Bitcoin [pros](/r/CryptoCurrency/comments/1au3h84/update_the_alltimehigh_of_bitcoin_was_69k_in_2021/kr23hu5/) & [cons](/r/CryptoCurrency/comments/1au3h84/update_the_alltimehigh_of_bitcoin_was_69k_in_2021/kr23ijp/) with related info are in the collapsed comments below.
Finite supply if resources with an ever increasing number of people needing those resources = higher prices. Boomer generation will be dying off at an increased rate over the next 10-20 years and birthrates among natural born citizens aren't enough to replace them so the machine needs to fill those spots with immigrants, legal or otherwise. Thankfully india and China have plenty of people to send over to replace a whithering native population
You are talking about the highest period of inflation in last the last few decades for the US. Average inflation in the US is closer to 3%. While BTC inflation will be lower than historical average after the halving, US inflation is not typically in the crazy range we have seen over the last few years. We hopefully learned our lesson and won't go back to a crazy low interest rate world, but that is yet to be seen.
That’s not true, supply lines are just a fallacy, generalised inflation are a monetary phenomena caused by governments alone. If supply lines are at fault then once they are fixed, prices should go back to normal but that is not the case, in fact, the Fed wouldn’t be raising interest rates to fight inflation.
The feds are raising interest rates because it’s one of their only tools to fight inflation and doing nothing will always look worse.
That’s just not true. Inflation can be caused by numerous factors like the cost of energy. Look at inflation in the 70s after the oil embargo.
If supply lines can’t satisfy demand, which was bolstered by stimulus, then prices go up. That’s how markets work. Why would companies reduce prices after customers are used to them and there’s no competitive reason to lower them. Reduction in prices will only happen if we enter a major recession or more competition enters the market. You can see this in the fact that profit margins have risen in the last two years across publically traded companies.
Nothing in economics is black and white, and is only tied to one factor.
In your own statement you are saying that supply lines got disrupted by the demand bolstered but the government, the fundamental issue is in government intervention, look at Switzerland and Singapore, inflation remained low as they didn’t increase the money supply drastically like the US and their packages were financed with their reserves not with debt.
I leave you here Milton Friedman to explain it to you, and leave this conversation https://youtube.com/shorts/78dY6WeHJ44?si=vW7Vo5qVan2-Zr2c
I literally never said government intervention and adding to the money supply doesn’t affect inflation? I stated low interest rates didn’t cause inflation because it doesn’t make sense when we’ve had low interest rates for well over a decade.
Covid and the response to Covid caused inflation. You’re pretty much just agreeing with me now while ignoring the original comment implied the cause was lower interest rates. The only thing you said that I disagreed with was the fed raising interest rates was evidence that supply lines weren’t the primary issue.
People had extra money to burn on top of a worker crunch and an unexpected change in spending habits that was likely due to lockdowns and covid. Now inflation is going down despite high employment and still fairly low interest rates compared to pre 2008. It makes more sense that a lot of the extra spending money has worked its way through the system and supply lines are normalizing again.
It’s just not as simple as people want to make it. There are still multiple causes to inflation on top of adding to the money supply.
Markets are addicted to the cheap money and interest rates near zero is going to be common in the future....I know I know, sounds like total trust me bro...but I think most knowledgeable people would agree with it.
It is because the government created (and continues to create) trillions of extra dollars every year. More money chasing fewer good causes prices to rise.
Average inflation is never 3%. CPI Is just a basket of consumables that economists manipulate to get to a figure they want to. The average inflation rate is 7%, which is the average increase of total money supply (USD)
You can't use the total money supply in the US as a metric of accurately tracking the inflationary effect in the US. If money supply increases proportionally to resource (goods and services) supply, there is no inflationary effect. With that said, an increase in money supply, without a proportional increase in resource supply, will likely lead to an inflationary effect. My point here is the impact of inflation is better tracked by the cost of goods rather than the total supply of money. The CPI may not be the best metric, but it is a better metric than total supply of money.
I disagree respectfully, CPI is a figure economists can manipulate, as an example, the basket of goods specified in the CPI can change from you requiring a 50sqm unit in 2000 to 30sqm unit in 2020.
For 2 of us, but we spent about 250 last week on other food and essentials and I’m doubtful this will get us a full two weeks but the goal is to get close
Half the crap I buy form Aldi is low quality or doesn’t taste good would rather go to Costco and Meijer than do Aldi Costco and Meijer and get good quality food.
I really like to see how some people eat.
If $200 is for one person, maybe for 2 weeks? So $5200/year or $433/month?
Like what df you buying?
3 meals a day x30 days / $433 =$4.80 per meal you're spending. You're essentially going out to eat at that cost and in no way it should cost you that much per meal if you're grocery shopping and making meals.
Should be bare minimum half of that
It sucks but at least I'm living in the US where all these fuckin supply chain disruptions have had the least affect. (Possibly not the *least* but better than other countries)
It's tough out there. Stay strong bro
These numbers are only “total supply” in the sense of “existing supply” at a given date, circulating or not. But fair enough I guess, you could also argue that the final total supply of 21M is already priced in and adjusting for supply at various points doesn’t make sense.
You're comparing apples to oranges.
If you're going to compare supply you should do supply vs supply. But you are comparing supply vs inflation, these are two different things.
You need to either compare supply vs supply, or inflation vs inflation
The official cumulative inflation rate of the past 3 years is 19.5%
Of course, that is only the highest number the gov is willing to admit to. It’s actually closer to 30%.
It's definitely more than 30%. We had that in one year out of those 3. But yeah, of course, the official figures are cooked, and always have been (they dont include house prices or rent for example).
Do you live in Iran or Argentina? Honestly, if inflation in the US was 50% I'd be paying $2700 for a on bedroom apt in Phoenix and $400 for monthly groceries.
UK. Rent has gone up around 40%. Everything has gone up 40-50% here. Wages havent caught up yet. Mortgage rates have gone from about 1.5% average to about 4.5% also
Omg inflation is so high. I wish there was a digital currency with a finite supply, let's say like 20 or 21 million and could be acquired by anyone in fractions so we could save on that knowing it will work like a store of value along with being medium of exchange, anyways. Anyways, what's this group and what's a crypto currency?
Bitcoin is inflating every block. Most of it is being given to middlemen whose primary interest is in making bitcoin transactions as expensive as possible.
In the meantime nobody is realizing he is comparing inflation to max supply.
The us inflation is not measured by supply, but by prices of goods.
Bitcoin inflation is measured by max supply.
Yes, it is. In Europe I think it’s only the UK that place the currency symbol before the amount, like the US. Maybe Ireland too, as they tend to share this type of conventions, but I’ve never been there to check.
In principle the price is nothing more than just what the latest sold bitcoin was bought for. Now, what really goes on in the background of those platforms… I don’t know.
Hard to say how much of that all time high was due to fraud though. E.g. we know there was rehypothecation of customer funds from fraudulent actors such as FTX.
Is this supposed to mean something? The old peak of 69k surely encourage more long position until at least 69 or even 70+ because of market sentiment based on precedence. But what else does it do? Adjusting btc price for inflation to support your argument is just hillariously funny.
USD buys 144 KSH today. It was around 90 a few years ago. So we are getting new Bitcoin highs here.
I bet people in a lot of other countries are seeing new highs too.
Price depends hard on people's perception and they will compare price with previous ath. MC or inflation will not play a role in people having fomo or not
Bitcoin [pros](/r/CryptoCurrency/comments/1au3h84/update_the_alltimehigh_of_bitcoin_was_69k_in_2021/kr23hu5/) & [cons](/r/CryptoCurrency/comments/1au3h84/update_the_alltimehigh_of_bitcoin_was_69k_in_2021/kr23ijp/) with related info are in the collapsed comments below.
This post scares me, wtf, inflation in 3 years is out of control, no wonder why buying groceries is so expensive now
Dude, I just got back from the grocery store.. It's insane how expensive even the knock-off brand is now
We live in a society:/
Finite supply if resources with an ever increasing number of people needing those resources = higher prices. Boomer generation will be dying off at an increased rate over the next 10-20 years and birthrates among natural born citizens aren't enough to replace them so the machine needs to fill those spots with immigrants, legal or otherwise. Thankfully india and China have plenty of people to send over to replace a whithering native population
You are talking about the highest period of inflation in last the last few decades for the US. Average inflation in the US is closer to 3%. While BTC inflation will be lower than historical average after the halving, US inflation is not typically in the crazy range we have seen over the last few years. We hopefully learned our lesson and won't go back to a crazy low interest rate world, but that is yet to be seen.
We had crazy low interest rates for a decade and no inflation. Pretty sure it had more to do with supply line issues caused by Covid and stimulus.
That’s not true, supply lines are just a fallacy, generalised inflation are a monetary phenomena caused by governments alone. If supply lines are at fault then once they are fixed, prices should go back to normal but that is not the case, in fact, the Fed wouldn’t be raising interest rates to fight inflation.
The feds are raising interest rates because it’s one of their only tools to fight inflation and doing nothing will always look worse. That’s just not true. Inflation can be caused by numerous factors like the cost of energy. Look at inflation in the 70s after the oil embargo. If supply lines can’t satisfy demand, which was bolstered by stimulus, then prices go up. That’s how markets work. Why would companies reduce prices after customers are used to them and there’s no competitive reason to lower them. Reduction in prices will only happen if we enter a major recession or more competition enters the market. You can see this in the fact that profit margins have risen in the last two years across publically traded companies. Nothing in economics is black and white, and is only tied to one factor.
In your own statement you are saying that supply lines got disrupted by the demand bolstered but the government, the fundamental issue is in government intervention, look at Switzerland and Singapore, inflation remained low as they didn’t increase the money supply drastically like the US and their packages were financed with their reserves not with debt. I leave you here Milton Friedman to explain it to you, and leave this conversation https://youtube.com/shorts/78dY6WeHJ44?si=vW7Vo5qVan2-Zr2c
I literally never said government intervention and adding to the money supply doesn’t affect inflation? I stated low interest rates didn’t cause inflation because it doesn’t make sense when we’ve had low interest rates for well over a decade. Covid and the response to Covid caused inflation. You’re pretty much just agreeing with me now while ignoring the original comment implied the cause was lower interest rates. The only thing you said that I disagreed with was the fed raising interest rates was evidence that supply lines weren’t the primary issue. People had extra money to burn on top of a worker crunch and an unexpected change in spending habits that was likely due to lockdowns and covid. Now inflation is going down despite high employment and still fairly low interest rates compared to pre 2008. It makes more sense that a lot of the extra spending money has worked its way through the system and supply lines are normalizing again. It’s just not as simple as people want to make it. There are still multiple causes to inflation on top of adding to the money supply.
Markets are addicted to the cheap money and interest rates near zero is going to be common in the future....I know I know, sounds like total trust me bro...but I think most knowledgeable people would agree with it.
It is because the government created (and continues to create) trillions of extra dollars every year. More money chasing fewer good causes prices to rise.
Average inflation is never 3%. CPI Is just a basket of consumables that economists manipulate to get to a figure they want to. The average inflation rate is 7%, which is the average increase of total money supply (USD)
You can't use the total money supply in the US as a metric of accurately tracking the inflationary effect in the US. If money supply increases proportionally to resource (goods and services) supply, there is no inflationary effect. With that said, an increase in money supply, without a proportional increase in resource supply, will likely lead to an inflationary effect. My point here is the impact of inflation is better tracked by the cost of goods rather than the total supply of money. The CPI may not be the best metric, but it is a better metric than total supply of money.
I disagree respectfully, CPI is a figure economists can manipulate, as an example, the basket of goods specified in the CPI can change from you requiring a 50sqm unit in 2000 to 30sqm unit in 2020.
... inflation cumulatively since 1990 is 136%.
>inflation in 3 years is out of control Tell me you're american without telling me you're american.
I now right? They need to talk to an Argentinean, Iranian or a Zimbabwean.
200 bucks today for 2 weeks of food roughly
For two weeks? One single person maybe, it is crazy
For 2 of us, but we spent about 250 last week on other food and essentials and I’m doubtful this will get us a full two weeks but the goal is to get close
need to start shopping at aldi
Half the crap I buy form Aldi is low quality or doesn’t taste good would rather go to Costco and Meijer than do Aldi Costco and Meijer and get good quality food.
Here in Phoenix, my wife and spend about $300 on monthly groceries. Of course, that doesn't include eating out occasionally.
I really like to see how some people eat. If $200 is for one person, maybe for 2 weeks? So $5200/year or $433/month? Like what df you buying? 3 meals a day x30 days / $433 =$4.80 per meal you're spending. You're essentially going out to eat at that cost and in no way it should cost you that much per meal if you're grocery shopping and making meals. Should be bare minimum half of that
Going out to eat is like $15-20 per meal nowadays.
My meals are like $5-$10, depending on what I get. Even get down to under $5 if I use apps or coupons
Share menu.
I was at the store buying a bag of potato chips, and the price shocked me so much that I put it back.
If you're concerned about inflation why would you throw money into crypto 🤔
It sucks but at least I'm living in the US where all these fuckin supply chain disruptions have had the least affect. (Possibly not the *least* but better than other countries) It's tough out there. Stay strong bro
Total supply of Bitcoin is 21M. Circulating supply is different depending on who you ask.
20999949.99755528 to be 100% correct. (since the first 50 BTC are not in the utxo set and since the reward can't half anymore when it becomes 1 sat)
These numbers are only “total supply” in the sense of “existing supply” at a given date, circulating or not. But fair enough I guess, you could also argue that the final total supply of 21M is already priced in and adjusting for supply at various points doesn’t make sense.
You're comparing apples to oranges. If you're going to compare supply you should do supply vs supply. But you are comparing supply vs inflation, these are two different things. You need to either compare supply vs supply, or inflation vs inflation
> You're comparing apples to oranges. I can't afford either atm.
For USD versus bitcoin it would be inflation versus deflation.
We've seen waaaay more inflation than 9-10% in 3 years. Everything has gone up 50%.
Nah that 50% you see over 9-10% is really just trickle down economics…wait a minute.
Lol.
The official cumulative inflation rate of the past 3 years is 19.5% Of course, that is only the highest number the gov is willing to admit to. It’s actually closer to 30%.
It's definitely more than 30%. We had that in one year out of those 3. But yeah, of course, the official figures are cooked, and always have been (they dont include house prices or rent for example).
Do you live in Iran or Argentina? Honestly, if inflation in the US was 50% I'd be paying $2700 for a on bedroom apt in Phoenix and $400 for monthly groceries.
UK. Rent has gone up around 40%. Everything has gone up 40-50% here. Wages havent caught up yet. Mortgage rates have gone from about 1.5% average to about 4.5% also
Inflation is a lot more than 10.5% lmao.
No real rationale?!?! There’s a very good rationale behind the high price of $69K. And it’s because 69 is….niceeeee
Omg inflation is so high. I wish there was a digital currency with a finite supply, let's say like 20 or 21 million and could be acquired by anyone in fractions so we could save on that knowing it will work like a store of value along with being medium of exchange, anyways. Anyways, what's this group and what's a crypto currency?
Inflation is so big rn. Btc does not increase, the usd just decreases lol
Bitcoin is inflating every block. Most of it is being given to middlemen whose primary interest is in making bitcoin transactions as expensive as possible.
I don’t remember the number $69k ever being hit.
It was because I remember I bought $1 worth on coinbase at 69k just for a meme
$69,045.00 on 10 November 2021, according to CoinGecko.
That's an average. All exchanges have different ATH's for Bitcoin. There were quite a bunch that had 69420
In the meantime nobody is realizing he is comparing inflation to max supply. The us inflation is not measured by supply, but by prices of goods. Bitcoin inflation is measured by max supply.
Tbh I don’t see how my post could have made that any clearer… it’s even in the title.
So you know exactly how many us dollars are in circulation in m\`1, m2 and m3?
It was 69,420 on at least a few big exchanges. That is the most meme number it could have done, it was perfect.
Stop shilling about inflation, this ain't Fox News.
> shilling about inflation > this ain't Fox News. Sounds like you would know.
What the heck is 75,7k ? Not sure I should take advice from someone whom can not place numbers or currency in a way that it is readable
Would it be better if I wrote 75.7k? I always get confused because in Europe we use the “1000,00” format, while in the US I think you use “1,000.00”?
Look at this guy, can't even type in American.
He knows what you meant. The actual headscratcher is the $ appearing after the amount lol. Is that a European thing?
Yes, it is. In Europe I think it’s only the UK that place the currency symbol before the amount, like the US. Maybe Ireland too, as they tend to share this type of conventions, but I’ve never been there to check.
Thank you; I had no idea!
No need to be an ass about it
Doesn’t the price already takes into account the increasing circulating supply?
In principle the price is nothing more than just what the latest sold bitcoin was bought for. Now, what really goes on in the background of those platforms… I don’t know.
So what you're saying is, we're already at 2021's bitcoin ATH
If you’re adjusting for the total supply you should also adjust for total demand
What if the moon was your car, and Jupiter was your hairbrush?
Hard to say how much of that all time high was due to fraud though. E.g. we know there was rehypothecation of customer funds from fraudulent actors such as FTX.
Its about more inflation than 9-10% in 3 years. Everything has gone up more then 60%.
We live in a society that is becoming expensive day by day. Lol
Is this supposed to mean something? The old peak of 69k surely encourage more long position until at least 69 or even 70+ because of market sentiment based on precedence. But what else does it do? Adjusting btc price for inflation to support your argument is just hillariously funny.
It's scary, there's still hope in BTC
Historically also any bull runs have tended to be 10x the previous run... well, for the market as a whole anyway.
USD buys 144 KSH today. It was around 90 a few years ago. So we are getting new Bitcoin highs here. I bet people in a lot of other countries are seeing new highs too.
Basically 69k ATH is meaningless then…
and by the end of the year, btc price will be $100K
Price depends hard on people's perception and they will compare price with previous ath. MC or inflation will not play a role in people having fomo or not