Bitcoin Forum
August 22, 2019, 11:48:41 PM *
News: Latest Bitcoin Core release: 0.18.0 [Torrent] (New!)
 
   Home   Help Search Login Register More  
Pages: « 1 [2]  All
  Print  
Author Topic: Is BTC really a deflating currency or an inflating?  (Read 1562 times)
viridisk
Member
**
Offline Offline

Activity: 70
Merit: 10

18cchz74xD2rusZ6dgio73opk6biwzVxKu


View Profile
December 05, 2013, 01:35:45 PM
 #21

Well, yeah, but it's basically the same as gold, which could, theoretically, all be lost in infinite amount of time.

But I doubt supply would halve every few years, as time passes and bitcoin is viewed more seriously, people will take more serious steps to protect their assets.

Besides, amount of mined ones will always remain the same. That's the actual theoretical supply. For day-to-day market purposes it is irrelevant are 1 million bitcoins lost into the void or hoarded by some random guy who use them as retirement fund.
1566517721
Hero Member
*
Offline Offline

Posts: 1566517721

View Profile Personal Message (Offline)

Ignore
1566517721
Reply with quote  #2

1566517721
Report to moderator
1566517721
Hero Member
*
Offline Offline

Posts: 1566517721

View Profile Personal Message (Offline)

Ignore
1566517721
Reply with quote  #2

1566517721
Report to moderator
1566517721
Hero Member
*
Offline Offline

Posts: 1566517721

View Profile Personal Message (Offline)

Ignore
1566517721
Reply with quote  #2

1566517721
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
Peter Lambert
Hero Member
*****
Offline Offline

Activity: 756
Merit: 500

It's all fun and games until somebody loses an eye


View Profile
December 05, 2013, 01:42:23 PM
 #22

One thing many people here on bitcointalk ignore is that the money supply of bitcoin which increases and decreases during inflation/deflation is more complicated than just looking at blockexplorer.com and reading "Total BTC: 12.080M". What is actually important is the amount of money in circulation, for example if a large holder decides to start using his hoard then that will introduce inflationary pressure, conversely if somebody earning bitcoins starts saving everything he earns then that will introduce deflationary pressure.

Many people here also ignore credit bitcoins. Any time bitcoins are used in a fractional reserve depository way, or when lines of bitcoin credit are issued, that increases the monetary supply. You can argue all you want that those are not real bitcoins, but they really do affect the bitcoin economy.

Use CoinBR to trade bitcoin stocks: CoinBR.com

The best place for betting with bitcoin: BitBet.us
BitchicksHusband
Sr. Member
****
Offline Offline

Activity: 378
Merit: 254


View Profile
December 05, 2013, 03:33:29 PM
 #23

Its inflating until the last coin is minted.

Actually, it's deflating once the number of lost coins exceeds the number of mined coins.  Once the rewards get small enough, this can happen.

1BitcHiCK1iRa6YVY6qDqC6M594RBYLNPo
ashaw596
Full Member
***
Offline Offline

Activity: 141
Merit: 100


View Profile
December 05, 2013, 08:22:55 PM
 #24

Its currently inflating, but it doesn't matter. Basic economics is that "known" inflation won't really have any real affect. People will account for it in their investments and purchases. In the long term its deflating as Bitcoins get lost. I can't say I quite like that its a deflationary currency :/.
deisik
Legendary
*
Offline Offline

Activity: 2016
Merit: 1115


LocalEthereum.com


View Profile
December 05, 2013, 08:50:17 PM
 #25

Its inflating until the last coin is minted.

Actually, it's deflating once the number of lost coins exceeds the number of mined coins.  Once the rewards get small enough, this can happen.

How could you really assess the number of coins lost? Is there any way to even approximately estimate the rate of "normal wastage" of bitcoins? And could lost coins be retrieved somehow (say, in twenty years)?

████
████
████
████
████          
████             █████████▄
████           ██████████████
████          ██████     ██████
████         ██████       █████
██████████████████████████████
█████████████████████████████▀
              ██████▄
               ██████████████
                 ████████████
  LocalEthereum    50+ Ways To Buy & Sell Ethereum (ETH)   ▄████████████████████▄
██████████████████████
██████████████████████
██████▀▀██████████████
████▀░░░░▀████████████
███▀░░▄▄░░░░░░░░░░████
███▄░░▀▀░░▄▄░░▄▄░░████
████▄░░░░▄██▄▄██▄▄████
██████▄▄██████████████
██████████████████████
██████████████████████
▀████████████████████▀
▄████████████████████▄
██████████████████████
██████████████████████
█████░░▀▀░░░░▀▀░░█████
█████░░░░░░░░░▄░░█████
█████▄░░░░░░▄▀░░▄█████
██████░░░▀▄▀░░░░██████
███████░░░░░░░░███████
████████░░░░░░████████
█████████▄░░▄█████████
██████████████████████
▀████████████████████▀
No verificationsNon-Custodial
Built-in Escrow   ● External Wallet Integration
Roccker
Full Member
***
Offline Offline

Activity: 223
Merit: 108


View Profile
December 05, 2013, 09:49:43 PM
 #26


Hello - is this right:
25 Bitcoins are generated newly every 10 Minutes through mining.
That is 3600 Bitcoins per day.
That is 3 600 000 (3 million, sixhoundredthousand) new dollars (when 1 BC = 1000 dollars) that have to flow into Bitcoins daily (buying orders) just to keep the current price of a Bitcoin.
How does this compare to how much more dollars are created?

The Case for Bitcoin:
https://bitcointalk.org/index.php?topic=4882599.msg43979219#msg43979219


[am a noob]
update 2018: not total newb anymore i guess- now turned megalomaniac
kjj
Legendary
*
Offline Offline

Activity: 1302
Merit: 1001



View Profile
December 05, 2013, 10:26:08 PM
 #27


Hello - is this right:
25 Bitcoins are generated newly every 10 Minutes through mining.
That is 3600 Bitcoins per day.
That is 3 600 000 (3 million, sixhoundredthousand) new dollars (when 1 BC = 1000 dollars) that have to flow into Bitcoins daily (buying orders) just to keep the current price of a Bitcoin.
How does this compare to how much more dollars are created?

3.6 million dollars per day works out to ~110 million per month.  By contrast, QE is creating 83,000 million dollars per month.

For the record, I don't see what the mining rate has to do with flows in and out of the exchanges.

17Np17BSrpnHCZ2pgtiMNnhjnsWJ2TMqq8
I routinely ignore posters with paid advertising in their sigs.  You should too.
Roccker
Full Member
***
Offline Offline

Activity: 223
Merit: 108


View Profile
December 06, 2013, 12:46:35 AM
Last edit: December 06, 2013, 01:37:27 AM by Roccker
 #28

3.6 million dollars per day works out to ~110 million per month.  By contrast, QE is creating 83,000 million dollars per month.
For the record, I don't see what the mining rate has to do with flows in and out of the exchanges.

Sorry, what is QE?

Is my math right with 110 million dollars per month - that worldwide, (assuming in this example that 1bc=1000 dollars) every month bitcoins have to be bought at 110 million dollars? Seems a cracy lot.

25 bitcoins are mined every 10 minutes, and these bitcoins are sold at some point. So to hold the price stable on average 25 bitcoins have to be sold every 10 minutes with new fiat money. (?)


The Case for Bitcoin:
https://bitcointalk.org/index.php?topic=4882599.msg43979219#msg43979219


[am a noob]
update 2018: not total newb anymore i guess- now turned megalomaniac
kjj
Legendary
*
Offline Offline

Activity: 1302
Merit: 1001



View Profile
December 06, 2013, 02:24:10 AM
 #29

3.6 million dollars per day works out to ~110 million per month.  By contrast, QE is creating 83,000 million dollars per month.
For the record, I don't see what the mining rate has to do with flows in and out of the exchanges.

Sorry, what is QE?

Is my math right with 110 million dollars per month - that worldwide, (assuming in this example that 1bc=1000 dollars) every month bitcoins have to be bought at 110 million dollars? Seems a cracy lot.

25 bitcoins are mined every 10 minutes, and these bitcoins are sold at some point. So to hold the price stable on average 25 bitcoins have to be sold every 10 minutes with new fiat money. (?)

QE is Quantitative Easing.  A strange term, but basically it means inflation.  The Federal Reserve is "easing" tightness in the economy by increasing the quantity of money, with the fig leaf of buying bonds.  This inflates the money supply, props up the bond market, and enables about a trillion dollars a year of federal spending.

Your math is right, but your assumptions almost certainly are not.  3600 new bitcoins mined per day does not in any way suggest that 3600 bitcoins are sold (for new cash) in that day.

17Np17BSrpnHCZ2pgtiMNnhjnsWJ2TMqq8
I routinely ignore posters with paid advertising in their sigs.  You should too.
mcmuffmike
Newbie
*
Offline Offline

Activity: 12
Merit: 0


View Profile
December 06, 2013, 03:22:59 AM
 #30

Inflation refers to devaluation of currency through an increase in the money supply. Bitcoin is the opposite, its value increases as the money supply increases because the supply is finite. I.E: the value of the USD suffers inflation when the federal reserve prints more. In other words, when the federal reserve prints more money, the value of 1 dollar can buy less than it could have before. I wrote about this here https://bitcointalk.org/index.php?topic=359343.0
Pages: « 1 [2]  All
  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!