Quote from: evoorhees on July 18, 2011, 04:19:13 PM

Quote from: netrin on July 18, 2011, 04:01:23 PM

Bitcoins has seen 100%, 50%, and now 30% annual monetary inflation. Dollars have seen 300% M0 monetary inflation with the quantitative easing in 2008-2009. Currently this month, bitcoins are price inflating (currency devaluation) rapidly against the dollar (10% for the past week), but over the years, bitcoin has deflated 80% monthly against the dollar on average (doubled every ~50 days).

Bitcoin has never deflated - it is always inflating at a diminishing rate. Its price has fallen. Price changes =/= inflation or deflation. Don't confuse a symptom of inflation (rising prices) with inflation itself (increase in the money supply).

Bernanke does this all the time and it drives me crazy. He says, "the rising costs of food and energy are driving inflation higher." Nonsense. HE is driving inflation higher, and as a result food and energy costs are rising. It's like 1984 word-isms. War is peace. Freedom is slavery. Debt is stimulus Wink

I am careful to distinguish between 'monetary xflation' and 'price xflation'. I have not confused terms; You have. I'm sure you've read a lot of Austrian, but perhaps you should familiarize yourself with the mainstream (aka the century in which you live), if only to know thy enemy, if you will:

On the Origin and Evolution of the Word Inflation
by Michael F. Bryan
http://www.clevelandfed.org/research/commentary/1997/1015.pdf