Re:Bitcoin falls under $16,000
by thaumasiotes on Wednesday November 09, 2022 @07:02PM
(#33540102)
> To be precise, the value of money sinks. The value of bread to everyone involved stays the same.
The value of bread as measured in money rises. I'm just using the terminology from the parent comment.
> And another nitpick: by definition the average/median price rises, not the price of everything (afair).
No, that's wrong. The value of money sinking is exactly the same as the price of everything rising. That is the meaning of "the value of money"; there is not even a theoretical distinction between these concepts. If the value of money falls in half, then all prices, of everything, have increased by 100%.
> Since bitcoin itself is a currency though, I'm not sure how inflation really applies across currencies (since there are "prices" both ways).
There seems to be some kind of conceptual confusion here. Currencies inflate (by losing value), or deflate (by gaining value), or don't (by maintaining the same value; in reality this can't happen).
If one currency inflates more than another one does, then the exchange rate between them will shift. (It will take more of the first currency to buy a constant amount of the second one, or less of the second one to buy a constant amount of the first one.) If two currencies inflate by the same amount, then the exchange rate between them won't shift. What's your question?
The value of bread as measured in money rises. I'm just using the terminology from the parent comment.
> And another nitpick: by definition the average/median price rises, not the price of everything (afair).
No, that's wrong. The value of money sinking is exactly the same as the price of everything rising. That is the meaning of "the value of money"; there is not even a theoretical distinction between these concepts. If the value of money falls in half, then all prices, of everything, have increased by 100%.
> Since bitcoin itself is a currency though, I'm not sure how inflation really applies across currencies (since there are "prices" both ways).
There seems to be some kind of conceptual confusion here. Currencies inflate (by losing value), or deflate (by gaining value), or don't (by maintaining the same value; in reality this can't happen).
If one currency inflates more than another one does, then the exchange rate between them will shift. (It will take more of the first currency to buy a constant amount of the second one, or less of the second one to buy a constant amount of the first one.) If two currencies inflate by the same amount, then the exchange rate between them won't shift. What's your question?