Re:Cryptocurrencies Have Broken Almost All of Their Major Pr...
by celticninja on Wednesday June 15, 2022 @05:22AM
(#31750761)
So you agree that BTC is money. ;)
But I think parent commenter is correct. The bread price increases because of inflation of the USD denominated inputs. What you can buy with BTC changes because of changes in currency swap prices. In Zimbabwe during hyperinflation a dollar would buy you the same amount of e.g. bread because the goods inputs were priced in USD, but it would cost vastly more in Zimbabwe dollars on a day to day basis.
Re:Cryptocurrencies Have Broken Almost All of Their Major Pr...
by Nursie on Wednesday June 15, 2022 @05:26AM
(#31750784)
Look up inflation as it is used by governments and economists, journalists and really everyone except internet 'Austrian' fans.
It's a measure of the increase of prices compared to currency value. Currency supply change can be one of the forces which affect it, but it's far from the whole picture.
Re:Cryptocurrencies Have Broken Almost All of Their Major Pr...
by daniel-cussen on Wednesday June 15, 2022 @09:11AM
(#31752368)
No, if they decrease buying power because of pay cuts that's not inflation.
> Definition of inflation: a general increase in prices and fall in the purchasing value of money.
It feels like you are jumping through hoops to avoid the definition of inflation.
The parent comment's mention of bread is literal and figurative. When talking about inflation, "bread" a whole sector of goods. The specific mention of bread is to reference necessity - basic needs like food/shelter/clothing.
Clearly the lines of inflation are fuzzy but if 'large enough' people's basic buying power decreases then you have inflation.
With BTC, the parent comment is simply talking about being able to buy less with BTC because they can't go to someone who will give it to them for a lower price. Do that with enough goods and you've got inflation?