Bitcoin Forum
November 18, 2017, 03:41:48 AM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: « 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 [39] 40 41 42 43 44 »
  Print  
Author Topic: Inflation and Deflation of Price and Money Supply  (Read 505489 times)
FUKT
Sr. Member
****
Offline Offline

Activity: 429



View Profile
August 15, 2017, 04:28:10 PM
 #761

Which is potentially the most profitable altcoin in your opinion? Could be that investing in them is a more profitable strategy than mining? Sure, owning mining rigs, you can switch to mining another alts if one of them fails, but the difficulty rises quite fast on all of them, and hardware becomes obsolete in a matter of months. On other hand, investing in a basket of alts, rather than in mining equipment can prove more profitable and trouble free (as there won't be no hassle with installing and setting it).
1510976508
Hero Member
*
Offline Offline

Posts: 1510976508

View Profile Personal Message (Offline)

Ignore
1510976508
Reply with quote  #2

1510976508
Report to moderator
Coinlancer is Disrupting the Freelance marketplace!
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
karisiak123
Full Member
***
Offline Offline

Activity: 125



View Profile
August 21, 2017, 05:24:27 AM
 #762

A very interesting case does not exist other than this, it will not fully represent the current monetary system (fiat). By carefully observing the system, you may change the system as directed.

usuksobad
Member
**
Offline Offline

Activity: 97


View Profile
August 21, 2017, 06:56:08 PM
 #763

Well imo OmiseGo for the win.
slashz9
Full Member
***
Offline Offline

Activity: 126



View Profile
August 21, 2017, 07:11:54 PM
 #764

Good post.
Rising prices and price reductions, yes that is what happens when the sale value of a good thing rises or falls, but it will always happen when the price of an item decreases then the price of other goods will rise, it happens not without reason because from time to time trend Everyone is different, whether it is economic factors, clothing, vehicles, electronics and others.
Therefore inflation and deflation will continue to occur from year to year.
So that determines the bitcoin price, may be true as you say because of the increase and decrease in the price of goods.

██▐        DROP DECK          Drop Deck Crowdsale      November 21st, 2017          WHITEPAPER      ▌██
Revolutionize Cross-Border Business Funding  |  The First to Complement A.I. with Blockchain
█▄          FACEBOOK          SLACK         TWITTER         ANN THREAD         MEDIUM         TELEGRAM          ▄█
dzshi
Newbie
*
Offline Offline

Activity: 4


View Profile
August 23, 2017, 07:32:03 AM
 #765

I'm wondering how alt-coins with unlimited token issuance mechanisms factor into the overall macroeconomic equation. Wouldn't they be essentially the same as central banks, controlling the inflation rates and issuance of the currency?
PizzaBTC
Sr. Member
****
Offline Offline

Activity: 393



View Profile
August 23, 2017, 12:55:28 PM
 #766

The rate at which bitcoin rises and falls is one of a kind and that has been bothering me for sometime. Bitcoin could lose up to $300 of its value in just a day and it can also gain more than that in a day.

ZIGGER      ███
  ███ ███
█ ███ ███
█ ███ ███
     ███
███ ███
███ ███
  ███ ███
███ ███
███ ███
███     █
███ ███
███
A Decentralized Crypto Marketplace
____ for Localized Shopping ____
[|FACEBOOK
TWITTER
SLACK
|ICO  ▶  13th November 2017
GET YOUR 40% BONUS
IN FIRST 24 HOURS!
]      ███
  ███ ███
█ ███ ███
█ ███ ███
     ███
███ ███
███ ███
  ███ ███
███ ███
███ ███
███     █
███ ███
███
jijuevyiyn63011
Full Member
***
Offline Offline

Activity: 132


View Profile
August 24, 2017, 07:31:33 PM
 #767

A coin with 0% inflation generates a problem: the total amount of product in the society is increasing, but there are no enough coins to "match" them. As currency gets more valuable, people will hoard it instead of investing, things will get problematic.

████→→       ● DeepOnion                                                                       ✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯ 
████→→       ● Tor integrated, 100% anonymous!                                       Get Your FREE Coins NOW!     
████→→       ● Free Airdrop! (No ICO, No Crowdfund)                       ✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯✯
marcbitcoins
Member
**
Offline Offline

Activity: 112


View Profile
August 25, 2017, 10:52:59 PM
 #768

Good post.
Rising prices and price reductions, yes that is what happens when the sale value of a good thing rises or falls, but it will always happen when the price of an item decreases then the price of other goods will rise, it happens not without reason because from time to time trend Everyone is different, whether it is economic factors, clothing, vehicles, electronics and others.
Therefore inflation and deflation will continue to occur from year to year.
So that determines the bitcoin price, may be true as you say because of the increase and decrease in the price of goods.

This rise up and go down are already a traditional process. In trading when the supply is low then in demand the price of that supply will rise up but if the supply are very high then in low demand the price will going down naturally. These supply and demand system chain are mostly common in trading in which hoarding technique is commonly applied to all goods in the market and now is being applied to bitcoin. Thats the fact in trading

<<|  ARToken by CAPPASITY  |>>
> Decentralized AR/VR Ecosystem for 3D Content Exchange <
> Follow Us:  facebook | twitter | linkedin | telegram | youtube | slack | google+ <
edlas101
Newbie
*
Offline Offline

Activity: 16


View Profile
August 26, 2017, 11:09:00 AM
 #769

While I despise them, I see the genius of the Federal Reserve system.

There's genius in stealing?  Roll Eyes
 
why dont each country just use their own federal reserved so that no one will be poor..hahaha if all country well have one federal reserved in one bank then there would be equal sharing of wealth,  right or wrong?
Canday
Member
**
Offline Offline

Activity: 69


View Profile
August 30, 2017, 09:18:38 PM
 #770

Oooh Yay!  Let us all be like Plato and fake that words and phrases have objective meanings so we can argue about them without having ever acquiring anywhere!There are lots of people brainwashed or dishonest ample to misuse conditions in a way that makes it hard to comprehend issues.  An argument of what the terms indicate only implies that you are a slave to an utterance employing these words, and so you should get others to use them the way you comprehend them.  That looks variety of foolish and pointless (and cultish and spiritual and educational).  What they mean is crucial if you want to comprehend a claim created making use of them, but whoever manufactured the assert can just substitute them with other phrases that are simpler (and often far more numerous).
badger88
Newbie
*
Offline Offline

Activity: 22


View Profile
August 30, 2017, 11:50:23 PM
 #771

Which is potentially the most profitable altcoin in your opinion? Could be that investing in them is a more profitable strategy than mining? Sure, owning mining rigs, you can switch to mining another alts if one of them fails, but the difficulty rises quite fast on all of them, and hardware becomes obsolete in a matter of months. On other hand, investing in a basket of alts, rather than in mining equipment can prove more profitable and trouble free (as there won't be no hassle with installing and setting it).

EMD looks like it will run out fast, only 31 mil coins
 Smiley Smiley

Other coins are easier to pump and dump when they are mined..
You can mine other coins and change it to EMD .... peak EMD - peak inflation  Tongue
EGH.IO
Newbie
*
Offline Offline

Activity: 5


View Profile
September 03, 2017, 05:59:41 PM
 #772

Да просто скорость роста битка слегка пугает
И что бы там кейсианцы не говорили золото это деньги а биток вроде как нет

INVALID BBCODE: close of unopened tag in table (1)
ikhwan88
Newbie
*
Offline Offline

Activity: 11

ikhwan@crowz


View Profile WWW
September 04, 2017, 04:46:29 PM
 #773

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 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.



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! Wink


nice seem to be right and meaningful also helpful for me as a newbie to cryptocurrency :-)

hashflare.io and pool.bitcoin.com
TheGreatPython
Full Member
***
Offline Offline

Activity: 210



View Profile
September 05, 2017, 10:00:59 AM
 #774

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 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.



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! Wink
Involving
commodities in the same sense in economics as inflation is near the impossible.
Right now digital currencies are considered Commodities that's the easiest way
to consider it from now until at least another year from now. It's just going
to get really confusing if you try to manipulate that as a cash flow versus
inflation index.

fanou1988
Newbie
*
Offline Offline

Activity: 14


View Profile
September 09, 2017, 09:11:01 PM
 #775

If said "In inflationary system like we have today it's suggested that 2% inflation is "healthy" for the economy." Huh Huh Huh
zwiggel
Sr. Member
****
Offline Offline

Activity: 336



View Profile
September 10, 2017, 01:39:54 PM
 #776

If said "In inflationary system like we have today it's suggested that 2% inflation is "healthy" for the economy." Huh Huh Huh
I agree on this. The economy around the world has inflation. Inflation also depends on the structure of the economy. The price of low-level tradeoffs in unemployment is rising, so a 2% inflation rate is justified.

██
█║█
║║║
║║║
█║█
██

                    ▄██▄
                  ▄██████▄
                ▄██████████
              ▄██████████▀   ▄▄
            ▄██████████▀   ▄████▄
          ▄██████████▀    ████████▄
         ██████████▀      ▀████████
         ▀███████▀   ▄███▄  ▀████▀   ▄█▄
    ▄███▄  ▀███▀   ▄███████▄  ▀▀   ▄█████▄
  ▄███████▄      ▄██████████     ▄█████████
  █████████    ▄██████████▀    ▄██████████▀
   ▀█████▀   ▄██████████▀    ▄██████████▀
     ▀▀▀   ▄██████████▀    ▄██████████▀
          ██████████▀    ▄██████████▀
          ▀███████▀      █████████▀
            ▀███▀   ▄██▄  ▀█████▀
                  ▄██████▄  ▀▀▀
                  █████████
                   ▀█████▀
                     ▀▀▀
e i d o o
██


                    ▄██▄
                  ▄██████▄
                ▄██████████
              ▄██████████▀   ▄▄
            ▄██████████▀   ▄████▄
          ▄██████████▀    ████████▄
         ██████████▀      ▀████████
         ▀███████▀   ▄███▄  ▀████▀   ▄█▄
    ▄███▄  ▀███▀   ▄███████▄  ▀▀   ▄█████▄
  ▄███████▄      ▄██████████     ▄█████████
  █████████    ▄██████████▀    ▄██████████▀
   ▀█████▀   ▄██████████▀    ▄██████████▀
     ▀▀▀   ▄██████████▀    ▄██████████▀
          ██████████▀    ▄██████████▀
          ▀███████▀      █████████▀
            ▀███▀   ▄██▄  ▀█████▀
                  ▄██████▄  ▀▀▀
                  █████████
                   ▀█████▀
                     ▀▀▀
██
█║█
║║║
║║║
█║█
██
rupeeteam
Jr. Member
*
Offline Offline

Activity: 42


View Profile
September 14, 2017, 02:43:06 AM
 #777

Can governments opt for deflation? Is that good or bad for economy?
Babita2810
Newbie
*
Offline Offline

Activity: 1


View Profile
September 14, 2017, 04:00:52 AM
 #778

Price inflation- It is defined as the value of the goods is decreased if the price of bitcoin increases. The annulised inflation rate in India was 3.8% till august 2015. Most of the people used WPI i.e wholesale price index for all the commodities. But now-a-days people use CPI i.e consumer price index to measure the rate in India.

Price deflation-It is defined as the value of goods when increased if the price of bitcoin decreases. It is the decrease in the price of goods and services. Deflation occurs when real value of inflation decreases to 0% that is negative. Therefore deflation increases the real value of money and regional economy. This allows one to buy more goods and services more with same amount of money.
BitcoinMarketer39
Member
**
Offline Offline

Activity: 70


View Profile
September 14, 2017, 11:57:56 PM
 #779

yes its always happening in the market..inflation and deflation of price and money supply..maybe of lack of goods some manufacturers companies are not able to produce the volume of the product supply..

♦♦♦     CLOUT     ♦♦♦     MEDIA DECENTRALISED     ♦♦♦     CLOUT     ♦♦♦
♦     ANN Thread     ♦♦♦     ICO start on 17th of November     ♦♦♦     WhitePaper     ♦
♦  Discord  ♦  Facebook  ♦  Medium  ♦  Telegram  ♦  Twitter  ♦
[/center]
Aayushi
Newbie
*
Offline Offline

Activity: 9


View Profile
September 15, 2017, 12:10:07 PM
 #780

Inflation- Price inflation refers to the decrease in the price of goods if bitcoin price increases. It is now a days measured in CPI i.e. Customer price index . Earlier people used WPI i.e. Wholesale price index to measure the commodities. It was 3.8% in august 2015. Inflation represents the structure of economy.

Deflation-Price deflation refers to the increase in the price of goofs if bitcoin price decreases. It occurs when the real value of inflation decreases to 0%. Therefore deflation increases the real value of money and even the regional economy. This allows a person to buy more goods in same amount of money.
There is jnverse relation in price and value of the product.
Pages: « 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 [39] 40 41 42 43 44 »
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!