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35 sats \ 8 replies \ @tomlaies 8h \ parent \ on: Dumping a fork coin doesn't crash its price bitcoin
The english language has many of these intricacies. Another one is a "public company" can either be a publicly owned company meaning it's a government institution or a publicly traded company meaning it's a private sector traded on the stock market.
These mixups don't happen in german because they have different words. On the other hand we have other words that get mixed up all the time :D
Yes, English is horrible language. Words get messy.
You still haven't responded to my statements that in the case of bitcoin supply should be treated as total amount in existence.
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Yes, English is horrible language. Words get messy.
German has its problems too :)
You still haven't responded to my statements that in the case of bitcoin supply should be treated as total amount in existence.
I can't answer that because the premise is a fundamental misunderstanding of what "supply and demand" even is. It's not two numbers.
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Think about it this way:
Do you believe monetary inflation can cause price inflation?
If so, why? I believe it is because there was an increase in total number of monetary units in existence.
If this is true, supply has to be equal to total units in existence.
How could it be otherwise?
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It's because that new money is used to bid up prices. If it were printed in secret and kept in a safe, it wouldn't do anything to prices.
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I agree. If people don't know something exists it doesn't affect the market. If a bug exists in software, it isn't all that relevant until somebody finds it and exploits it or fixes it.
It's because that new money is used to bid up prices
Another way to say "bid up prices" is to say people have less demand for the money.
I agree that the cantillonaires will get the newly printed monetary units first. However, in a world like most central banking systems we have today, the populace learns about monetary inflation (the creation of new monetary units) as it happens.
What role do you see a decreased desire to hold cash balances playing in price inflation?
Sorry for my delay in responding. Was offline for a few hours.
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Another way to say "bid up prices" is to say people have less demand for the money.
Medium of exchange status makes this a lot harder to think about with money than it is with other goods.
However, the expanded money supply (which I realized from this conversation is a confusing term), immediately alters the holder-of-the-new-money's willingness to spend it. Essentially, it's just an expansion of their budget, since prices haven't responded yet.
Their increased willingness to part with the new money is likely accompanied by a reduced desire to acquire more, but strictly speaking these are separate things and don't have to go together. There would be nothing logically inconsistent about being more willing to spend money, while not changing what you'd do to acquire it.
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But if you say it is two levels, then you are saying how much people are willing to exchange for a thing is all that matters.
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