Bitcoin Forum
September 22, 2018, 08:28:34 AM *
News: ♦♦ New info! Bitcoin Core users absolutely must upgrade to previously-announced 0.16.3 [Torrent]. All Bitcoin users should temporarily trust confirmations slightly less. More info.
 
   Home   Help Search Donate Login Register  
Pages: « 1 ... 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 45 46 47 48 49 50 51 52 53 54 55 56 57 58 [59] 60 »
  Print  
Author Topic: Inflation and Deflation of Price and Money Supply  (Read 524276 times)
cok_elat
Full Member
***
Offline Offline

Activity: 280
Merit: 100



View Profile
August 13, 2018, 08:41:12 AM

Inflation and deflation have negative social and economic consequences, so the States are actively fighting these processes.

The method of "expensive money"is used to fight inflation. Monetary authorities are directing their efforts to reduce the volume of money supply. Against inflation is applied the increase in taxes, reduction in lending, reduction of government spending and increase in sales of government securities.

To combat deflation, reverse measures are taken.

do not forget to include external factors such as the benchmark interest rate from the Fed which also affects the monetary policy of a country must reduce or increase the amount of money in circulation

1537604914
Hero Member
*
Offline Offline

Posts: 1537604914

View Profile Personal Message (Offline)

Ignore
1537604914
Reply with quote  #2

1537604914
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
Antonio_Scott
Newbie
*
Offline Offline

Activity: 20
Merit: 0


View Profile
August 13, 2018, 02:59:38 PM

This is an interesting topic, and one that directly affects the value of bitcoin. Its interesting to get a deeper understanding of the intricacies of inflation and deflation of the whole system including the money supply.  of course it can have a negative or positive affect on the investor, thats why its is important to take all of this into account when investing not only in bitcoin but also all other commodities that are available on the market.
Cavanho27
Newbie
*
Offline Offline

Activity: 68
Merit: 0


View Profile
August 15, 2018, 03:48:20 PM

You all may be very interested in my new Federal Reserve of WIP coin, which is centralized and by fiat.  There is a discussion thread in here as well. Angry Angry
lyn11
Jr. Member
*
Offline Offline

Activity: 41
Merit: 1


View Profile
August 16, 2018, 03:47:59 PM

Inflation is caused when goods and services are in high demand, creating a drop in availability. Supplies can decrease for many reasons: A natural disaster can wipe out a food crop; a housing boom can exhaust building supplies, etc.
Deflation occurs when too many goods are available or when there is not enough money circulating to purchase those goods. For instance, if a particular type of car becomes highly popular, other manufacturers start to make a similar vehicle to compete.
Price depends on the demand of the product for example if the people really need that product the price may increase.
Money supply depends only on the customers of the products in that specific market.

▀▀▀▀▀▀▀▀▀▀▀▀▀▀
MOOLYACOIN.IO ║ World's 1st Comprehensive Global Digital Startup Ecosystem (https://www.moolyacoin.io/)
▄▄▄▄▄
criza
Full Member
***
Offline Offline

Activity: 340
Merit: 102



View Profile
August 17, 2018, 12:26:10 AM

Relatively, the value of the Bitcoin and the price of the products and/or services are inversely proportional to each other; resulting to price inflation or price deflation. Price inflation simply means that everytime the value of Bitcoin decreases, the price of the products and/or services increases. On the other hand, what happens in price deflation is the opposite of what happens to price inflation. Price deflation means that if the value of Bitcoin increases, the price of products and/or services definitely decreases. All of these price inflation and deflation varies upon the value of Bitcoin. Therefore, the rate of change of the price depends on the value of Bitcoin. However, this rate of change in the price is not only limited alone on how the value of the Bitcoin varies as there are other factors that is considered to be the cause of such change.

shittypro
Newbie
*
Offline Offline

Activity: 84
Merit: 0


View Profile
August 21, 2018, 10:52:44 PM

I'm enjoying the different points of view that have already shared in this threads , will help discussion very rich with vital information . Just like most field of endeavor is bound to different school's of thought all of which help to advance the course of knowledge . Being student economics, I'm just want to know how it works the concept of this inflation and deflation in practical terms that help to improve the economy of nations and don't limit ourselves to definition and Symantec terms
kniheant
Newbie
*
Offline Offline

Activity: 182
Merit: 0


View Profile
August 24, 2018, 12:08:12 PM

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稚 at the same banks.
Hasbro27
Full Member
***
Offline Offline

Activity: 336
Merit: 100



View Profile
August 24, 2018, 04:54:52 PM

the information you provide is very good, and the explanation is easy to understand, and very useful for determining or predicting price movements in the market, especially for beginners like me who learn to trade cypto currency

IriskaLate
Jr. Member
*
Offline Offline

Activity: 308
Merit: 1

SOOM 4th Blockchain's innovative


View Profile
August 25, 2018, 06:51:32 PM

I think that there will be a natural growth of bitcoin and highly dependent currencies. The price is formed as demand for it - the demand can depend on the news around the crypto currency. This has already been-positive news (for example, the adoption by some country of the law on the legalization of crypto-currency transactions) and negative (ban on trade, etc.) are heading the course.

▄▀▀▄ ▄▀▀▄ ▄▀▀▄ █▄  ▄█
▀▀▄▄ █    █ █    █ █  ▀  █  SOOM Blockchain
▀▄▄▀ ▀▄▄▀ ▀▄▄▀ █      █  http://www.fourthblockchain.org/index.html
endaiin
Full Member
***
Offline Offline

Activity: 364
Merit: 100

Blockchain Lover


View Profile
August 27, 2018, 02:20:31 AM

Economic down because centralized system, now time for crypto to fix that mistake, crypto is the future...

▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
WORLDOPOLY ◈     ▐   FACEBOOKANN THREADTELEGRAM TWITTER INSTAGRAM           ▌    JOIN OUR ICO  26 Feb-21 Jun
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
Watsmaker
Newbie
*
Offline Offline

Activity: 4
Merit: 0


View Profile
August 28, 2018, 05:27:54 PM

If I'm an intermediate and all values of the apple are static, then of course I get part of the value creation.

But you can also see this differently.

Suppose that yesterday, I really wanted to possess an apple.  I bought an apple for 6 eggs, and I valued it 10 eggs.  So I had a value creation of 4 eggs for that.

However, today I realize that I don't like having an apple any more.  I value the apple today only 2 eggs.   I now sell that apple to you for 6 eggs.  I have AGAIN a value creation today of 4 eggs by this act.

If you have valued an apple all the time 8 eggs, then you could have bought it directly yesterday for 6 eggs (market price) and gained 2 eggs of value.  When you buy the apple from me you also pay 6 eggs, and you gain 2 eggs of value.

So if you directly buy the apple, you win 2 eggs and I, nothing.  "total gain 2 eggs"

If I buy the apple, and then sell it to you, I win 4 eggs yesterday, 4 eggs today, and you win 2 eggs in value.  "total gain 10 eggs".

You can say: yes, but your change in mood made you LOOSE 8 eggs.  No.  Value is only instantaneously and subjective.  I cannot compare value to me yesterday, with value to me today.  I can only say, at each instant, what I value and what I don't value.

Appreciation changes.  Subjective value changes.
Andreina0107
Jr. Member
*
Offline Offline

Activity: 77
Merit: 4


View Profile
August 29, 2018, 01:00:03 AM

Bitcoin is a great way to invest, because there are limited amount of it. There is no inflation, conversely, the price goes up.

★ PRiVCY ➢ Own Your Privacy! ➢ Best privacy crypto-market! ★
✈✈✈[PoW/PoS]✅[Tor]✅[Airdrop]✈✈✈ (https://privcy.io/)
pokang13
Newbie
*
Offline Offline

Activity: 109
Merit: 0


View Profile
September 02, 2018, 02:39:11 PM

This naturally happens in the buainesa worl.In good times or in bad times, you need to be adaptive and flexible.You have to be ready in inflation and deflatio  of price and money supply.
PlayChip
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile WWW
September 04, 2018, 03:23:19 AM

Oh, to have been involved in Bitcoin back when having 10-20 BTC didn't put you in the top 1% already!

Great explanation of inflation and deflation, shame I am five years late!
ivan72
Newbie
*
Offline Offline

Activity: 185
Merit: 0


View Profile WWW
September 04, 2018, 09:56:40 AM

Guys a wonderful project, I advise everyone to come in and start investing, sorry someone on my link sign up will receive$50
I advise you not to ignore it) because you can benefit from it! Wink
https://einhorncoin.com/?ref=ishabliy@yandex.ru
Baokali92
Newbie
*
Offline Offline

Activity: 104
Merit: 0


View Profile
September 04, 2018, 04:02:19 PM

I really think at this current rate bitcoin is producing over capacity output which also makes the demand for it lower. I think the value of it will start to slowly depreciate
cleberw3b
Newbie
*
Offline Offline

Activity: 29
Merit: 0


View Profile
September 06, 2018, 03:45:46 PM

Bitcoin is an asset that has limited supply, witch make it more expensive over time, meaning, over adoption. People need to remember that Bitcoin came to substitute money as we seen today. Governments and Banks have been creating money from thin air since World War One when they created fiat money, since then inflation is taken wealth from people as the value of the paper is reduced by new printed money, as colateral as that we have debt increase which take wealth from futures generations to be expended nowadays. As more fiat currencies fail around the world more people will realise what is real money and they will come for Bitcoin as store of value beacuse of it intrisic value, scarcity.
Laily alie
Newbie
*
Offline Offline

Activity: 97
Merit: 0


View Profile
September 06, 2018, 04:04:08 PM

Infrastructure for bitcoin generated from mining and we need a device that is not cheap. maybe in future after bitcoin can't be mining, the miner will mining other altcoin and payout in bitcoin like a multipool.
 Lips sealed Lips sealed
anthonytcm
Newbie
*
Offline Offline

Activity: 25
Merit: 0


View Profile
September 08, 2018, 04:48:26 AM

Finally, back to the original discussion, market cap may be an indicator which we can study to understand supply and demand. However, it is not a primary cause of supply and demand or BTC value. If market cap measured in USD was a primary cause of BTC value, then we should all view BTC as a bank to temporarily deposit USD and maybe collect some interest (making BTC a ponzi scheme).

The appeal of having some BTC is not at all the market cap measured in USD. Without speaking for everyone, I believe BTC's appeal and inherent value is secure storage of value coupled with convenient exchange of value. Looking at the market cap is still informative though.

The value of a USD $1 will decrease because USD suffers continuous inflation. The value of 1 BTC will increase for the time being because demand for BTC is increasing faster than supply. And after most of the BTC have been mined, the value of 1 BTC will increase because of the deflationary nature of BTC. But we should definitely have this discussion again at that point, to see what it means for the miners.

As mentioned in the original post, a large part of Bitcoin's positive value (which increases the exchange rate of BTC) is the DEMAND for Bitcoin, via the physical manifestation of that ideological value through trade (in this case, BUYING BTC). However, this is not the end of the story, and you bring up this great philosophical question which I am delighted to dive into! So now we must travel deeper into this rabbit hole, as we ask, what creates this demand!? Why do people find Bitcoin valuable enough to trade anything for it?!

Here is my response to this question in a related discussion at What is bitcoin backed by? My favorite answers

"What is Bitcoin backed by?"

It is backed by value.
Value is created by people, it is not intrinsic to anything except ideas (opinions).
Certain resources (gold, dollars, real estate, stocks, etc) have great monetary value in our society because we look for, or create, certain properties in them when following a particular - the most popular - economic theory at the time.
As an example, if we all started to adopt the theory of resource-based economics, widely promoted by Peter Joseph who created the Zeitgeist movie-series, we would value resources very differently.
So what makes Bitcoin valuable to people (adopters) in a capitalistic economy?
It can be a multitude of reasons:

  • Deflation is better than inflation
  • It is better to have a decentralized power
  • Transactions in Bitcoin are cheaper, easier in a digital world
  • The Blockchain: a PUBLIC record of every transaction
  • I hate Ben Bernanke or the Federal Reserve System
  • The security of Bitcoin's cryptography
  • Irreversible transactions
  • A new economy to start a bushiness in
  • Anonymity (if done properly)
  • Dude, I can buy drugs like I buy shit on Amazon... awesome
  • I don't know, my friend uses it and I just follow whatever they does cause I think they're cool (majority of people)
  • I like code
  • I like turtle
  • Miner: "Free money man!"
  • we can win a major battle in the arms race and gain a new territory of freedom for several years
  • Etc...

Therefore, we can certainly add to our list that "Mining increases the value of each BTC because it reinforces 'the way BTC works'" and its "secure storage of value coupled with convenient exchange of value."  Personally, I agree with you on both accounts and believe those to be some of the more important and valuable aspects of Bitcoin.

As for the comment regarding Market Capitalization: after this post, I think you have a better understanding of where I was coming from when I posted it, so certainly not arguing with you there!  Wink

I am actually working on creating an inflation-adjusted BTC/USD chart at the moment, just to have a solid visual of that here. Though, honestly, you could just look at a Bitcoin chart priced in gold and you would have another somewhat-similar visual. Like the Market Cap chart, this is just another representation of Bitcoin's value, yes, but I do think they are important when attempting to predict market trends, as you know.

A chart of that can be found at a fellow Bitcoin users blog: http://pricedingold.com/

http://pricedingold.com/charts/BTC-2010.png

It's a cool blog. He charts pretty much everything in terms of gold. Lots of great data!!

Wow, very thorough and nice insights all around. I'll save that thread for future reference.
ygapophysis
Newbie
*
Offline Offline

Activity: 10
Merit: 1


View Profile
September 08, 2018, 12:16:17 PM

Keynesian and other non-monetarist economists reject orthodox interpretations of the quantity theory. Their definitions of inflation focus more on actual price increases, with or without money supply considerations.
Pages: « 1 ... 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 45 46 47 48 49 50 51 52 53 54 55 56 57 58 [59] 60 »
  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!