Inflation and hyperinflation – what they are, what they are not
Inflation is an increase of the amount of money in circulation. Hyperinflation is simply very high inflation, which usually occurs at the last stage of fiduciary currency. Just before the collapse of paper money, there is most frequently a period of a highly dynamic growth of the amount of money in circulation. Consequently, it leads to an equally sharp rise in prices because a greater amount of money follows the same amount of goods. In a nutshell, newly issued money does not have cover in real goods. It has become customary to think that hyperinflation starts when prices increase by at least 50% in one month. On the other hand, we can talk about high inflation when the growth of money amount reaches the rate of 5% in a year.
Historically, gold was the best measure of inflation. Today the gold ore is also treated as the only currency that has no counterparty risk and that is why it was used in this study as an objective measure of inflation.
- The Bitcoin ecosystem must remain stable and profitable for all agents engaged in its day-to-day operations with no extra incentive except transaction (Tx) fees.
- Long term means after year 2040, when block reward will be 0 BTC (currently at 50 BTC).
- Maximum Bitcoin Tx fee should not exceed 1% of transaction volume. Otherwise it will not be competitive with current fiat-money transaction systems.
- Miners’ expect positive average operating profit margin, so let us assume a minimum of 1%. Currently at 29% +/- 30% [i]
- Current exchange rates: BTC/EUR 8.39 and BTC/USD 10.74
Let us evaluate current long-term Bitcoin profitability in light of those assumptions and some statistics.
W ubiegłą sobotę widziałem Hamleta wystawianego na deskach Teatru Współczesnego. Przed spektaklem nie czytałem żadnych recenzji, choć słyszałem, że są raczej pochlebne. Dzisiaj znajoma podesłała mi linka do bardziej krytycznej opinii nt. przedstawienia. Polecam przeczytać, gdyż z wieloma tezami Autorki jestem niestety zmuszony się zgodzić. Także w mojej ocenie był to Hamlet zagrany najwyżej na trójkę.
Culture out of economics
Right now we are living through the greatest monetary crisis in the history of the world. The crashes of 1974, 2000, 2007-2008 and more that will follow are just the symptoms of a giant government bubble that pushes whole nations into excessive debt and as a consequence into poverty. Some of us are lucky to prosper but many are not, so people seek a positive balancing force that can help them get through those tough times. Many find it in music.
Greatest bands are born in a crisis
It’s true that every decade has its own music but artists and bands that performed during 70’s and 80’s are still among the most recognized today. In recent years a new wave of artists emerged from somewhat chaotic social mass. An example below – Miss 600:
There are a lot of new bands out there, so what music did you discover recently?
Please tell :D