Post
Topic
Board Economics
Re: Bitcoin and Inflation
by
Barbut
on 30/12/2018, 07:43:44 UTC
Only a controlled economy can be spared from inflation (though this is also debatable). In an open market like we are enjoying right now, inflation is a matter of fact and is part of the reality of life. Nobody is immune from the power of inflation.

Inflation happens when when the price of goods/services rise up and the money you are holding has less purchasing power like it has before. When inflation rate is going up what is happening is that our money's purchasing is going down. For example, if one bar of soap can cost $1 and the inflation is 5% then there is a possibility that soon the cost of that soap can be $1.05 or maybe what the soap manufacturer would do is reduce the quantity and quality side so that the price remains but the same product is not there anymore.

Now, talking about inflation, I am wondering if Bitcoin can be an anti-inflation agent or will it even induce inflation to a higher level?

There have been many discussions -- continuing discussions in fact -- on this subject and still there is no definite answer maybe because Bitcoin is still relatively new and theories/speculations are still waiting for validation.

That's is the real strategy of manufacturer when the inflation are affected to all commodity they are not go with it. they would really stay the normal and a usual equivalent but they will adjust the little  quantity and of course not too much far the quality to prevent less orders. for Bitcoin inflation is because of limited stocks. many people are holdings and set aside for future investment.
What is inflation in reality? Before with one dollar you could more things, now with one dollar you can`t buy  one bubble gum. Bitcoin have limited amount of bitcoins in circulations, can that be changed? Discussion is only about that, if maximum number of bitcoins stays the same there cant be inflation. Now you can read who and how bitcoin can be changed, who needs to agree about it, and about entire process how changes can be made on the bitcoin network. In same time you will learn what is decentralization.