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> yet for it's entire existence so far, the block reward has made it more inflationary than all major currencies Why does every HN bitcoin thread have this rid

> yet for it's entire existence so far, the block reward has made it more inflationary than all major currencies Why does every HN bitcoin thread have this ridiculously incorrect statement being mindless parroted? The inflation rate of bitcoin is currently 1.8%, this is easily confirmed for anyone willing to put in 10 seconds of research. In comparison the US M1 monetary supply is up over 60% in the last year and the S&P 500 valuation is at all time highs despite a massive global recession. At what point will people actually capitulate regarding the value of cash in their wallet being rapidly inflated away across the planet? https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1

CJefferson 6y ago
I was just considering inflation that people see "on the street". By including M1, aren't you including fractional banking? If that is so, if bitcoin became "standard currency", banks would just fractionally bank bitcoin.
- BelenusMordred 6y ago
  Even if you are using CPI as monetary "inflation", it's still far below the CPI target of every developed economy on Earth. Do think M1 is the more accurate measure here because the amount of bitcoin in circulation is the equivalent of M1 as defined by everyone: "currency in supply". https://en.wikipedia.org/wiki/M1_(money_supply_measure) https://en.wikipedia.org/wiki/M1_(money_supply_measure)
jrek 6y ago
Growth in money supply =/= inflation. If price stability is what you want then the money supply has to increase as production increases to avoid deflation.
- BelenusMordred 6y ago
  It's certainly the meaning in some contexts. The problem with the word is it is widely used for consumer price inflation. When talking about asset and monetary inflation people still shorten it to simply "inflation" Growth in money supply is the proper way to compare to different monetary systems like bitcoin and the dollar. > to avoid deflation Last I looked nearly every person on Earth wants price deflation in food/electricity/cars/iphones/etc. The onus on you here to show why that is such a bad thing for society?

CJefferson 6y ago

I was just considering inflation that people see "on the street". By including M1, aren't you including fractional banking? If that is so, if bitcoin became "standard currency", banks would just fractionally bank bitcoin.

BelenusMordred 6y ago
Even if you are using CPI as monetary "inflation", it's still far below the CPI target of every developed economy on Earth. Do think M1 is the more accurate measure here because the amount of bitcoin in circulation is the equivalent of M1 as defined by everyone: "currency in supply". https://en.wikipedia.org/wiki/M1_(money_supply_measure) https://en.wikipedia.org/wiki/M1_(money_supply_measure)

jrek 6y ago

Growth in money supply =/= inflation. If price stability is what you want then the money supply has to increase as production increases to avoid deflation.

BelenusMordred 6y ago
It's certainly the meaning in some contexts. The problem with the word is it is widely used for consumer price inflation. When talking about asset and monetary inflation people still shorten it to simply "inflation" Growth in money supply is the proper way to compare to different monetary systems like bitcoin and the dollar. > to avoid deflation Last I looked nearly every person on Earth wants price deflation in food/electricity/cars/iphones/etc. The onus on you here to show why that is such a bad thing for society?