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you ask for a benefit. a benefit of Bitcoin is zero unexpected inflation. Zero unexpected inflation means the cantillon effect is reduced with adoption of Bitco

you ask for a benefit. a benefit of Bitcoin is zero unexpected inflation. Zero unexpected inflation means the cantillon effect is reduced with adoption of Bitcoin as money, driving out the systems behind central bank caused wealth inequality

akavi 6y ago
Seems like bitcoin experienced a whole lot of unexpected inflation in early March this year. And fall of last year. And November 2018. And January 2018. And... well, you get the picture. Bitcoin guarantees the supply remains fixed. But inflation is also a function of demand, and that is well outside its control.
- notahacker 6y ago
  Indeed it's the exact opposite: as the supply of the dollar is a function of its demand [at an interest rate which can be varied if an inflation target is expected to be missed] its inflation is almost entirely predictable. cf BTC, which predicts zero inflation but has experienced more diminution in purchasing power since late 2018 than the dollar has seen in decades.
  - Sschellbach 6y ago
    The supply of dollars is a function of the monetary policy. Are you suggesting you can predict what M2 will be in 5 years, or even 6 months? Please share your expectation.
    - notahacker 6y ago
      I can confidently predict that M2 will be whatever it needs to be to keep PCE inflation around the 2% mark.
      - Sschellbach 6y ago
        wake up. real inflation in the US has been closer to 8%. Look at real estate, equities, gold. you can't see it coming, all fiat ends with hyperinflation
- coinward 6y ago
  What inflation in early march are you referring to? From my view the fixed supply growth and production from new blocks went right on schedule. Nothing unexpected
  - akavi 6y ago
    The price in bitcoin of a basket of actual consumable goods went up significantly (ie, BTC's dollar value tanked). How is that not inflation? Or are you claiming that was not "unpredictable"?
    - Sschellbach 6y ago
      You are pointing to price volatility. The comment is talking about inflation. Price discovery occurs in all markets with varying degrees of volatility. Speculative bubbles, crashes, etc result occur when new information causes price discovery. Its an ongoing process in an ever-changing world. Inflation is specifically price increases from change in the amount of money in a system. The delta in money supply for Bitcoin is entirely predictable and that was the claim
      - notahacker 6y ago
        > Inflation is specifically price increases from change in the amount of money in a system. No it isn't. Inflation is a general rise in prices in an economy, period, of which change in the amount of money in circulation is only one possible cause [it can also circulate faster or slower due to change in demand, supply constraints, import prices etc].
        Sschellbach 6y ago
        You have confused monetary inflation and price inflation. I'm talking about monetary inflation as per https://en.wikipedia.org/wiki/Monetary_inflation https://en.wikipedia.org/wiki/Monetary_inflation
        6y ago

akavi 6y ago

Seems like bitcoin experienced a whole lot of unexpected inflation in early March this year. And fall of last year. And November 2018. And January 2018. And... well, you get the picture. Bitcoin guarantees the supply remains fixed. But inflation is also a function of demand, and that is well outside its control.

notahacker 6y ago
Indeed it's the exact opposite: as the supply of the dollar is a function of its demand [at an interest rate which can be varied if an inflation target is expected to be missed] its inflation is almost entirely predictable. cf BTC, which predicts zero inflation but has experienced more diminution in purchasing power since late 2018 than the dollar has seen in decades.
- Sschellbach 6y ago
  The supply of dollars is a function of the monetary policy. Are you suggesting you can predict what M2 will be in 5 years, or even 6 months? Please share your expectation.
  - notahacker 6y ago
    I can confidently predict that M2 will be whatever it needs to be to keep PCE inflation around the 2% mark.
    - Sschellbach 6y ago
      wake up. real inflation in the US has been closer to 8%. Look at real estate, equities, gold. you can't see it coming, all fiat ends with hyperinflation
coinward 6y ago
What inflation in early march are you referring to? From my view the fixed supply growth and production from new blocks went right on schedule. Nothing unexpected
- akavi 6y ago
  The price in bitcoin of a basket of actual consumable goods went up significantly (ie, BTC's dollar value tanked). How is that not inflation? Or are you claiming that was not "unpredictable"?
  - Sschellbach 6y ago
    You are pointing to price volatility. The comment is talking about inflation. Price discovery occurs in all markets with varying degrees of volatility. Speculative bubbles, crashes, etc result occur when new information causes price discovery. Its an ongoing process in an ever-changing world. Inflation is specifically price increases from change in the amount of money in a system. The delta in money supply for Bitcoin is entirely predictable and that was the claim
    - notahacker 6y ago
      > Inflation is specifically price increases from change in the amount of money in a system. No it isn't. Inflation is a general rise in prices in an economy, period, of which change in the amount of money in circulation is only one possible cause [it can also circulate faster or slower due to change in demand, supply constraints, import prices etc].
      - Sschellbach 6y ago
        You have confused monetary inflation and price inflation. I'm talking about monetary inflation as per https://en.wikipedia.org/wiki/Monetary_inflation https://en.wikipedia.org/wiki/Monetary_inflation
        6y ago