Silk Road forums

Discussion => Security => Topic started by: Audioslave on July 18, 2012, 01:05 am

Title: Freaking out over btc inflation
Post by: Audioslave on July 18, 2012, 01:05 am
http://bitcoincharts.com/charts/mtgoxUSD#rg360ztgSzm1g10zm2g25zcv
this shows that in a couple of months, BTC will inflate by about double...i was planning on buying some a few days ago when they were steady at about 7.6 and they're now 8.85! Should i buy some now and wait to purchase until it inflates more or will it drop?
Title: Re: Freaking out over btc inflation
Post by: Audioslave on July 18, 2012, 01:08 am
and everything i wanted to order, their BTC price hasn't changed!!!
Edit: k so the MDA i wanted just went down a couple BTC, but also a lot of other things are just no longer listed
Title: Re: Freaking out over btc inflation
Post by: MasterS on July 18, 2012, 01:19 am
At rates like this I only buy the amount of BitCoin I need. When it is lower I buy excess. It's like stocks but more volatile thus more fun haha.
Title: Re: Freaking out over btc inflation
Post by: self on July 18, 2012, 01:20 am
better than the stock market!
Title: Re: Freaking out over btc inflation
Post by: Hungry ghost on July 18, 2012, 05:46 am
Just gonna point this out as it seems to be a common error:

      Inflation is where a currency loses value (compared to goods and services) over time.

What the BTC is experiencing is deflation.

The BTC is actually designed to deflate over the long term due to the limited number that will ever be produced, filling a increasing demand. That's why it can be split into such tiny fragments. The theory is that eventually we will be using 0.1, and 0.01 and 0.001 BTC.

I don't think the current rise is part of this trend tho.
Title: Re: Freaking out over btc inflation
Post by: Eatshitanddie69 on July 18, 2012, 09:13 am
don't buy them .....
Title: Re: Freaking out over btc inflation
Post by: eJ3k1 on July 18, 2012, 10:49 am
Just gonna point this out as it seems to be a common error:

      Inflation is where a currency loses value (compared to goods and services) over time.

What the BTC is experiencing is deflation.
I had to read that part a few times too, but OP says it correctly. Because BTC has been experiencing so much deflation (rise in price), he fears that there will be big inflation (dropping price) coming soon. Which is indeed to be expected.

So he is actually scared for the coming inflation, rather than the current deflation.
The BTC is actually designed to deflate over the long term due to the limited number that will ever be produced, filling a increasing demand. That's why it can be split into such tiny fragments. The theory is that eventually we will be using 0.1, and 0.01 and 0.001 BTC.

I don't think the current rise is part of this trend tho.
Yes that is indeed true. However I don't think we will ever really do transactions in microBTC. If digital currency ever gets widely accepted, alternative digital currencies will be created. BitCoin will probably still be the most prestigious original crypto-currency, and therefore be valuable. But I don't think we're ever gonna see $1000 per BTC.
Title: Re: Freaking out over btc inflation
Post by: sundhara on July 18, 2012, 01:06 pm
Me neither - because before it gets that high, I think we will be using micro-BTC's. :B
Title: Re: Freaking out over btc inflation
Post by: guysmiley on July 18, 2012, 02:03 pm
i would only buy BTC right now if I was planning to place an order right away.  in fact, thats usually how i do it, but since i typically buy a couple extra coin than what I actually need i have a small surplus in my wallet.  if it keeps rising I may be able to get a quarter ounce of dank weed for coin that I payed 50 bucks for!  psyched about this :)

but i hear you guys, its nerve wracking, and I too wish it would just stay constant.  at the rate its been climbing its almost guaranteed to drop just as hard in a few weeks time.

just buy em if you need em, don't try to "play the market."  there's much better ways to gamble/invest your money
Title: Re: Freaking out over btc inflation
Post by: MasterS on July 18, 2012, 02:34 pm
Better ways to invest yes but the gamble aspect depends on the enjoyment you get out of it ^_^
Title: Re: Freaking out over btc inflation
Post by: LouisCyphre on July 18, 2012, 02:37 pm
This is pure speculation, if you'll pardon the pun, but since Kim Dotcom was told about Bitcoin in response to his questions about payment methods that can't be seized, the increase in value could be the result of his (and similar groups) moving into the market.  Plus there has been increased press coverage of the currency so it could just be traders diving into it again like they did last year when the price got up to $30 or so.
Title: Re: Freaking out over btc inflation
Post by: MasterS on July 18, 2012, 03:22 pm
Well then I hope those investors will enjoy the extreme drop that happened last time ^_^ I know I will because they will all get scared and when it drops so low and I'll be getting a surplus.  8)
Title: Re: Freaking out over btc inflation
Post by: Audioslave on July 19, 2012, 10:34 pm
well i better spend the shit out of my BTCs
Title: Re: Freaking out over btc inflation
Post by: MasterS on July 20, 2012, 01:07 am
I'm glad I have no idea who falko is, get updates for kiddy porn, nor want to imagine 90% pedos. **shudders**
Title: Re: Freaking out over btc inflation
Post by: QwertAnon on July 20, 2012, 01:23 am
i like the current trend. btc getting more valuable by the day.
Title: Re: Freaking out over btc inflation
Post by: jameslink2 on July 20, 2012, 02:10 am
i like the current trend. btc getting more valuable by the day.

Dropped like a rock today! from 9.10 to 7.60  :o

I am enjoying the roller coaster of bitcoin. Sell product when it is low and hang on to it, sell bitcoin when it is hi and make bonus cash. lol
Title: Re: Freaking out over btc inflation
Post by: Purplesky on July 20, 2012, 09:13 am
Its fun been studying it since 2.9 BTC GBP, last night it dropped but it has increased again but not no where what the highest price was recently which i saw it sell at one point for 6.4 BTC GBP =) Lets see what happens!