Inflation and Deflation of Price and Money Supply

[Dayan1]

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.

Inflation and deflation , theses are the things that happens on bitcoin or in any virtual currency , how ? bitcoin has an investor and each investor has a power to control the price of bitcoin , the price varies on demand and supply of a coin or bitcoin , if demand is high it means lower supply and the tendency for bitcoin's price is to go up , when demand is low , the supply is high , the bitcoin now lowers it's value . this is the basic concept here in bitcoin or virtual currency.

[Alekkborela]

Inflation and deflation are cause by the movement of every cents and any kind of money that is being used in the country , it circulates on much higher options that is being discussed to schools today

[oannejoannes]

The theory most discussed in the relationship between prices and the money supply is called the quantity theory of money. The quantity theory proposes the exchange value of money is determined like any other good, with supply and demand. The basic equation for the quantity theory, developed by American economist Irving Fisher, is expressed as: (total money supply) x (velocity of money) = (average price level) x (volume of economic transactions).

[tlanza]

Some variants of the quantity theory propose that inflation and deflation occur proportionately to increases or decreases in the supply of money. Empirical evidence has not demonstrated this, and most economists do not hold this view.

[acassandre]

A more-nuanced version of the quantity theory adds two caveats: New money has to actually circulate in the economy to cause inflation; and, inflation is relative, never absolute. In other words, prices tend to be higher than they otherwise would have been if more dollar bills are involved in economic transactions.

[Dillnoon]

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 .

You say very well. I agree with your point of view, this market has grown very fast, accompanied by the risk is not small. So we need to have the choice, the skill to invest, and the important thing is to be smart in investing in this market to achieve that goal.

[mandro]

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.

It's correct. I also think there should be another opportunity for the economy to push the market up, but the fact that market prices are also impacting inflation is not small. It is therefore hoped that there will be another opportunity for investors and businesses or individuals to believe in economic development.

[johny1512]

I dont know in which perspective you are talking about but what i know about inflation and deflation is that these two terms made me payable and i have lost 5000$ in this game i invested by watching inflation but sudden deflation cause me to lose my amount which I don’t think i will recover ever and i am unable to pay my loan may God help me please..

[MoneyTalksfrHK]

Basically, inflation is a claw back tax on your earnings, so you got double taxed - once when you get paid, then the Fed tax you again by continues inflation afterwards.

[jamoi5]

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.
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.

[jbfkasfaiew]

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?

[queenstella]

Deflation doesn’t always have the side effect of unemployment or even making the masses poorer. It all depends on the cause of the deflation.
Generally, the demand for money is measured by how much people are willing to pay to borrow it (i.e. interest rates). If inflation is high, interest rates will have to be higher to compensate for the loss of purchasing power.
inflation is a rise in the average price of goods over a period of time. The rate that prices increase is known as the inflation rate. Inflation happens either when prices go up or when it takes more money to buy the same items.

[recklessMe]

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.

Crypto economy is unstable, as for traditional economy - that one is steadily bad.

[gooddly]

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.

Crypto economy is unstable, as for traditional economy - that one is steadily bad.

Why compare it with the traditional economy? These are phenomena of different orders ..

[udonmez]

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.

Crypto economy is unstable, as for traditional economy - that one is steadily bad.

Why compare it with the traditional economy? These are phenomena of different orders ..

Most of the rules of traditional economy also work in cryto, so it is perfectly normal to compare them.

[UconBit]

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.

Crypto economy is unstable, as for traditional economy - that one is steadily bad.

Why compare it with the traditional economy? These are phenomena of different orders ..

Most of the rules of traditional economy also work in cryto, so it is perfectly normal to compare them.

You're right, they follow similar patterns. In fact, I'd even dare to say that crypto has more natural patterns than the real economy because it's not being manipulated by arbitrary forces. No central banks printing money, jawboning currencies, or fiddling with interest rates. Just a system of exchange the way it should work.

Sure, there are speculators that drive it in every which direction, but that's just the truth for anything novel in human existence. We love new ideas, so we all jump on them at once until they're so overcrowded that we all fall off. Isn't it fun!

[mattmcegg]

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.

Crypto economy is unstable, as for traditional economy - that one is steadily bad.

Why compare it with the traditional economy? These are phenomena of different orders ..

Most of the rules of traditional economy also work in cryto, so it is perfectly normal to compare them.

You're right, they follow similar patterns. In fact, I'd even dare to say that crypto has more natural patterns than the real economy because it's not being manipulated by arbitrary forces. No central banks printing money, jawboning currencies, or fiddling with interest rates. Just a system of exchange the way it should work.

Sure, there are speculators that drive it in every which direction, but that's just the truth for anything novel in human existence. We love new ideas, so we all jump on them at once until they're so overcrowded that we all fall off. Isn't it fun!

Absolutely true about Bitcoin being more natural. That's why we see fractal patterns in Bitcoin.

[Ryo1989]

Hi,

I think this topic should be more talked about.
I have some questions:

• What is better for the economy to grow? inflation or dilation or maybe a stable coin?
• Do you know of projects with "smart" Money Supply?
• What would be the best for a medium of exchange? FIAT always got inflation right?

[jbfkasfaiew]

Hi,

I think this topic should be more talked about.
I have some questions:

• What is better for the economy to grow? inflation or dilation or maybe a stable coin?
• Do you know of projects with "smart" Money Supply?
• What would be the best for a medium of exchange? FIAT always got inflation right?

You raised so many questions.
I can not answer all that help you
Sorry

[Ryo1989]

Hi,

I think this topic should be more talked about.
I have some questions:

• What is better for the economy to grow? inflation or dilation or maybe a stable coin?
• Do you know of projects with "smart" Money Supply?
• What would be the best for a medium of exchange? FIAT always got inflation right?

You raised so many questions.
I can not answer all that help you
Sorry

any body else? haha