Now the question is, is the amount of bitcoins being bought more or less than the ones being sold. Is the rate going up or down. Is it deflating or inflating? Is the supply more than or less than the demand?
Again, the answer to those questions will depend largely on the time frame you look at. From, say, April to June demand outpaced supply, and this was apparent in what the price was doing over that time period - it was going up. If, on the other hand, we look at the period from around mid June to early August, for example, we see that supply outpaced demand, and this was similarly apparent in what the price did over that time period - it went down.
As to the separate question of
why supply outpaces demand in some cases and in others demand outpaces supply, there are loads of variables involved about which we can make best guesses which are sometimes well informed by the available information we have and sometimes are merely guesses.
For example, it was obvious enough on the forums that fear and uncertainty post-MtGox hack led many people to offload coins. Presumably because of considerations that somehow their coins could be stolen, and that if they at least sold some, perhaps all, of them now they would at least have something instead of nothing. At the same time, many people seemed hesitant to buy bitcoins because of hacking worries and the speculative belief that the price would very probably go lower and they could buy more for their money. It seems plausible that for these and other reasons we saw supply outpace demand, and, therefore, price fall.
buddy ANYONE can simply compare the prices between two points in time and say oh it went higher so it was deflating but from there to there it went lower so it was inflating.
You're right. Nevertheless, you asked a question about about that very thing. If it's so simple a question to answer that anyone can do it (and I agree with you about that), they why do you throw a little fit when somebody answers
that question when
you ask it - e.g. "Is bitcoin currently in deflation or inflation?". That question doesn't ask why bitcoin is currently inflationary or deflationary. It asks whether it is one or the other. Sure, you did ask a why question, and I simply didn't answer it. Your OP didn't tell anyone which one you thought more important, and, again, if your first questions about whether bitcoin is deflationary or inflationary are so obvious that somebody answering them upsets you, then why did you ask the questions?
