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Author Topic: Inflation and Deflation of Price and Money Supply  (Read 507255 times)
ward124
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July 08, 2017, 07:47:45 AM

How can a digital simulation of money become more illusory than it already is? Simulated money will always be an illusion, but because it is a simulation we do not have to accept the 'rules' coded into it as if they were the Ten Commandments. Instead, we can select the relevant sections of source code, hit the delete button, and start over.
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July 11, 2017, 01:28:22 AM

inflation and deflation of price of bitcoin i think this is the main cause of to attract the investor. because every investor want benefit. i think this is the main reason of uses of bitcoin. this is very effective for economy.
Inflation and deflation occur because of demand and which makes the demand is the user? The question is why do users want to buy bitcoins? And that's what makes bitcoin has a price and worth because users want bitcoin for them to use?

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July 12, 2017, 08:22:52 PM

The question is why do users want to buy bitcoins? And that's what makes bitcoin has a price and worth because users want bitcoin for them to use?

Because when demand goes up, so does the value. That's what makes BTC so interesting to me. It's pretty much the opposite of the valuations of most everything else in that when demand goes up, the price/value goes down.
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July 14, 2017, 03:08:59 PM

How i see now is simple btc gains value over the time with the speculation and trust but the fiat lose value related to the inflation and economic crisis.
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July 18, 2017, 02:55:10 PM

You have to stop a bit a consider trustworthiness. You can not have it, neither in real money regard nor costs. In case you by some methods make sense of how to do the abnormal regardless of its trouble, you pick up the structure static and no ground is possible, and you in like manner murder all danger. The wiping out of risk, without any other person changes the structure. So it is doubly unfathomable.

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July 19, 2017, 10:09:56 AM

Deflation/Inflation <=> Speculation. In this case. It is not predictable in the moment due to high fluctuations.

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July 19, 2017, 02:10:28 PM

Price Inflation is an increase in the price of a standardized good/service or a basket of goods/services over a specific period of time while deflation in price is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%.

Inflation of money supply is a sustained increase in the money supply of a country while deflation of money supply is just the opposite of it.
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July 19, 2017, 02:35:16 PM

Even people in Wall Street cant even read and predict the movement of bitcoin.  So inflation nor deflation affects the price movement of bitcoin. Its really how people see its value and adoption of the public to its use. Law of supply and demand comes on second.

babar123
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July 24, 2017, 11:21:27 PM

"The question is why do users want to buy bitcoins? And that's what makes bitcoin has a price and worth because users want bitcoin for them to use?"

All this is mostly a speculativ bubble, remember tulipomania, people buying alts and bitcoin hoping to sell it higher, would they buy it knowing the price would stagnate OR diminish ? the answer is certainly no
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July 27, 2017, 06:17:40 PM

ryptocurrency, there are two main types of ecosystems. Either a cryptocurrency is inflationary with new coins generated by mining or staking or it is deflationary. A lot of people claim bitcoin痴 deflationary status is a problem, and how minor inflation could alleviate these concerns. However, there are different aspects of either concept that need to be taken into account first.
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August 02, 2017, 12:54:26 PM

Many people want to buy bitcoin. Because bitcoin memamg is a highly valuable crypto currency. And this is very influential on the real currency. I think we can not predict the inflation problem and deflation of fiat currencies at this time. But it is expected that bitcoin will become the most expensive electronic currency. But the only problem is bitcoin is the electronic currency. So bitcoin will not be able to circulate as real as other fiat currencies. Bitcoin is not acceptable in some places that do not have access to buying and selling with bitcoin. All need technical to use bitcoin like fiat money

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August 02, 2017, 03:28:48 PM

If other currencies recognize inflation or decline in currency values, then Bitcoin only recognizes deflation, or reduces the production of Bitcoin that makes the value of Bitcoin increasingly uphill.
It's what makes many investors and stock players use Bitcoin as an asset to secure their finances.
So far many investors and countries are investing in investment funds into cryptocurrency companies and blockchain industries to improve Bitcoin infrastructure and services by looking at price deflation in the bitcoin.
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August 09, 2017, 07:14:48 AM

An inflection point is an event that results in a significant change in the progress of a company, industry, sector, economy or geopolitical situation and can be considered a turning point after which a dramatic change, with either positive or negative results, is expected to result change in price of money supply also term effective
Where the deflection in price Deflation occurs when too many goods are available or when there is not enough money circulating to purchase those goods.
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August 09, 2017, 04:15:34 PM

Digital Currency Exchange Rates and the Law of One Price

http://www.swiftcointalk.org/swiftcoin-discussion/digital-currency-exchange-rates-and-the-law-of-one-price/

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August 11, 2017, 12:13:45 PM


Does this things strongly depicts the state or status of the economy of a certain country? If it is significant change why do it have to go along with what you said deflection.  Can't it go as perfect as it should. In the case of bitcoin which area does it apply? Is it what you said 'inflection' or 'deflection'?
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August 11, 2017, 10:15:54 PM

One dynamic which is well-known but often remains unnoticed in the academic environment is that fiat currencies are inherently depreciative due to their debt-nature (they can appreciate or depreciate one against the other, but are bound to lose value altogether against real assets).

In a hypothetical world with constant demand, Bitcoin would also be depreciative until reaching the asymptotic number of 21 million. However, unlike fiat currencies, it would not be inherently depreciative thereafter.
In the real world, as demand for Bitcoin is variable, its value would:
a) Increase, if demand increased more than supply
b) Remain stable, if demand increased at the same rate as supply
c) Decrease, if demand was less than supply

Supply includes both existing and newly-minted coins offered to the market. Current saving rates on existing coins are relatively high and new bitcoins are minted at a rate of just 4% per year. Therefore supply is relatively low.
Demand is however significantly higher, which explains Bitcoin appreciation and the consequent deflationary trend.
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August 13, 2017, 01:57:03 PM

The concept of pre-inflation and deflation of price and money supply + DEMAND is very applicable to bitcoin (BTC) since it is under one economic policy and the money is still involved. It is somewhat reliable if you understand the paradigm is to be aware of whats happening in the bitcoin system.

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August 13, 2017, 11:28:17 PM

When comparing BTC to a traditional fiat currency, one should take the following into account:

   
  • Fiat Currency has attrition due to lost currency but that attrition is simple to rectify because you can just print more to replace it.
       BTC, also, has attrition but those lost coins can't be replaced and must be dragged around by the entire chain for ∞.

  This in of itself implies that the production and/or the increasing of decimal places will always have to outpace the attrition of BTC.

  •   Fiat Currency has no block chain bloat and no progressive cost of production of currency.
      BTC gets harder and harder to drag around with time. The cost of production is on a progressive scale. (cost more over time)

  This can be seen with rising rates for transaction fees, and the progressive scale in the size of the blockchain itself.

It is natural for transactions to be forgotten over time. Unfortunately, without a way of determining lost coins from saved coins, you can't prune the blockchain if even a way was developed to do so and maintain the cryptographic chain with confirmations.

If compared to a traditional currency, the Dollar, imagine if the first dollar ever created requires a ledger from every transaction that ever was done with it. The ledger would be very large indeed when multiplied by all dollars and their ledgers. If a dollar is out of circulation, one can assume it to be lost and print another without the need to verify it as lost or saved (under a mattress). If the dollar re-enters circulation in the future, you can decrease the supply to adjust properly for the new found forgotten dollar.

In Bitcoin, all "lost" coins must be assumed to be "saved" coins.

So when students, enthusiasts try to apply current tradition metrics to bitcoin, try to make a calculation that represents the differences. There is a difference and the same models won't apply.

How can you solve? Well, you do it the same way countries replace their currencies. After a period of time, you put out notice that BTC will transfer to BTC version2, and you need to transfer you money over or the old ones left behind will be useless.

The EU is the most recent example of this occurring when they switched to the Euro. French Francs, Italian Lire, etc... all switched to the Euro. Some believe they will be switching back. That will be interesting to watch.

The Bitcoin Central Bank:

  Well this is gray. The -core-dev would be the Board, the Miners would be the Reserve Banks controlling flow with 'fees'. It's gray, because if they all went away tomorrow, bitcoin could still work. The Dollar couldn't. Problem is that most end users would just drop out of the market.

Transaction Fees are a form of control, and Time is the punishment for not paying fees. There is a basic cost to fees tho, the actual cost of mining, but there also has to be a profit in mining too. So they have to take the Basic Cost + Profit Margin = Transaction Fee.  Collusion can lead to hefty fees.

I'm not saying that collusion is occurring but that it can occur and if done correctly no one would ever know.

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August 15, 2017, 06:07:45 AM

i`m also considering litecoin since bitcoins difficulty will skyrocket, hence some people will move to litecoin and therefor increasing its value
I agree to you, bitcoins difficulty will surely increase due to demand rate increasing as well therefore other coins that has lower value will soon have an increase in demand therefore increasing it's value .

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August 15, 2017, 03:56:44 PM

i`m also considering litecoin since bitcoins difficulty will skyrocket, hence some people will move to litecoin and therefor increasing its value
I agree to you, bitcoins difficulty will surely increase due to demand rate increasing as well therefore other coins that has lower value will soon have an increase in demand therefore increasing it's value .
Be sure to do your due diligence before choosing which alt coin you are switching to.  You are correct, with the difficulty being so high, BTC will eventually need to take action of some sort to stabilize it.

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