Bitcoin Thread

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Perhaps because you don't understand the principles. I know perfectly well what in/deflation is. Inflation is usually achieved by increasing the money supply but it's not the only way. It's actually a product of the money supply divided by the population. More money per capita means money becomes less scarce so it loses value. But it can also happen with a population decrease without a change in the supply. Since populations typically grow however reserve banks print money to keep ahead and increase the per capita supply to avoid deflation.

Bitcoin is inherently deflationary because the maximum supply is 21m. This is by design. You seem to think that because the supply is currently increasing it's inflationary but that isn't the case. It's deflationary because the user over the supply curve is increasing. Again this is by design.

10 years ago we said that the deflationary aspect will cause hoarding which will result in a situation where it isn't used causing a sudden unpredictable economical collapse. We were right about the hoarding but wrong about the collapse. What we didn't predict was human nature. When something increases tenfold in a short time most people react by selling as nobody can predict that it will increase a hundred or a thousand fold so they take their good fortune and leave. That's why there are so few initial whales and so many thousand Bitcoins for a pizza stories. This means there will always be a free supply even with hoarding.
 
Swa said:
Perhaps because you don't understand the principles. I know perfectly well what in/deflation is. Inflation is usually achieved by increasing the money supply but it's not the only way. It's actually a product of the money supply divided by the population. More money per capita means money becomes less scarce so it loses value. But it can also happen with a population decrease without a change in the supply. Since populations typically grow however reserve banks print money to keep ahead and increase the per capita supply to avoid deflation.

Bitcoin is inherently deflationary because the maximum supply is 21m. This is by design. You seem to think that because the supply is currently increasing it's inflationary but that isn't the case. It's deflationary because the user over the supply curve is increasing. Again this is by design.

10 years ago we said that the deflationary aspect will cause hoarding which will result in a situation where it isn't used causing a sudden unpredictable economical collapse. We were right about the hoarding but wrong about the collapse. What we didn't predict was human nature. When something increases tenfold in a short time most people react by selling as nobody can predict that it will increase a hundred or a thousand fold so they take their good fortune and leave. That's why there are so few initial whales and so many thousand Bitcoins for a pizza stories. This means there will always be a free supply even with hoarding.
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"I know perfectly well what in/deflation is. Inflation is usually achieved by increasing the money supply but it's not the only way. It's actually a product of the money supply divided by the population." Oh god now I read it all, cool story. If this crazy logic were true it must be a miracle that stagnated or decreasing population countries hit hyperinflation ie. Worldwar 1,2, great depression. Someone should tell them to stop hiding their population booms.

I will just giveup trying to explain to you, go google or just dont understand.

It is deflationary ONLY cause of max supply being known, its not hyper deflationary as you tried to state like incoherent monkey.

Its inflationary right now up until the last of the max supply is hit because guess what each year there is more coins being introduced to the current available coins before we hit the max limit. The inflation is set to certain amount and decreasing year by year , all predetermined. I know this is probably too much for you to understand as in "How can something be deflationary and inflationary at the same time". Fiat is always inflationary because there is no hardcap and year on year the inflation rate is unknown. Bitcoin is deflationary only based on knowing that there is a maximum supply limit but year on year to reach that supply limit the circulating supply is actually inflationary because year after year we have a known inflation on the circulated available coin supply.

Just because we have a cap of 100 coins ever and we start with 1 coin and there is 2 new coins out of the 100 coins added each year DOES NOT mean from the start a coin is deflationary.

Again you have NO CLUE how deflation and inflation is playing a roll with current supply. LULZ at your $1-$20k example in previous post. Just don't try even more, I expect these kind of retardism from people like you as I have noticed in the very first post we bumped heads that you are one of those clueless crypto "Enthusiasts".

Let me leave you with this write up on how Bitcoin is inflationary and deflationary depending on how you approach it and time in its current lifecycle. The logic would fly over your head but read it a few times or google for additional articles covering this subject.

https://medium.com/@jimpo/bitcoin-is-not-deflationary-425ab94be19e
 
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Oh dear lord. You really don't know anything. "Its inflationary right now up until the last of the max supply is hit" ROFLOL stopped reading there.
 
LOL so it's not deflationary because some idiot on Medium claims it isn't.
 
Swa said:
LOL so it's not deflationary because some idiot on Medium claims it isn't.
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I will try and explain it to you in slow mo.

The fact bitcoin got a hardcap makes it deflationary long term. It is inflationary until it reaches the hardcap year on year because more coins get introduced into circulation year after year with a consistent known decrease for the inflation rate of circulating coins.

It really can't be this hard for you to understand. Either you are blatantly stupid or just refusing to learn anything.

Inflation is the introduction of additional coins into the circulation and guess what Bitcoin until it reaches the 21 million hardcap keep adding more coins to the circulation due to mining which means it is inflationary right now and over time as I attempted to teach your low IQ mind this inflation rate will drop all the way down to 0.

Again let me quote the factual predetermined inflation rate of bitcoin eventually even your low IQ mind should grasp the concept.

Year #bitcoins Inflation per annum
2009 1,624,250 -
--------------------------------------------------
2010 5,020,250 209.1%
2011 8,001,400 59.4%
2012 10,733,825 34.1%
2013 12,199,725 13.7%
2014 13,671,200 12.1%
--------------------------------------------------
2015 15,029,525 9.9%
2016 16,075,400 7.0%
2017 16,750,400 4.2% (estimate)
2018 17,425,400 4.0% (estimate)
2019 18,100,400 3.9% (estimate)
--------------------------------------------------
2020 18,575,200 2.6% (estimate, halvening)
2021 18,912,700 1.8% (estimate)
2022 19,250,200 1.8% (estimate)
2023 19,587,700 1.8% (estimate)
2024 19,806,350 1.1% (estimate, halvening)
--------------------------------------------------
2025 19,975,100 0.9% (estimate)
2026 20,143,850 0.8% (estimate)
2026 20,312,600 0.8% (estimate)


Now few more discussions on why bitcoin is inflationary(during the mining process of introducing more of the coins into circulation) and deflationary(while it moves closer to reaching the predetermined hardcap of 21million)

https://fee.org/articles/why-bitcoi...en-though-its-purchasing-power-is-increasing/

Here is a long reddit thread where the same logic is disseminated for low IQ individuals such as yourself ->
https://www.reddit.com/r/Buttcoin/comments/9jetrh

Here is one additional inflation rate chart for Bitcoin -> https://charts.bitcoin.com/btc/chart/inflation

A bit more reading for you -> https://cointelegraph.com/news/worlds-best-performing-currency-bitcoin-inflation-rate-drops-to-4

And some more -> https://medium.com/diviproject/infl...-model-why-inflation-can-be-good-64b7ee2b3626

And some more -> https://bitcoinexchangeguide.com/bitcoin-inflation-deflation/

And some more(this includes inflationary comparison between BTC and ETH) -> https://bitcoinexchangeguide.com/a-comparison-between-ethereum-and-bitcoins-inflationary-price/

Your notion that Bitcoin is deflationary is just a side effect of hanging onto misconceptions like every other crypto noob. The biggest selling point for Bitcoin and other crypto with a predetermined hardcap is that it works with a decreasing inflation rate that is known and can be accounted for from the start if you wish.

None of this should be required reading for anyone with half a brain and willing to think it through by them self but I am acutely aware that people like you litter the internet so lets hope you learn something new today.
 
John Tempus said:
I will try and explain it to you in slow mo./snip
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Your attempted insults aside, you're wrong. I'll attempt this one last time. Inflation is generally caused by the increase in supply of money per capita. It's multifactorial and NOT just the increase in supply as you think. The supply of Bitcoin per capita has on average continually decreased even with a small increase in supply. That usually results in the deflation we have seen.

Idiots on Medium won't change reality no matter how much you want them to. One idiot on there claimed that the value of BTC is irrelevant. LOL. Funny that you don't link to a wikipedia article or any reputable financial site. Here you go https://en.wikipedia.org/wiki/Inflation. Nowhere is there a definition of inflation as the increase of money.
 
saor said:
Dude, did swa eat your biscuits or what's with all the snark & ****?
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He is clueless no matter how much I try and explain things to him. Yes he also ate my biscuits.

Case in point he is still arguing against the facts in his post just before your comment.

No hope in hell he is understands the concepts because he can't get his thick skull around this simple concept.


Swa said:
The supply of Bitcoin per capita has on average continually decreased even with a small increase in supply. That usually results in the deflation we have seen.
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You are clearly purposefully delusional at this point. Supply of Bitcoin in circulation per capita is year on year increasing set aside global population increase faster than the inflation of BTC year on year ie. available BTC in circulation.

Now you might draw some sort of strawman using spaghetti claiming that its not inflation because world population increase more than the supply of BTC available in circulation and to that I will just laugh so lets not go there.

The only thing I can hope you might realize looking through your peppermint stained glasses is that you could agree that right now circulation of available BTC is increasing at a set percentage each year and because the circulation each year is increasing that is a measure of inflation occurring in the circulation supply of BTC.

The only deflation if you want to GRASP that far is that there is a predeterimed decrease year on year and more so each halving with regards to BTC in circulation so if you want to really grasp at deflation then you could argue that because inflation is decreasing there is a known deflation of inflation year on year.

Have fun.
 
Just read the ****ing wiki article. And no, supply of Bitcoin per capita is not increasing, it's decreasing as the user base is increasing more than the supply. Seems you don't know what per capita means either. Sorry but it seems I can't educate you here. Go read some real financial sites first.
 
Still dumping which is fine as it allows us to accumulate and brings in the volatility. My only concern now is it dumping too far. If we end up going too low to sub $3k levels the whole market dynamic starts to shift. If that happens we might take a couple years to recover and get back to the $10k level. So the best scenario for the market is a quick flash dump V-shaped bottom without spending too much time at these $4k and lower levels. Otherwise it will end up stuck in a rut.

VZtJJahR
 
I think BTC should recover from these dumps at some point as long as long term holders keep holding and don't panic. If too many start loading their coins onto exchanges, the supply can suddenly increase very quickly which will make the price stabilize at lower levels. Apparently only around 10% of BTC is on exchanges and traded regularly. The other 90% is stored offline.
 
I think I may have found what Bitcoin's bottom will be ... PS, think i suggested someone here wait till ETH is about $110 and now its at $112 ... (walks about with chest pumped out) :cool:

www.tradingview.png
 
phly said:
I think I may have found what Bitcoin's bottom will be ... PS, think i suggested someone here wait till ETH is about $110 and now its at $112 ... (walks about with chest pumped out) :cool:

View attachment 582914
Click to expand...


I think so too... I've been short on ETH since $500 levels and have just closed all my positions. Time to go long! Entered @ $113. Stop loss @ $99.
 
Should have saved my cash and not spend on Black Friday because today seems that Crypto has the real deals. BTC at like 75% off and alts at like 80% and even 90% off.
 
One good thing about the low prices is the Luno fees don't feel as bad (as long as the volatility remains). So I don't feel like I'm screwing myself over by being a taker on the exchange.
 
I have learnt to overlook Luno prices as I just use it to transfer the BTC to an actual exchange I will trade on.
 
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