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I'm sympathetic to the inflation argument, but it doesn't seem to match what actually happens. For example, Bitcoin inflated by about 20% in a 20-minute period
by mikeash 9y ago
I'm sympathetic to the inflation argument, but it doesn't seem to match what actually happens. For example, Bitcoin inflated by about 20% in a 20-minute period yesterday. The theory doesn't seem to match the practice here.
- alexasmyths 9y agoWhat he means to say is that the currency goes up, prices go down. So if a currency goes up in value, that's actually economic 'deflation', because the prices of goods go down. Now - I don't agree with any of the commenters arguments at all, but the terms 'inflationary' and 'deflationary' are used in that context. There are some that argue the inflation and deflation are not a function of the price of goods - rather - simply the amount of money in circulation and that's it. I think this is the Austrian position.
- mikeash 9y agoI'm not sure what you're trying to correct here. Are you thinking I used "inflation" to describe an increase in Bitcoin's price? I wasn't: Bitcoin's price spiked overall yesterday, but there was also a point where the price dropped by 20% in 20 minutes, and that's what I'm referring to.