Post
Topic
Board Bitcoin Discussion
Re: A cryptostar in a galaxy far far away
by
adzino
on 22/02/2020, 14:16:20 UTC
-snip-
3.I don't see any correlation between fiat money supply and the exchange rate of the coins. Again, increasing fiat money supply would end up being a disaster. Good luck keep up with the inflation with the increase of sudden money supply.
-- fiat money supply generally increase the total fiat income of the whole planet, and that will raise the exchange rate of cryptocurrency since the buyers are getting more fiat money each year
Actually this thought just came over me when I  saw this a few days back:
-snip-
You probably are not thinking right. The price of Bitcoin/cryptocurrenies might increase, but you "won't" be able to buy "more". The sudden increase of fiat money will cause the aggregate demand to increase (a shit on the right curve takes place) but the amount of "goods" (output) remains the same. This means that more people will be chasing the same amount of goods, thus causing the price of the goods to increase at an abnormal rate. This ultimately means that you won't be able to buy more instead, there is a chance of you being able to buy even less than  before. In the long run its just going to cause inflation.