What about the idea of an inflationary bitcoin?

[devphp]

The value increasing 1% a month is same as adding the money supply 1% a month.

No. What you refer to is the price of Bitcoin going up, because fiat is inflationary and people buy more goods and services trying to get rid of inflationary fiat, thus fiat inflation is reflected in the price of goods and services, including Bitcoin. But Bitcoin itself functions as money, the inflation of Bitcoin as money is being discussed here.

[hmmkay]

Many coins will be lost forever by people dying without finding the keys, or simply losing the keys (Karpeles?).
I'd imagine a very slow and controlled inflation once we hit the wall of 21 million.

[tee-rex]

-Inflation would be just under 1% (bitcoins released minus the bitcoins that were lost in the system) which I think would be a solid stable economic number to promote responsible spending...

At first it was clear that under inflation you meant here money supply, then you mentioned "a solid stable economic number to promote responsible spending", and this obviously referred to price inflation. You shouldn't mix these two notions since they are neither synonymous nor interchangeable. You may have a positive money supply (more money entering circulation) while the currency may still be appreciating and vice versa.

[DannyElfman]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

This is true bitcoin is very inflationary
For a few more halvings at least
https://en.bitcoin.it/wiki/Controlled_supply

Bitcoin is technically inflationary while the block subsidies are still in place. However it will often act in a deflationary way as holders of bitcoin generally expect it's value to rise in the future.

[Swordsoffreedom]

It's already inflationary
Controlled supply until 2100 + so you don't really need to worry about it being deflationary in our lifetime

But Danny has a point it depends how people will perceive a decreasing Bitcoin supply

[Benjig]

It's already inflationary
Controlled supply until 2100 + so you don't really need to worry about it being deflationary in our lifetime

But Danny has a point it depends how people will perceive a decreasing Bitcoin supply

Yeah, and no matter the amount of bitcoins created everyday, it doesnt affect the price, there you can know how stable bitcoin price is.

[galbros]

This is called dogecoin.  So far the jury is still out.  However, I like bitcoin's deflationary aspect.

[DannyElfman]

It's already inflationary
Controlled supply until 2100 + so you don't really need to worry about it being deflationary in our lifetime

But Danny has a point it depends how people will perceive a decreasing Bitcoin supply

Yeah, and no matter the amount of bitcoins created everyday, it doesnt affect the price, there you can know how stable bitcoin price is.

The amount of bitcoins created does affect the price, it is that there is demand for the additional coins that are created.

[tee-rex]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

This is true bitcoin is very inflationary
For a few more halvings at least
https://en.bitcoin.it/wiki/Controlled_supply

Bitcoin is technically inflationary while the block subsidies are still in place. However it will often act in a deflationary way as holders of bitcoin generally expect it's value to rise in the future.

I would rather say that up to the present moment, bitcoin is neither deflationary nor inflationary (if we don't take price swings as a criterion for telling between them). In practice, now it behaves more like a purely speculative tool (which it is, at least presently).

[Swordsoffreedom]

This is called dogecoin.  So far the jury is still out.  However, I like bitcoin's deflationary aspect.

True doge has a really large minting so it doesn't help it in that sense
But your right more or less the jury is still out on that

[tee-rex]

It's already inflationary
Controlled supply until 2100 + so you don't really need to worry about it being deflationary in our lifetime

But Danny has a point it depends how people will perceive a decreasing Bitcoin supply

Yeah, and no matter the amount of bitcoins created everyday, it doesnt affect the price, there you can know how stable bitcoin price is.

Was it sarcasm (about how stable bitcoin price is)?

Price is determined by both supply and demand. So the number of newly minted (mined) coins that go into bitcoin market does necessarily influence its exchange rate. The main question here is what part of the created bitcoins changes hands on bitcoin exchanges. There was a thread somewhere around here where the OP tried to statistically estimate this share and how price is affected by new bitcoins.

[Harley997]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

This is true bitcoin is very inflationary
For a few more halvings at least
https://en.bitcoin.it/wiki/Controlled_supply

Bitcoin is technically inflationary while the block subsidies are still in place. However it will often act in a deflationary way as holders of bitcoin generally expect it's value to rise in the future.

I would rather say that up to the present moment, bitcoin is neither deflationary nor inflationary (if we don't take price swings as a criterion for telling between them). In practice, now it behaves more like a purely speculative tool (which it is, at least presently).

Bitcoin would be considered to be inflationary as more bitcoin are created every day.

[twiifm]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

This is true bitcoin is very inflationary
For a few more halvings at least
https://en.bitcoin.it/wiki/Controlled_supply

Bitcoin is technically inflationary while the block subsidies are still in place. However it will often act in a deflationary way as holders of bitcoin generally expect it's value to rise in the future.

I would rather say that up to the present moment, bitcoin is neither deflationary nor inflationary (if we don't take price swings as a criterion for telling between them). In practice, now it behaves more like a purely speculative tool (which it is, at least presently).

Bitcoin would be considered to be inflationary as more bitcoin are created every day.

I read somewhere thatbitcoin inflates at 6% until all coins are mined.   Don't know if its correct

[Este Nuno]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

This is true bitcoin is very inflationary
For a few more halvings at least
https://en.bitcoin.it/wiki/Controlled_supply

Bitcoin is technically inflationary while the block subsidies are still in place. However it will often act in a deflationary way as holders of bitcoin generally expect it's value to rise in the future.

I would rather say that up to the present moment, bitcoin is neither deflationary nor inflationary (if we don't take price swings as a criterion for telling between them). In practice, now it behaves more like a purely speculative tool (which it is, at least presently).

Bitcoin would be considered to be inflationary as more bitcoin are created every day.

I read somewhere thatbitcoin inflates at 6% until all coins are mined.   Don't know if its correct

Well there's definitely lots of coins being mined everyday and thus the supply is inflating. I'm not really sure where the 'deflationary' label came from exactly. It will be deflationary in 2140 or whatever when blocks stop giving rewards. If it's ever around by then.

[ShakyhandsBTCer]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

This is true bitcoin is very inflationary
For a few more halvings at least
https://en.bitcoin.it/wiki/Controlled_supply

Bitcoin is technically inflationary while the block subsidies are still in place. However it will often act in a deflationary way as holders of bitcoin generally expect it's value to rise in the future.

I would rather say that up to the present moment, bitcoin is neither deflationary nor inflationary (if we don't take price swings as a criterion for telling between them). In practice, now it behaves more like a purely speculative tool (which it is, at least presently).

Bitcoin would be considered to be inflationary as more bitcoin are created every day.

I read somewhere thatbitcoin inflates at 6% until all coins are mined.   Don't know if its correct

Not exactly, and your 6% figure is much too high.

The amount of new coins mined per day via the block subsidy is fixed 3,600 BTC per day, however the total amount of coins in circulation will increase every day, so the inflation rate, as a percentage will shrink as the number of new coins, as a percentage of total coins decreases. The inflation rate will also drop by 50% every time the block subsidy is halved.

[devphp]

Well there's definitely lots of coins being mined everyday and thus the supply is inflating. I'm not really sure where the 'deflationary' label came from exactly. It will be deflationary in 2140 or whatever when blocks stop giving rewards. If it's ever around by then.

Yeah, a lot of myths and misconceptions are touted around. People believe what they like to believe, but reality sets in, sooner or later.

[Harley997]

Well there's definitely lots of coins being mined everyday and thus the supply is inflating. I'm not really sure where the 'deflationary' label came from exactly. It will be deflationary in 2140 or whatever when blocks stop giving rewards. If it's ever around by then.

Yeah, a lot of myths and misconceptions are touted around. People believe what they like to believe, but reality sets in, sooner or later.

The MSM says that bitcoin is deflationary because the people who hold bitcoin generally believe that the value will rise over time, preventing them from wanting to engage in trades for goods/services for their bitcoin

[devphp]

The MSM says that bitcoin is deflationary because the people who hold bitcoin generally believe that the value will rise over time, preventing them from wanting to engage in trades for goods/services for their bitcoin

We can generalize that statement as "Demand for Bitcoin exceeds/exceeded supply of newly mined Bitcoins, it can/could be considered as deflationary".

Technically it's not, but it all comes down to demand and supply, which one is greater at a given moment of time. Price stablity means they are about equal.

With Overstock, Newegg, Tigerdirect coming on board there is more engagement in trading bitcoins for goods and services, which adds to the circulating supply of Bitcoins on the market.

[Harley997]

The MSM says that bitcoin is deflationary because the people who hold bitcoin generally believe that the value will rise over time, preventing them from wanting to engage in trades for goods/services for their bitcoin

We can generalize that statement as "Demand for Bitcoin exceeds/exceeded supply of newly mined Bitcoins, it can/could be considered as deflationary".

Technically it's not, but it all comes down to demand and supply, which one is greater at a given moment of time. Price stablity means they are about equal.

With Overstock, Newegg, Tigerdirect coming on board there is more engagement in trading bitcoins for goods and services, which adds to the circulating supply of Bitcoins on the market.

The MSM needs to dumb down concepts to a 9th grade or so level. As a result a lot of what the say about highly technical topics can be inaccurate.

[Nerazzura]

If the inflation is mathematically defined, it will only make it more difficult to calculate. There is no point in it.

Inflation has a positive impact and negative effects, depending on whether or not severe inflation. If inflation was mild, it has a positive effect in terms of stimulating the economy could be better, ie increases the national income and get people excited to work, saving and investment holding.

Conversely, in a period of severe inflation, which in the event of uncontrolled inflation (hyperinflation), the state of the economy became chaotic and felt sluggish economy. People are not excited about working, saving, or investments and production because prices are rising rapidly. The fixed-income recipients such as civil servants or private employees and workers will also be overwhelmed bear and offset the price so that their lives become increasingly slipped and fell from time to time.