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When Bitcoiners talk about "inflation" they don't mean inflation of prices. They mean loss of purchasing power. Demand-pull inflation in fact is exactly what i
by disruptalot 6y ago
When Bitcoiners talk about "inflation" they don't mean inflation of prices. They mean loss of purchasing power.
Demand-pull inflation in fact is exactly what is happening with Bitcoin and bitcoiners would agree. There's huge demand for bitcoin and an ever reduction of circulating supply. What that means is that it can maintain/increase purchasing power incredibly relative to other assets that have unconstrained and erratic supply (fiat).
- tylerhou 6y agoDemand-pull inflation is not happening with Bitcoin. Again, inflation refers to the devaluation of currency. If the purchasing power of Bitcoin goes up, Bitcoin is deflating, not inflating. Maybe you are trying to say that the USD is inflating (w/ demand-pull inflation) because USD is becoming less valuable, relative to Bitcoin. But that theory is still problematic, since you can't measure inflation against just one asset. An asset might appreciate because of a shift in consumer demand -- the currency itself might not have "devalued." Instead, a better way to measure inflation is wrt. a basket of goods, like CPI. CPI has not changed much in the last year, which implies that the USD is not inflating much.
- ad31mar 6y ago> But that theory is still problematic, since you can't measure inflation against just one asset. How about another two? Like equities and real estate. Still not inflation? CPI is a scam - it now includes 80,000+ items muting the shit out of the dramatic price changes in the stuff you actually want and need.
- lupire 6y agoThat's half true, because Jeff Bezos can't buy himself a billion takeout dinners. Consumer prices are flat, but the money printer is making investing assets expensive. That's fun for last year's investors but not next year's.