fed and ECB data (I dare not to look at the BoJ data).

lady Royal
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August 04, 2015, 03:52:51 PM




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 20BTC to 10BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10BTC to 20BTC!

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.





can u please explain me how the prices of bitcoin rise and fall..??
and how trading effect it...
as i have some exp in trading according to which there are trends of buyers /sellers .. the prices of currency only fall/rise  in some exceptional case...

he already explained it, he said that bitcoin prices goes up or down by means of how many coins that buyers bought. and also depends on market price.

okay .. i understand .. may be that time my mind dont understand it.. u clear my ambiguity by telling in easy way ...
thanx  Smiley

johnyj
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August 07, 2015, 02:12:31 PM

Deflation is worse than inflation. Look at Japan. Deflation decreases money velocity, people tend to hoard instead of spending and spending is crucial to the growth of GDP.

I am financial manager and I am forex trader. I can see the fundamentals of fiat and I can see the trend when it has one reason; instead BTC doesnエt fundamentals, up and down as a casino.

One reason to hold BTC is inflation, but as the gold, the inflation is falling, then, the gold price is down

One reason why BTC up and down sharply is because there little amount in the market. I mean, is easy to move the price.

 

I'm curious, what is the fundamentals of fiat? Fear? Violence? Ignorance?  Wink

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August 11, 2015, 09:08:16 AM




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 20BTC to 10BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10BTC to 20BTC!

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.





can u please explain me how the prices of bitcoin rise and fall..??
and how trading effect it...
as i have some exp in trading according to which there are trends of buyers /sellers .. the prices of currency only fall/rise  in some exceptional case...

he already explained it, he said that bitcoin prices goes up or down by means of how many coins that buyers bought. and also depends on market price.

okay .. i understand .. may be that time my mind dont understand it.. u clear my ambiguity by telling in easy way ...
thanx  Smiley
its ok. just understand what they say and what they mean to say, and don't judge quickly and don't take too much seriously what they say wrong things.

andysbizz
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August 19, 2015, 08:19:50 AM

Excellent post! Very interesting and informative  Smiley
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