Quote from: eshaal.khan on October 01, 2016, 08:16:53 PM

Wow its such a good explanation about BTC in terms of inflation and deflation.
a general increase in prices and fall in the purchasing value of money is called inflation but bitcoin we use only in online system than how we know that price id less or greater .

Calling the "general" increase or fall in prices "inflation" is just a misuse of the term.
The fact so many in the press and in the university / professional fields misuse this term show just how low is the understanding of economics.
Using the wrong terms end always in misunderstanding and fuzzy logic arguments.

We can measure the changing in the money base with a precise and not disputable number;
E.G. there are so many gold coins, so many bitcoins tokens, so many silver coins, so many dollar bills of with various values printed on.
And this can be measured consistently during the years (a gold coin coined yesterday is interchangeable with a gold coin coined today and so with printed USD, etc.).

The "general" level of price is measured using a basket of always changing goods and service.
In fact there are many baskets, one for consumers, one for industries, one for the group you are interested in (in fact you can measure different values in different places using the same type of currency for the same basket).
And the same basket have changing goods and services measured, because the services and goods offered by the market change with the time.
I remember a time, in Italy, when the inflation number was published by ISTAT (a government branch dedicated to statistics) and the number jumped up because they selected the tickets sold by two teams just promoted in an higher league to substitute the tickets of the teams demoted in the lower league at their places. And the team managers decided a large increase of the ticket's price that month.
Had they selected a different team the value would be different that month.
The same is done with goods: if you put an iPhone in the basket, and the next year the same model is no more produced, you can substitute it, but it is not the same thing you are measuring.
The same is for meat. If the law change and the meat must be produced in a cheaper way or in a more costly way, this will impact the price but will have nothing to do with the quantity of money.
Same for cars, gasoline (it changed a couple of time in my life), drugs, etc.

And some goods and services are notoriously kept out of these baskets: fuel, housing prices usually.