Money & Inflation

[deisik]

In the economy there is a rule; As the money supply increases, the inflation rate increases in the long term. But the situation here is not to limit money production, but not to print more of the determined money supply. In other words, as long as any country raises money under certain rules, money does not lose money because of inflation, but if any country exceeds this amount of money and continues to print money, then the inflation rate in that country increases and the country's money loses value. On the other hand, for cryptos, the total supply of many cryptocurreny is clear and this supply cannot be changed. Therefore, it is not possible to see an event like inflation in the cryptocurrency sector. Of course, in case of increasing the amount of supply, loss of reputation in the market and serious depreciation are also inevitable

In real life it is way more complicated than that

Basically, an increase in money supply doesn't always lead to an increase in price inflation rates as the relationship between them can be quite complicated. On fundamental level, price inflation level depends not only on money supply as such but also on the economic growth. For example, if the economic growth outpaces the growth in monetary base, that can lead to price deflation even despite a positive money supply

[LUCKMCFLY]

Inflation is and always will be a reaction to the bad financial policies established, with cryptocurrencies there is hardly this problem, because it has a behavior that almost depends on bitcoin, and the other currencies follow them, but why? If you start to study the bitcoin graph, it has structure, and many altcoin have structure very similar to bitcoin, but it is because they do not have a life of their own, if we see other currencies, they have their graphs completely meaningless, this is because the currencies basically depend on pump and dump, hence the term that they are all shitcoin until proven otherwise, in some texts like those of Burton, Livermore and Wyckoff they talk a lot about OFFER-DEMAND, and yes, when the market is released is very difficult to have inflation, inflation is like a parasite for every economy, in the case of Venezuela, the economy or some economist can not explain this phenomenon, because it had never presented under any scenario have a country that entails a inflation that its projection will be 3000000%, however, they depend a lot on the bad policies established by the government, the only solution to these problems I see it with an exit from Cryptocurrencies, but bitcoin, if some country takes bitcoin as an alternative source, not only would it have some kind of liquidity, but the bitcoin would be so moved that it would attract the investors of the miniSP500, or SP500 because the amount of money that is could gestate is a lot, economic problems would be solved that have no solution in days or can in hours (This is my theory) I have there and with my knowledge of the market that would propose it.

[semobo]

Fist money is designed in such a way to get deflated by the days passes,that is the reason we want to better currency against the defaltion and satoshi believed bitcoin can be one of it so created it in decentralized way and made finite number of coins can be obtained through mining.

[Ranly123]

  Inflation is not a good words in the country like Philippines and to others country that belong in the third world country and so stressful. So because of that I can choose money to can manage to support my needs and my family.

Even if you have the money, when inflation strikes to your country you will feel the rise of price of your basic commodities. Also I don't think you can earn much if there is inflation on the basic needs to sustain your daily consumptions.

[Artemis3]

 Inflation is not a good words in the country like Philippines and to others country that belong in the third world country and so stressful. So because of that I can choose money to can manage to support my needs and my family.

Try Venezuela, one million percent inflation last year, some sources say two million...
Last time i checked, Philippines have not pegged their currency since the 70ies. So as much as you hate it, you are still far better than you could be...

If you like to watch videos, watch this:


📉📈 Inflation and Deflation | A Hidden Tax

To put some context of Venezuela:

1983,	4 VEB	= 1 USD.
2004,	1,600 VEB	= 1 USD.
2008,	2,150 VEB	= 1 USD.
2019,	300,000,000,000 VEB	= 1 USD.

1 USD in 1983 means $2.53 today, so take that into account...

In 2008 the VEB was replaced by the VEF, slashing three zeroes.
In 2018, the VEF was replaced by the VES, slashing five zeroes.


In the meantime..:

2009,	1 BTC	= 0 USD.
2009,	1 BTC	= 300 USD.
2019,	1 BTC	= 4000 USD.

[Renaldi blackspadeteam]

hearing the word inflation, really this is very scary, and right if crypto is made continuously it will lose its value but this is a race, if crypto is made by a great project and has loyal users it will not lose its value, so I think all projects have the right to making crypto and for crypto value problems from each project will be different

[ryap12]

In the economy there is a rule; As the money supply increases, the inflation rate increases in the long term. But the situation here is not to limit money production, but not to print more of the determined money supply. In other words, as long as any country raises money under certain rules, money does not lose money because of inflation, but if any country exceeds this amount of money and continues to print money, then the inflation rate in that country increases and the country's money loses value. On the other hand, for cryptos, the total supply of many cryptocurreny is clear and this supply cannot be changed. Therefore, it is not possible to see an event like inflation in the cryptocurrency sector. Of course, in case of increasing the amount of supply, loss of reputation in the market and serious depreciation are also inevitable.

So the fewer the supply, the better value it gets. This kind of stuff is very common already and that it both applies to fiats and cryptocurrencies. The only way to inflate is to stop producing and keep on using then it should inflate.

[horrifiedx1]

hearing the word inflation, really this is very scary, and right if crypto is made continuously it will lose its value but this is a race, if crypto is made by a great project and has loyal users it will not lose its value, so I think all projects have the right to making crypto and for crypto value problems from each project will be different

indeed with the increasing number of projects, the need for bitcoin is even greater. so that it will maintain stability and even price increases. but with a note that the project must be healthy, if the opposite happens, it will hamper development, and certainly cannot offset the inflation rate

[chrisculanag]

Yes money is very important to us because it our source to live a good life but inflation is one of the problem in every country its make economy  market in high price , but there a solution with this if the salary of every workers  are going up too. If we have a good salary worker the inflation is can affects us. But how about the little people that cannot earn to much money thats why inflation is not good . Every country need a equality to the community and that is the one solution that i think.

[magneto]

Interesting video. Pretty sure I've seen at least part of it before.

Quantity of money per unit of output and price index is deeply intricate. At the end of the day, the more cryptocurrency is produced without needed and real usage in economy the lower the value of your crypto assets.

I personally don't think that the creation of other crypto assets or projects necessarily will depreciate the value of bitcoins. It may decrease the market share of bitcoins in the overall crypto market, but since the crypto assets that are on sale with an initial public offering right now are completely different from bitcoin in nature (a lot probably can't even be classified as 'currency').

What will affect bitcoin's value and inflation is the rate at which it's being produced at, which right now is 12.5. The growth of bitcoin's supply is controlled, which is extremely different from the system that fiat operates in which can often leading to debasement of currency in a very short amount of time due to government mismanagement.

What you say regarding bitcoin produced without an increase in demand in the economy for BTC leading to inflation is true, but right now, I think the rate of adoption far exceeds what bitcoin's inflation figures are. And the beauty of a disinflationary system like bitcoin is that as adoption stops growing as fast as BTC gets widely adopted, so does the rate of growth in the money supply.

[deisik]

I personally don't think that the creation of other crypto assets or projects necessarily will depreciate the value of bitcoins. It may decrease the market share of bitcoins in the overall crypto market, but since the crypto assets that are on sale with an initial public offering right now are completely different from bitcoin in nature (a lot probably can't even be classified as 'currency')

I think things are more complicated. People are greedy, and what is even worse, their greed is in fact insatiable. When they had earned something via Bitcoin, they got used to these profits coming their way, and then they started looking for ways to get even more dough. So they chose to leave Bitcoin, fully or partially, and invest in something else. But something else here is synonymous with scams, fraudulent schemes and similar stuff. In simple terms, the idea of value dilution through myriads of shitcoins seems quite legit

And it is definitely not about the market share, of course

[gantez]

It is always the case that the inflation hurts us even when we do not realize or ignore it.Overtime, the money you own become worthless.that is why it is always a better deal to put your money in real assets that grows faster than the average inflation rate over time

Inflation is a wide fire that consumes a country economy and renders the masses into below average standard of living. You witness a mass poverty in a country that is suffering from inflation. It must likely devalues the currency.

However, a citizen that has his money or income in foreign currency tend to live like a king because he has so much value in money to purchase products, invest and sustain himself.

[Sadlife]

That's why its important to not just blindly put your money on some coin that you know that has no real use in the real world cause it will surely pump and dump. Will its probably up to you if you want to speculate on its price. Everyday new tokens arrive with no concept or new idea to introduce in the crypto space that's how they turn into shitcoins.

[BestSSS]

I have been saying for a long time that what is happening on the exchanges of cryptocurrencies is no good. You can not spend so much ICO every day and add so many new projects, because it looks like inflation. The more currencies the less valuable they are. By reducing the number of tokens, it may be possible to increase the price of the most promising projects.

[Reid]

It is because of the division of investment.
Another is the fact that someone is buying those new tokens.

One thing that I have been pushing here since before.
If you want your altcoins to grow in value then keep on pushing bitcoin first. If not, then we will be staying in this kind of market forever.
All of these coins are just going to stay in one price just like how bitcoin is right now. Hate to say it but it is true.

[danherbias07]

As I have read ICO production are now getting lower. It must be really stopped before we end up getting low values because of the amount of money coming out to them without even good usage.

Product is more important than everything and as we can see, past ICO's dont even have it. It is just an imaginary product and the bad thing is they are being supported without it.

Maybe we should be supporting those who are established by now and not like the greed to take that big profit by risking too much.

[iMark]

  Inflation is not a good words in the country like Philippines and to others country that belong in the third world country and so stressful. So because of that I can choose money to can manage to support my needs and my family.

Even if you have the money, when inflation strikes to your country you will feel the rise of price of your basic commodities. Also I don't think you can earn much if there is inflation on the basic needs to sustain your daily consumptions.

For developing countries or third world countries of course inflation is a scourge that sometimes can make you poor suddenly,
you must be smart for this, save your wealth in commodities that are not affected by inflation such as gold or silver

[awik p]

  Inflation is not a good words in the country like Philippines and to others country that belong in the third world country and so stressful. So because of that I can choose money to can manage to support my needs and my family.

Even if you have the money, when inflation strikes to your country you will feel the rise of price of your basic commodities. Also I don't think you can earn much if there is inflation on the basic needs to sustain your daily consumptions.

For developing countries or third world countries of course inflation is a scourge that sometimes can make you poor suddenly,
you must be smart for this, save your wealth in commodities that are not affected by inflation such as gold or silver

right, indeed putting money on one asset such as gold is a good choice so that it is not affected by inflation. moreover we can have property, certainly not only unaffected by inflation, but the increase in property prices is greater than inflation. currently there are other options for investing, where many people call it digital gold

[Coyster]

That's why its important to not just blindly put your money on some coin that you know that has no real use in the real world cause it will surely pump and dump. Will its probably up to you if you want to speculate on its price. Everyday new tokens arrive with no concept or new idea to introduce in the crypto space that's how they turn into shitcoins.

And that's the major reason why most coins after listing never rise again,this are coins that cannot offer anything whatsoever,the idea behind them was poorly thought and never in a million years will there be any demand for it, as its use is not viable in real times.
Before I invest in a project,i must understand what the project is all about,and that's not just on the beginning stage but I'm talking of right into the future,it must be one I feel in years to come it'll still be viable and cannot go extinct

[sclmte]

inflation is about a change that people are especially grateful especially in the Philippines that are very influential in the changing economies of the country because of this many disagreements in the government, it is difficult to buy because of expensive cost. often the government is the ones they follow they do not know that there are many difficulties and distresses and all they suffer