Bitcoin Forum
November 21, 2019, 02:47:30 AM *
News: Help collect the most notable posts made over the last 10 years.
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Bitcoin, USD and inflation  (Read 170 times)
Avity
Member
**
Offline Offline

Activity: 112
Merit: 10


View Profile
October 31, 2017, 06:01:22 PM
 #1

Bitcoin seems to have become successful and increase in value because of the standard law of Supply and Demand.  My question is, How does the USD retain its value when they do not follow the law of supply and Demand and just continue printing money in addition to having a massive national debt? 

Will there be a revaluation of the USD and will this affect the value of Bitcoin for better or worse?

1574304450
Hero Member
*
Offline Offline

Posts: 1574304450

View Profile Personal Message (Offline)

Ignore
1574304450
Reply with quote  #2

1574304450
Report to moderator
1574304450
Hero Member
*
Offline Offline

Posts: 1574304450

View Profile Personal Message (Offline)

Ignore
1574304450
Reply with quote  #2

1574304450
Report to moderator
The Bitcoin Forum is turning 10 years old! Join the community in sharing and exploring the notable posts made over the years.
aardvark15
Hero Member
*****
Offline Offline

Activity: 924
Merit: 509


View Profile
October 31, 2017, 06:18:16 PM
 #2

Bitcoin seems to have become successful and increase in value because of the standard law of Supply and Demand.  My question is, How does the USD retain its value when they do not follow the law of supply and Demand and just continue printing money in addition to having a massive national debt? 

Will there be a revaluation of the USD and will this affect the value of Bitcoin for better or worse?



The US dollar actually loses value over time. You can buy less with a dollar as each year passes, which is inflation. However, it is true that the US dollar holds value better than many fiat currencies around the world. This is probably due to the strength of the United States in the world in terms of it’s economy and military. The backing of the US government keeps the US dollar relatively strong. But if anything were to happen to weaken the US economy, the US dollar could drop in value significantly.

 
                                . ██████████.
                              .████████████████.
                           .██████████████████████.
                        -█████████████████████████████
                     .██████████████████████████████████.
                  -█████████████████████████████████████████
               -███████████████████████████████████████████████
           .-█████████████████████████████████████████████████████.
        .████████████████████████████████████████████████████████████
       .██████████████████████████████████████████████████████████████.
       .██████████████████████████████████████████████████████████████.
       ..████████████████████████████████████████████████████████████..
       .   .██████████████████████████████████████████████████████.
       .      .████████████████████████████████████████████████.

       .       .██████████████████████████████████████████████
       .    ██████████████████████████████████████████████████████
       .█████████████████████████████████████████████████████████████.
        .███████████████████████████████████████████████████████████
           .█████████████████████████████████████████████████████
              .████████████████████████████████████████████████
                   ████████████████████████████████████████
                      ██████████████████████████████████
                          ██████████████████████████
                             ████████████████████
                               ████████████████
                                   █████████
.CryptoTalk.org.|.MAKE POSTS AND EARN BTC!.🏆
candy27
Member
**
Offline Offline

Activity: 106
Merit: 13


View Profile
October 31, 2017, 06:25:07 PM
 #3

Bitcoin seems to have become successful and increase in value because of the standard law of Supply and Demand.  My question is, How does the USD retain its value when they do not follow the law of supply and Demand and just continue printing money in addition to having a massive national debt? 

Will there be a revaluation of the USD and will this affect the value of Bitcoin for better or worse?



There has already been a revaluation of USD - since 2014 it has been climbing against other currencies. That's because the US economy is outperforming other countries, and also, because people trust the US govt more than they trust their own. The Americans have never defaulted on their debts.
BillyBobZorton
Legendary
*
Offline Offline

Activity: 1204
Merit: 1019


View Profile
October 31, 2017, 06:29:53 PM
 #4

Bitcoin seems to have become successful and increase in value because of the standard law of Supply and Demand.  My question is, How does the USD retain its value when they do not follow the law of supply and Demand and just continue printing money in addition to having a massive national debt? 

Will there be a revaluation of the USD and will this affect the value of Bitcoin for better or worse?



Just look at this pic:



With Bitcoin, you are winning the lottery at slow motion. With the US Dollar, you are losing what you have in slow motion.

The supply of the US Dollar keeps increasing, the valuation of "1 USD" may still be "1 USD" but your purchashing power has gone down the shitter as you can see, whereas with BTC it keeps going up.
octaviomoreno
Newbie
*
Offline Offline

Activity: 34
Merit: 0


View Profile
October 31, 2017, 07:01:52 PM
 #5

Bitcoin seems to have become successful and increase in value because of the standard law of Supply and Demand.  My question is, How does the USD retain its value when they do not follow the law of supply and Demand and just continue printing money in addition to having a massive national debt? 

Will there be a revaluation of the USD and will this affect the value of Bitcoin for better or worse?



Just look at this pic:

http://image.ibb.co/eHBksb/usdollar.gif

With Bitcoin, you are winning the lottery at slow motion. With the US Dollar, you are losing what you have in slow motion.

The supply of the US Dollar keeps increasing, the valuation of "1 USD" may still be "1 USD" but your purchashing power has gone down the shitter as you can see, whereas with BTC it keeps going up.
So which is the best way to keep your value as the same position in few years with these huge inflation?
shillberting
Member
**
Offline Offline

Activity: 103
Merit: 10


View Profile
October 31, 2017, 07:10:30 PM
 #6

Thats just it though it doesnt retain its value. When you print more and more money the money you currently have gets devalued and you lose purchasing power. This is why bitcoin is an amazing commodity because it is good

store of value and it can be so because it doesnt constantly get devalued.
Hydrogen
Hero Member
*****
Offline Offline

Activity: 1246
Merit: 733



View Profile
October 31, 2017, 09:03:36 PM
 #7

The us dollar might devalue if the united states were the only country printing money en masse. As nearly every modern country is printing an excess supply of fiat, it may tend to cancel itself out as exchange rates tell the tale of a currencies value in relation to the currencies of other nations. The USA also is credited with having the largest economy in the world and the most expensive military. This influence in terms of economy and defense translates to the us dollar's value on an international scale. People assume the united states having money and military power will act as collateral against doomsday scenarios.

By and large the us dollar retaining value operates on a massive trust system where people have faith that the US government will make the correct decisions to avoid crashing everything. Then people have faith that banks won't steal everyone's money, that is held in trust, if that worst case scenario occurs. Everything is built on trust that those in positions of power will make responsible decisions for the good of everyone, rather than act in favor of special interests or hidden agendas. To a degree this could factor into some of the things Satoshi Nakamoto has said about trust based systems and humanity perhaps having a dire need for systems that do not operate on trust.

invot
Member
**
Offline Offline

Activity: 66
Merit: 10


View Profile WWW
October 31, 2017, 09:34:43 PM
 #8

Thats just it though it doesnt retain its value. When you print more and more money the money you currently have gets devalued and you lose purchasing power. This is why bitcoin is an amazing commodity because it is good

store of value and it can be so because it doesnt constantly get devalued.

Sure! But also you should guarantee it maintain always as a useful technology in order to increase/maintain its value

Pages: [1]
  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!