Inflation and Deflation of Price and Money Supply

[JonathanCoper]

Why do a lot of people go for bitcoin when these, too, go under inflation and deflation of price and money supply?

What is the difference? I really don't get why people are crazy about bitcoin.  Huh

[AsianNapoleon]

Within the paradigm Quantity Theory of Money (QTM) framework, inflation is related to changes in the money supply, but this framework has been seriously challenged and cannot be taken at face value. If you plot a consumer price index for a particular country with the respective money aggregate over time, you’ll see that they are unrelated. However, QTM defenders say that the inflation is just delayed, for an unspecified period of time… empiricists are waiting for an inflationary response(or lack thereof) to expanding the money supply in 2008 in the US.

There is a handful of articles in the literature reviewing the instance of Quantitative Easing (QE) during the Great Recession and the apparent lack of impact on inflation, not supporting the QTM. Other frameworks attribute inflation to demand-pull and cost-push factors. All of this is good for further reading as it’s certainly a controversy in macroeconomics.

[jeraldskie11]

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

[Azariel]

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally.

[cryptofonia]

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally.

I guess it's more important not the quantity of money but its velocity. The same is relevant for crypto as well: if we may see crazy speed of number of transactions following the instant mode of these operations one may predict that cryptocurrencies may take over the world financial system. What do you think?

[Azariel]

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally.

I guess it's more important not the quantity of money but its velocity. The same is relevant for crypto as well: if we may see crazy speed of number of transactions following the instant mode of these operations one may predict that cryptocurrencies may take over the world financial system. What do you think?

I think that new blockchains that we already have allows cryptocurrencies to replace existing financial giants such as Visa and Mastercard, but there is a problem with regulations and maintaining existing government system. At the moment we don't have a working framework which will allow us to build crypto-based economies and of course, there is the question about the richest people and governments, a lot of them don't want to implement cryptocurrencies for a bunch of reasons. But in the near future, I think there is a possibility that we will move forward to the crypto-based economies, especially in developing countries.

[Ibrahim 2020]

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).

[arikmont]

Thank you very much for sharing this very useful information, I am very happy to have found this information that I have been looking for.
this source

[Onews1990]

Nowadays it is quite a probllem, because the emission rate is stable all the time and it is hard to modify it so we need to work harder if we want to make it happen. But manipiation definetly has place in our society.

[Cryptomania098]

NInflation this is the constant increase in price of goods services in an economic over times at this time money looses it buying or purchasing power at this time more unit of currency goes out to purchasing small unit goods.

Deflation this is the constant decrease in prices of goods and services in an economic over time, at this time money gain it buying or purchasing power at this time less unit of currency goes out for it purchasing more goods and services

[fortnite]

It depends where you put boundary between responsible saving and selfish hoarding. And where you put boundary between "only the best goods and investments should survive" and "economy and investment should be stimulated by gradually destroying value of people's money (bitcoins) and forcing them to spend and support consumption"...

[Onews1990]

I am sure about the statement that the crypto currency market can have price inflation and that comes from an unequal distribution of bitcoin around the world. Some people accumulated so much of it that if one day they decide to sell it all we will have the inflation in the market right away.

[Bros_3]

Now, a days as we all know that the price of cryptocuurencies falls day by day due to the fall in the demand of Cryptocurrncies. As according to the experts or forecasting the price of BTC can be fall upto $6000 and in the month of july the price may be rises.

[MCVXYZ]

NInflation this is the constant increase in price of goods services in an economic over times at this time money looses it buying or purchasing power at this time more unit of currency goes out to purchasing small unit goods.

Deflation this is the constant decrease in prices of goods and services in an economic over time, at this time money gain it buying or purchasing power at this time less unit of currency goes out for it purchasing more goods and services

In additional there is one more interesting issue related to deflation and inflation,In particular,the boundary,the boundary between inflation and deflation,which  is price stability,price stability occurs when the average level of prices is moving neither up nor down,which is measured by a price index.
What about inflation, I think its just a phenemonon that all counties experience.Sometimes I wonder why traders here are scared about inflation and deflation,Its just a natural process in global economy or even in regional economy.Anyway very interesting issue, I will be grateful if i see topics like this.

[pillairahul33]

Inflation is one of the biggest threat for any country. There used to be a time when BTC was considered to be supreme in an inflationery situation. ut after the entry of cartels in the market everything ended. But for an extend inflation and deflation are good for balance of payment crisis.

[rakibpintu]

price will be growth and growth you knew it whether bitcoin price too down when price value of like $3000 you can see the price increasing but still here one of place but we expect july month it can be increase. and crptomarket down so everything fall in down. inflation of price or deflation price depends on crptomarket.

[Dayan1]

price will be growth and growth you knew it whether bitcoin price too down when price value of like $3000 you can see the price increasing but still here one of place but we expect july month it can be increase. and crptomarket down so everything fall in down. inflation of price or deflation price depends on crptomarket.

The reason why we invest on any other kinds of investment such as crypto currency is because we are after for capital gain ,. My point here is the inflation will always be there and our country makes a way to fight it but still it is not enough , so investment  are here to fight inflation , which is around 6 percent. Bitcoin for the past few years grew up to more than one thousand percent so this is far  better than any other kinds of investment, but because of the high return it is also risky so be smart in investing in bitcoin .

[PrintMule]

Inflation is constantly increasing in the overall price level. The rapid rise in the price level is called hyperinflation. The constant decrease in the price level is called deflation. Deflation also has negative effects on the economy like inflation. A deflationary economy does not want to spend or spend on future periods because of the continuous decrease in the prices of individuals who are expecting prices to fall further. In this case, the inadequacy of demand leads to the production of the production. Stagnation occurs in the economy. The prices of goods and services in economies are constantly changing. However, the fact that prices generally tend to increase has made inflation an important phenomenon.

I do not think people will invest again easily unless the imbalances in the bitcoin price levels are over. the whales we are probable are also lost. I think we need some other chance from the economy, as we can summit again in all these factors.

[lessaul]

It is very interesting your article, there is not a bad way to express it, it is well defined, currently the economy is not very stable.

[Rono]

Inflation means when bitcoin price goes down and Deflation is when the price is going up. There is an inverse relationship between this two Terms Inflation and deflation. In this two Terms price value is dependent on this Changes of Inflation and Deflation. For example When the BTC price Is 7 Dollar to 14 Dollar the price of good services goes down into 14$ to 7$. The BTC price Is Goes down and up Is based on the Exchange rate or market price which is fixed by the buyers and sellers or traders. When buyers buy the BTC so that Capital of a market is getting short and the price is reached high and on the other hand the converse create the price gets low.