Quote from: whitslack on December 13, 2012, 03:08:08 PM

A clarifying note: These charts show the monetary (supply) inflation of Bitcoin. They bear no relation to price inflation, which is an entirely distinct phenomenon. When Austrian economists say "inflation," they're typically referring to monetary inflation, whereas Keynesian economists are typically referring to price inflation.

Also, please note that the top axis ("Year") on these charts is approximate, based on the scheduled block generation rate of one block per 10 minutes. The actual block generation rate has averaged a bit faster than this, due to the perpetually increasing hash rate, so we're already a little bit further progressed than the labels along the top axis would suggest. This doesn't mean there will be any more than 21M bitcoins; it only means that we'll reach the end of supply generation a little bit sooner than we would have if the hash rate had always held constant.

Bitcoin Inflation 4x3.pdf (8"×6") | Bitcoin Inflation.pdf (8½"×11")

Bitcoin Inflation logarithmic.pdf (8"×6")

Permission given to use and reproduce freely.

So judging by these two pictures it seems we have already hit the big spike in terms of Bitcoin and inflation?

I know we went from 50, to 25 then to 12.5 which is a huge leap but I would imagine the inflation rate is only good when compared to the dollar.

So Bitcoin would be deflating at the same time fiat currency is inflating which would reflect more so in price than just a simple deflation of Bitcoin.