Deflationary Currency, Bitcoin, and Just a Store of Value ...

Bitcoin - The Currency of the Internet

A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome.
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SATS is a decentralized deflationary privacy token

SATS is a failed project that never got off the ground due to either ineptitude or pure laziness on the part of the failed developer.
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BitcoinSoV

BSoV: The first mine-able, deflationary, open sourced, decentralized cryptocurrency Hedge to act as a Store of Value against the monetary inflation of fiat currency. BSoV is mined using a simple Keccak256 (Sha3) algorithm. There is No ICO, No Pre-mine, and No Governance. This allows for BSoV to be completely decentralized and fairly distributed. With each transfer of BSoV tokens, 1% of the total transaction is burned forever.
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Bitcoin Deflationary Spiral (x-post from /r/Bitcoin)

submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

Stop Calling Bitcoin Deflationary.

submitted by cointastical to Bitcoin [link] [comments]

As the Fiat system keeps producing freshly minted, "free" money, Bitcoin's deflationary nature causes it to become stronger and stronger.

As the Fiat system keeps producing freshly minted, submitted by Ichi_MokuM to Bitcoin [link] [comments]

Is Bitcoin deflationary? And if so is that good?

I’m a BTC fan and holder, my concern is that people won’t use it for commerce because they will fear it will be worth more in the future. Me for example, I rarely spend my BTC, I save my BTC and spend my fiat using my credit card that rewards me 2%. Unless merchants start to discount BTC transactions over CC, I don’t see the adoption unless you are living hand to mouth. And if you are living hand to mouth, you will keep your money in Fiat until you need to use the BTC network.
I welcome anyone’s opinion and I hope I’m wrong
submitted by kentroccas to Bitcoin [link] [comments]

Bitcoin Deflationary Model At it’s Finest! Simply Beautiful

Bitcoin Deflationary Model At it’s Finest! Simply Beautiful submitted by VisionaryCrypto to Bitcoin [link] [comments]

As the Fiat system keeps producing freshly minted, "free" money, Bitcoin's deflationary nature causes it to become stronger and stronger.

As the Fiat system keeps producing freshly minted, submitted by Ichi_MokuM to CryptoMarkets [link] [comments]

The Cryptoconomy Podcast: CryptoQuikRead_314 - Stop Calling Bitcoin Deflationary [Conner Brown]

The Cryptoconomy Podcast: CryptoQuikRead_314 - Stop Calling Bitcoin Deflationary [Conner Brown] submitted by BashCo to Bitcoin [link] [comments]

Bitcoin Deflationary Model At it’s Finest! Simply Beautiful

Bitcoin Deflationary Model At it’s Finest! Simply Beautiful submitted by xvult to Libertarian [link] [comments]

Does Bitcoin's deflationary nature discourage spending? Would this hurt the economy if Cryptos were adopted by the masses?

I was just thinking that since Bitcoin is deflationary, doesn't that discourage spending? Once no more bitcoin can me mined, the value of one Bitcoin will become more and more valuable as the demand increases due to mass adoption. Wouldn't this encourage people to just hold their Bitcoin instead of spending money and growing the economy? Seems like that would have a bad effect on the economy? Idk. I'm brand new to crypto currencies, and I have limited knowledge of economics, so I could be completely wrong here, just a thought I had. Thoughts?
submitted by Werdna_I to Bitcoin [link] [comments]

Bitcoins deflationary nature doesn't matter if forks continue to happen.

There is a limited supply of bitcoins but there's an essentially unlimited supply of cryptocurrencies that weaken bitcoin. Imo coinbase adding BCash is just the beginning of the hits BTC is going to take from rival and copycat currencies as Crypto investments continue to flood in.
submitted by MehSighAh to Bitcoin [link] [comments]

Is nobody really worried about long term negative affects of current Bitcoin deflationary cycle?

In lights of the recent events of the high Bitcoin/USD exchange rates and the absurdly high numbers in case of of trading volumes, mainstream media is picking up on Bitcoin and the bag holders obviously love it.
Then earlier today a filthy statist wrote a blog post about price manipulations on Bitfinex and possibly GDAX. Which got me interested in the actual numbers of Bitcoin traded. It took me a bit longer than expected to get the raw number of Bitcoins traded per day because the main Bitcoin statistics websites only list the volume in US-Dollar. What I found was very surprising.
The actual number of traded Bitcoins seems to be drastically lower than in the end of 2016 – even a magnitude lower. While the last few weeks were pretty stable, 2016 was a trading fest in terms of raw Bitcoins moved. It seems to be correlated with the price, because just as Bitcoin broke through the $1,000 mark the volume collapsed.
https://data.bitcoinity.org/markets/volume/2y?c=e&r=week&t=a
https://data.bitcoinity.org/markets/price/2y/USD?c=e&r=week&t=l
It means we have a deflationary spiral. As the prices of goods and services decrease relative to bitcoin. IE 1 BTC =1 widget a year ago, .5 BTC =1 widget today, people tend to start hoarding. Why cash out for a Ford Focus today when I can get a Ferrari tomorrow? Once that happens it starts this self-fulfilling prophecy, and this is what you get. An economy whose "currency" is completely detached from the underlying economy.
The problem is in this ecosystem is that you have this inflationary period. New coins are constantly coming into creation, those coins have to be sold since mining is a zero sum endeavour, so that is acting against the price. However right now the demand is outpacing the supply, because like I said above, everyone is hoarding. As price increases the quantities demanded start to decrease, in this case the quantity decrease is more of a restriction on how much disposable income bitcoiners can throw at it. Eventually bitcoiners will be priced out from purchasing all but the smallest fractions of coins, but the supply will continue to increase consistently. Eventually this will push the price down and people will start selling to lock in gains. Now you have too much supply and not enough demand, so down we go. Money on the gold standard did this exact same boom/doom pattern. This is where the huge crash will come into play.
And all of this assumes the number is not just some bullshit made up number. I'm not confident that the price is not manipulated by exchanges et al. So we could have a price that is total fucking bullshit.
I do find it rather hilarious for bitcoiners to hand wave off deflation because "people don't do that, they have to eat", and yet can not see the bitter irony starring right back at them.
Thoughts, comments? Feel free to tell me why I'm wrong.
submitted by AnythingForSuccess to Bitcoin [link] [comments]

Inflation vs Deflation: A Guide to Bitcoin's Deflationary Nature

Inflation vs Deflation: A Guide to Bitcoin's Deflationary Nature submitted by koocer to Bitcoin [link] [comments]

Is nobody really worried about long term negative affects of current Bitcoin deflationary cycle?

In lights of the recent events of the high Bitcoin/USD exchange rates and the absurdly high numbers in case of of trading volumes, mainstream media is picking up on Bitcoin and the bag holders obviously love it.
Then earlier today a filthy statist wrote a blog post about price manipulations on Bitfinex and possibly GDAX. Which got me interested in the actual numbers of Bitcoin traded. It took me a bit longer than expected to get the raw number of Bitcoins traded per day because the main Bitcoin statistics websites only list the volume in US-Dollar. What I found was very surprising.
The actual number of traded Bitcoins seems to be drastically lower than in the end of 2016 – even a magnitude lower. While the last few weeks were pretty stable, 2016 was a trading fest in terms of raw Bitcoins moved. It seems to be correlated with the price, because just as Bitcoin broke through the $1,000 mark the volume collapsed.
https://data.bitcoinity.org/markets/volume/2y?c=e&r=week&t=a
https://data.bitcoinity.org/markets/price/2y/USD?c=e&r=week&t=l
It means we have a deflationary spiral. As the prices of goods and services decrease relative to bitcoin. IE 1 BTC =1 widget a year ago, .5 BTC =1 widget today, people tend to start hoarding. Why cash out for a Ford Focus today when I can get a Ferrari tomorrow? Once that happens it starts this self-fulfilling prophecy, and this is what you get. An economy whose "currency" is completely detached from the underlying economy.
The problem is in this ecosystem is that you have this inflationary period. New coins are constantly coming into creation, those coins have to be sold since mining is a zero sum endeavour, so that is acting against the price. However right now the demand is outpacing the supply, because like I said above, everyone is hoarding. As price increases the quantities demanded start to decrease, in this case the quantity decrease is more of a restriction on how much disposable income bitcoiners can throw at it. Eventually bitcoiners will be priced out from purchasing all but the smallest fractions of coins, but the supply will continue to increase consistently. Eventually this will push the price down and people will start selling to lock in gains. Now you have too much supply and not enough demand, so down we go. Money on the gold standard did this exact same boom/doom pattern. This is where the huge crash will come into play.
And all of this assumes the number is not just some bullshit made up number. I'm not confident that the price is not manipulated by exchanges et al. So we could have a price that is total fucking bullshit.
I do find it rather hilarious for bitcoiners to hand wave off deflation because "people don't do that, they have to eat", and yet can not see the bitter irony starring right back at them.
Thoughts, comments? Feel free to tell me why I'm wrong.
submitted by AnythingForSuccess to btc [link] [comments]

Why is Bitcoin deflationary?

After doing some research and analysis, my conclusions are:
  1. halving of block rewards every 4 years. If we assume buy demand for Bitcoins doesn't change much, then supply decrease will lead to market price increase, eventually leading to a price bubble as people try to buy their share of Bitcoins before others get a chance.
  2. loss of Bitcoins due to lost private keys, causing supply to permanently decrease. As some buyers won't be able to liquidate their share of Bitcoins, causing downward price pressure to decrease.
What are the other factors?
submitted by Yurion13 to Bitcoin [link] [comments]

Inflation vs Deflation: A Guide to Bitcoin's Deflationary Nature

Inflation vs Deflation: A Guide to Bitcoin's Deflationary Nature submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Why is Bitcoin deflationary? /r/Bitcoin

Why is Bitcoin deflationary? /Bitcoin submitted by SimilarAdvantage to BitcoinAll [link] [comments]

Is Bitcoin deflationary? And if so is that good? /r/Bitcoin

Is Bitcoin deflationary? And if so is that good? /Bitcoin submitted by HiIAMCaptainObvious to BitcoinAll [link] [comments]

Will Altcoins Undermine Bitcoin's Deflationary Characteristic?

When people talk of deflation and Bitcoin, they mean that you need to pay fewer and fewer bitcoins for the same things because the demand for bitcoin grows much quicker than the supply.
We generally assume this will continue and when people talk of a price of $100k per bitcoin or similarly enormous sums, they implicitly assume that Bitcoin will be the only one. You arrive at these sums by taking all the use-cases, industries and functions that Bitcoin can do better than the current financial system, you calculate amount of money that will be needed as a consequence, take into account velocity, divide by the number of bitcoins and voila: We have a super-high price and we’re all rich:)
But there is one thing that is generally ignored. The cryptocurrency infrastructure can handle any of the cryptocurrencies similarly well. For a provider like BitPay it would (presumably) be very easy to switch to Litecoin, Dogecoin and Whatevercoin with ease. Even more importantly, they could accept different cryptocurrency simultaneously. (As long as a liquid market exists for them.) In the future payment providers, wallets and other services will handle multiple currencies simultaneously.
This could, for example, mean that you’ll need ‘a’ cryptocurrency to do remittances cheaply, but any number of them would do the job.
It seems, this could destabilize the deflationary characteristic of Bitcoin. If cryptocurrencies can be substituted for each other, then we need to think of the money supply not in terms of Bitcoin but in terms of cryptocurrencies and obviously the supply is no longer limited.
The key question this revolves around is how large are the network effects? How much more utility does one currency vs many currencies provide? Currently, you can’t do much with other cryptocurrencies so there are strong network effects. But if services make seamless, cheap and instantaneous exchange possible between currencies (and I think they will) these effects will decrease.
Am I correct? I would love to hear some thoughts and scenarios about how this will play out.
Note: - These concerns were mentioned by several people in the recent Goldman Sachs report on Bitcoin: http://www.scribd.com/doc/212058352/Bit-Coin. I highly recommend reading it. While it’s critical, it’s well-written and thoughtful. - We also discussed this question on our last podcast episode (Epicenter Bitcoin) with Sebastien Couture and Jonathan Levin of Coinometrics: https://soundcloud.com/epicenterbitcoin/eb-011 (The relevant discussion starts around 1h24m)
submitted by crainbf to Bitcoin [link] [comments]

Why Bitcoin's Deflationary Critics are Not Even Wrong

Why Bitcoin's Deflationary Critics are Not Even Wrong submitted by tr8 to Bitcoin [link] [comments]

Is nobody really worried about long term negative affects of current Bitcoin deflationary cycle? /r/Bitcoin

Is nobody really worried about long term negative affects of current Bitcoin deflationary cycle? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Why isn't Bitcoin deflationary?

Hi all,
One of the big arguments against Bitcoin is the fact that there is only a limited amount of Bitcoins that will ever exist, and thus, will cause deflation of any economy that uses it.
Can someone explain, in a simple detail, why this is not true (if indeed, it isn't true)?
Thanks
-- redmage123
submitted by redmage123 to Bitcoin [link] [comments]

Bitcoins deflationary nature doesn't matter if forks continue to happen. /r/Bitcoin

Bitcoins deflationary nature doesn't matter if forks continue to happen. /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Deflationary currency Cryptocurrency Bitcoin Asset Bench Academy #kryptokon Bitcoin Q&A: Divisibility and deflationary monetary policy Is Bitcoin Deflationary - Should You Hodl Bitcoin or Gold? Is Bitcoin deflationary? Bitcoin Q&A: Lost coins and the deflationary experiment

However, we know that bitcoin is deflationary, i.e. product prices denominated in bitcoin went down by a lot in the past nine and a half years. Knowing this we can say P went down (decreased), the only explanation of which is the Y went up significantly enough to offset the increase in money supply. Another explanation is the V going down significantly (offsetting the change in M) and thus ... Deflationary spiral is an economic argument that proposes that runaway deflation can eventually lead to the collapse of the currency given certain conditions and constraints. It is a common criticism made against the viability of Bitcoin.The ‘deflationary spiral’ is a real condition that affects the popular fractional reserve backing system. Bitcoin will explode because there is simply not much of it and it will explode because you can buy it, secure it, take it with you, turn it back into money and actually spend it natively at the ... One of Bitcoin’s main narratives is that it will greatly benefit from a period of inflation, whereas fiat money can buy less and less over time, proving the value of scarce assets.. But over the past few weeks, as the macroeconomic outlook has changed, there’s been a serious discussion of an impending deflationary cycle. Deflation meaning that the value of your fiat currency actually ... A deflationary currency is closely related to being inelastic, but we need to look specifically at the deflationary aspects of Bitcoin because conventional economic thought is that “deflation is bad,” and it is — if you’re using debt for money. The reason is that debt-based money, enabled by fractional reserve banking, allows monetary units to “exist in two places at once,” so to ...

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Deflationary currency Cryptocurrency Bitcoin Asset Bench Academy #kryptokon

Let's compare the difference between Fiat currency which is issued by governments and their Central Banks vs Bitcoin. One is inflationary and the other deflationary. Watch this explainer video to ... Bitcoin Q&A: Lost coins and the deflationary experiment - Duration: 16:00. aantonop 14,098 views. 16:00. Andreas Antonopoulos - The Death of Money - PART 1/2 London Real - Duration: 47:53. ... Is Bitcoin Deflationary - Should You Hodl Bitcoin or Gold? Ernie Varitimos. Loading... Unsubscribe from Ernie Varitimos? Cancel Unsubscribe. Working... Subscribe Subscribed Unsubscribe 8.82K ... Deflationary currency Cryptocurrency Bitcoin Asset Bench Academy http://Asset Bench-academy.com/en Deflationary currency A deflationary currency arises when ... Is there potential for centralization through concentration of ownership of bitcoin? Has there ever been a deflationary experiment? Wouldn't people stop spending altogether? These questions are ...

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