Inflation and Deflation of Price and Money Supply

[Onews1990]

I am inclined to think I can employ my own brain for deriving the meaning of this word from the context. I suppose I’m quite capable of it. Here people do not accept this owing to something some monetarist once expressed that was wrongly attributed to an austrian.

[1713950623]

1713950623

[1713950623]

1713950623

[1713950623]

1713950623

[1713950623]

1713950623

[1713950623]

1713950623

[Signiel]

The appropriate term would not be inflation / deflation, economically speaking that is a much more complex term than what is stated in this post. Here the law of the market is easily verifiable. Offer / Demand, which is what is currently affecting the price of Bitcoin and will certainly continue to affect the price in a positive way when it increasingly approaches the maximum number of Bitcoins issued.

[Onews1990]

Yet, this hateful money system with all its faults has been immensely prosperous. We all know that for the last several centuries it has been used worldwide.

[Ejanend]

wow love you,thanks

The terminologies are defines in a right way but this is something very common in the business world and in the market. The answer tho the question is that the prices of thr Bitcoin is determined by the speculation as well as by the market forces. These are the two basic determinants. Besides exchange rates have their own criteria for the expected return they sit for.

[Onews1990]

In fact, eventually the bank is merely to comply with its mean reserve requirement. It just must own the 900$ when somebody else pays the check, if it isn’t at the same bank.

[CoinCodex]

This could be good for blockchain to become more legit, but we know governments are also very good at messing things up sometimes...
https://coincodex.com/article/1514/22-european-countries-form-blockchain-partnership/

[hirozaki faraday]

It's a percentage. It could be calculated and plotted in discrete yearly steps, but this chart shows the instantaneous (i.e., continuous) rate of inflation. "Annualized" just means that the rates are expressed at each point on the curve as though that rate of inflation were constant for a whole year and the money supply at the end of that year were compared to that at the beginning of the year. Inflation is usually expressed as an annualized rate. When you hear that the Federal Reserve is targeting an inflation rate of 2%, that's an annualized rate.

[Onews1990]

You’re quite right, but as far as economics is concerned we are always to be accurate and shrewd in our presumptions and choices, for rather obvious reasons, I should say.

[Infectedlogin]

I read the first message and was amazed. Price bitcoin from 10 to 20 bucks. Only then I saw the date of publication. Give me back my 2013 year... cry

[renbucs]

The price of a bitcoin is determined by supply and demand. When demand for bitcoins increases, the price increases, and when demand falls, the price falls. There is only a limited number of bitcoins in circulation and new bitcoins are created at a predictable and decreasing rate, which means that demand must follow this level of inflation to keep the price stable. Because Bitcoin is still a relatively small market compared to what it could be, it doesn't take significant amounts of money to move the market price up or down, and thus the price of a bitcoin is still very volatile.

[Nadirbil]

Talented people write simply and clearly, including about the breakthrough things in science. Your fabrications are very difficult to understand and do not bear practical application. They're powdering their brains.

[CoolSkeleton]

As the american dollar's value is increasing i think btc will decrease as both cannot go up, one currency's appreciation in most cases causes depreciation to the other coin. But i prefear to look at eth value to every currency

[hejioei]

Great thread, I have learned a lot! Thank you very much thefiniteidea!

[onyeunoadiosere]

A well analyzed topic thoroughly insightful 

[rumaysho]

Good analysis sir. I learned a lot from you, thank you for sharing knowledge with us.
In my opinion, if bitcoin supply increases, the bitcoin price will automatically decrease.
thanks.

[stolik1997]

This post made me return to my second year of Bachelor studies 
The thing described in the post is more likely about monetary inflation. But with goods there are only two types of inflation - demand inflation ans supply inflation. And in this case monetary inflation is dedicated to supply inflation (because costs rise up as many of them are closely connected to import). Goods inflation is also often caused by higher expectations, but it is related to demand inflation (as people expect inflation or deflation). This works the same with goods that could be bought with BTC.

Hope I clearly shared my thoughts, i'm not a native English speaker:)

[alex6464]

Good explanation about bitcoin in terms of inflation and deflation.
If the money supply expands, we get inflation, if it contracts, we get deflation. Everything is simple

[Dark_Felix]

Value of a store of value  depends of various elements
- Aceptance
- Good and services which can de acquired
- expectations about future prices

[Dark_Felix]

It's a percentage. It could be calculated and plotted in discrete yearly steps, but this chart shows the instantaneous (i.e., continuous) rate of inflation. "Annualized" just means that the rates are expressed at each point on the curve as though that rate of inflation were constant for a whole year and the money supply at the end of that year were compared to that at the beginning of the year. Inflation is usually expressed as an annualized rate. When you hear that the Federal Reserve is targeting an inflation rate of 2%, that's an annualized rate.

[JynlKi]

Thank you very much
 I do not know the exact supply and demand. Sure, we can try and synthesize data from all trading floors, but we will never accurate because there is no exchange that can be counted for (OTC). Interestingly, we know the rate of MoneySupply and we know the exchange rate. From there, we can determine the true value of Bitcoin by multiplying only by two factors; A kind of view adjusts the inflation of the currency.