4 ms·

You're not wrong, but the USD has had ~6% inflation over the last year while Bitcoin has experienced ~15% inflation since the end of last motnh.

AnthonyMouse 5y ago
Kind of cherry picking when over the same year as the 6%, Bitcoin has experienced ~45% deflation, isn't it?
- vorpalhex 5y ago
  Stability is a feature. 6% is pretty rough, ~45% is atrocious world ending stuff.
  - deleted 5y ago
    [deleted]
  - AnthonyMouse 5y ago
    The deflationary aspect of Bitcoin was a design flaw, but it's not inherent to cryptocurrencies generally. Nothing says there has to be a finite supply of coins as opposed to the supply scaling in proportion to how much the value of the currency exceeds the cost of hardware or electricity. And even with Bitcoin itself, think about what Wall Street and governments would do with securities derivatives and Bitcoin-denominated debt instruments. The supply of Bitcoin isn't actually limited by the supply of Bitcoin.
  - ekianjo 5y ago
    > Stability is a feature so the USD going to the ground at 6% per year is a feature? Aren't currencies supposed to be store of value over the long term, you know, over dozens of years since you need hard cash to retire?
    - vorpalhex 5y ago
      Inflation has historically been targeted around 2%, though we've seen period of higher inflation and sometimes very rarely a little bit of deflation (though not recently). Some inflation is normal and fine. 6% is rough but tolerable, but getting it back to 2% is obviously desirable.
      - ekianjo 5y ago
        > Inflation has historically been targeted around 2%, thats' been much higher than that because the basket they use to measure inflation is not at all representative and does not account for the cost of energy, anywhere. Believing the propaganda from governments does not help much.
        vorpalhex 5y ago
        Right we don't include fuel or groceries in that normalized figure because across the US it will pull the average in very funny places. The figure with those included is available on the same page, but it's not the standard inflation figure. It's far too boring to be some conspiracy or propaganda.
        ekianjo 5y ago
        > It's far too boring to be some conspiracy or propaganda. You don't even need to bring lizard men in the mix to understand that the government has a clear conflict of interest when it comes to reporting inflation.
- seoaeu 5y ago
  You’re just providing additional evidence that Bitcoin is widely more volatile than USD. A +45% swing this year could easily mean a -45% swing next year…
  - AnthonyMouse 5y ago
    Goalposts wherever you like. > A +45% swing this year could easily mean a -45% swing next year... Volatility is a function of speculation. When most of the currency supply is held by speculators, high volatility. Less of that the more people actually use it as a currency.
ekianjo 5y ago
> You're not wrong, but the USD has had ~6% inflation over the last year while Bitcoin has experienced ~15% inflation since the end of last motnh. I was merely making a point that if you think defrauding currencies is limited to crypto, you are missing the big picture that every currency out there has been smashed by inflation over the past 50 years. Look at how the dollar went downhill since it went off the gold standard. And that's within one's lifetime.

AnthonyMouse 5y ago

Kind of cherry picking when over the same year as the 6%, Bitcoin has experienced ~45% deflation, isn't it?

vorpalhex 5y ago
Stability is a feature. 6% is pretty rough, ~45% is atrocious world ending stuff.
- deleted 5y ago
  [deleted]
- AnthonyMouse 5y ago
  The deflationary aspect of Bitcoin was a design flaw, but it's not inherent to cryptocurrencies generally. Nothing says there has to be a finite supply of coins as opposed to the supply scaling in proportion to how much the value of the currency exceeds the cost of hardware or electricity. And even with Bitcoin itself, think about what Wall Street and governments would do with securities derivatives and Bitcoin-denominated debt instruments. The supply of Bitcoin isn't actually limited by the supply of Bitcoin.
- ekianjo 5y ago
  > Stability is a feature so the USD going to the ground at 6% per year is a feature? Aren't currencies supposed to be store of value over the long term, you know, over dozens of years since you need hard cash to retire?
  - vorpalhex 5y ago
    Inflation has historically been targeted around 2%, though we've seen period of higher inflation and sometimes very rarely a little bit of deflation (though not recently). Some inflation is normal and fine. 6% is rough but tolerable, but getting it back to 2% is obviously desirable.
    - ekianjo 5y ago
      > Inflation has historically been targeted around 2%, thats' been much higher than that because the basket they use to measure inflation is not at all representative and does not account for the cost of energy, anywhere. Believing the propaganda from governments does not help much.
      - vorpalhex 5y ago
        Right we don't include fuel or groceries in that normalized figure because across the US it will pull the average in very funny places. The figure with those included is available on the same page, but it's not the standard inflation figure. It's far too boring to be some conspiracy or propaganda.
        ekianjo 5y ago
        > It's far too boring to be some conspiracy or propaganda. You don't even need to bring lizard men in the mix to understand that the government has a clear conflict of interest when it comes to reporting inflation.
seoaeu 5y ago
You’re just providing additional evidence that Bitcoin is widely more volatile than USD. A +45% swing this year could easily mean a -45% swing next year…
- AnthonyMouse 5y ago
  Goalposts wherever you like. > A +45% swing this year could easily mean a -45% swing next year... Volatility is a function of speculation. When most of the currency supply is held by speculators, high volatility. Less of that the more people actually use it as a currency.

ekianjo 5y ago

> You're not wrong, but the USD has had ~6% inflation over the last year while Bitcoin has experienced ~15% inflation since the end of last motnh. I was merely making a point that if you think defrauding currencies is limited to crypto, you are missing the big picture that every currency out there has been smashed by inflation over the past 50 years. Look at how the dollar went downhill since it went off the gold standard. And that's within one's lifetime.