Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Norway
on 14/09/2015, 10:03:13 UTC
Economists have know for 500 years that a currency must have some inflation, otherwise people will hoard it and it will not be available for use as a currency.  

During the past 500 years, there were long periods of effectively zero inflation where economies boomed. In the industrial revolution in Britain, for example.

Also, I don't think there was such a thing as an economist 500 years ago.

Gold and silver coins kept the price for a pint steady as a rock for hundreds of years.

So steady
Until 1900: gold/silver standard. 1900-1933: gold standard.
We were talking about inflation during the industrial revolution.

Check how small the inflation was during this extreme growth period in western financial history.

Enter the years 1750 and 1900 (150 years) on this page:
http://www.bankofengland.co.uk/education/Pages/resources/inflationtools/calculator/flash/default.aspx

EDIT: It's a smaller inflation in 150 years than from 1993 to 2014!

EDIT2: The average annual inflation rate in UK from 1265 to 1900 was 0.35% Source: http://www.measuringworth.com/inflation/