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How do you keep inflation within an economic zone between 2 and 3 percent without control over your money? No matter if the economic growth is between -1% and 1

How do you keep inflation within an economic zone between 2 and 3 percent without control over your money? No matter if the economic growth is between -1% and 10%?

xiphias2 5y ago
Bitcoin has a built in inflation schedule. If you believe that over long term price inflation of scarce assets (like New York real estate) will follow the inflation of the emission of the currency (which I believe), Bitcoin will make sure it will stay under 1% in the future. Right now Bitcoin is in the adoption phase, that’s why people are seeing the crazy price moves, but I expect it to normalize in the future (maybe 10 years from now).
- it_citizen 5y ago
  I am not talking about scarce assets but of the entire economy of a country. Concretely, how would bitcoin would manage to keep inflation in a healthy range (1.5%-3%) given that we can no longer decide to emit or remove money from the system as the situation evolves? If the world goes into recession vs know an economical boom, you don't want to emit the same amount of money into the system. Also, if two economic zones have very different growth rates, how does that work with a global currency like bitcoin?
  - xiphias2 5y ago
    Can you tell me a period of time from history when governments were removing money from the system (spending less than they were raising taxes and paying back their bonds without creating more debt)? It never happens. What governments are doing is unsustainable, people are not happy with the trillions of dollars they are printing and buying up scarce assets (which are the most imporant things for people…good luck living in an email inbox for free).
  - landemva 5y ago
    If by inflation you mean the rise in general prices, or the destruction of the purchasing power of the monetary unit, then the track record is that btc will continue to be deflationary in that your purchasing power will be increased. If you don't like increased purchasing power, there are alternatives such as holding most any government issued monetary unit.

How do you keep inflation within an economic zone between 2 and 3 percent without control over your money? No matter if the economic growth is between -1% and 10%?

xiphias2 5y ago

Bitcoin has a built in inflation schedule. If you believe that over long term price inflation of scarce assets (like New York real estate) will follow the inflation of the emission of the currency (which I believe), Bitcoin will make sure it will stay under 1% in the future. Right now Bitcoin is in the adoption phase, that’s why people are seeing the crazy price moves, but I expect it to normalize in the future (maybe 10 years from now).

it_citizen 5y ago
I am not talking about scarce assets but of the entire economy of a country. Concretely, how would bitcoin would manage to keep inflation in a healthy range (1.5%-3%) given that we can no longer decide to emit or remove money from the system as the situation evolves? If the world goes into recession vs know an economical boom, you don't want to emit the same amount of money into the system. Also, if two economic zones have very different growth rates, how does that work with a global currency like bitcoin?
- xiphias2 5y ago
  Can you tell me a period of time from history when governments were removing money from the system (spending less than they were raising taxes and paying back their bonds without creating more debt)? It never happens. What governments are doing is unsustainable, people are not happy with the trillions of dollars they are printing and buying up scarce assets (which are the most imporant things for people…good luck living in an email inbox for free).
- landemva 5y ago
  If by inflation you mean the rise in general prices, or the destruction of the purchasing power of the monetary unit, then the track record is that btc will continue to be deflationary in that your purchasing power will be increased. If you don't like increased purchasing power, there are alternatives such as holding most any government issued monetary unit.