Oddbean new post about login | logout Hmm, no. It lost purchasing power by that amount (assuming your numbers are correct). It had minimal, transparent and predictable inflation in the form of block rewards.
buy a house with 2 btc today same house cost you 1 btc 3 years ago inflation 50% learn basic economics
That is not inflation. Common mistake. Inflation tends to cause price changes, but not all price changes are a result of inflation. Inflation would be 10 million more Bitcoin having been created, doubling the supply and therefore reducing the value as expressed in another unit (say, USD) as each individual sat would now be worth less, as there would be about twice as many sats than before. I echo your sentiment about learning basic economics back to you.
inflation is the sustained increase in the general price level of goods and services in an economy over a period of time. it comes from 'inflare' which is latin meaning to blow up. in terms of bitcoin prices have blown up in the last 3 years. everything is 100% more expensive measured in bitcoin than 3 years ago. today bitcoin buys only 50% of the same house it bought 3 years ago. everything became more expensive measured in bitcoin
I already replied to you with a link that explains beyond any reasonable doubt why this is incorrect. Feel free to keep your current erroneous perspective if you'd prefer. I have no dog in this fight.
I don't blame you btw, this is a very common mistake. But perhaps be a little more humble. The ego thing really doesn't reflect very well on anyone - 10x so if you happen to be wrong on top of it. https://mises.org/mises-wire/what-inflation-really-means
increased money supply is not the only reason for price increases it is possible to increase the money supply and prices still go lower: a drop in aggregate demand would cause such a scenario. or an increased supply causes prices to fall. increased productivity also leads to deflation. a resolution of supply chain issues can make prices drop. lower oil prices make prices drop economy is too difficult and complex for most people to understand what they can understand is that their btc only buys 1/2 of what it bought 3 years ago
it is a semantic discussion. almost esoteric. i gave you the common definition of inflation. in short:price increases of most goods and services. it is what is commonly used by 99% of people. they go to a market, are shocked how much their grocery costs and they have to pay for their food 100% more than 3 years ago. official sources lie about the rate of inflation. in fact it is 3-10 times higher. early bitcoiners used btc as a currency. there are currencies in the world which had much lower inflation than the usd and lower inflation than btc: the swiss franc for example. bitcoin influencers always propagate the wrong idea that all prices go down measured in bitcoin. in the last 3 years the purchasing power of bitcoin went down 50% and the prices increased 100% on average measured in bitcoin. new influencers dropped the idea of btc money and brought up the completely flawed idea of store of value. btc lost 50% of its value (=purchasing power) in the last 3 years.
No, it's not a semantic discussion.
Your definition, widely used by laypeople today but incorrect, fails to differentiate between real inflation caused by an increase in the money supply, and "inflation" as in price rises.
By your definition, after the money supply has been jacked up by, say , 6000%, and prices go up massively but stabilize after several years because among other things the money printer miraculously was put back in the closet, there is at that point no inflation anymore ("look ma, prices have not gone up this year!").
By the correct definition, the fact that there have been no price increases over the last year is immaterial, fact is the money supply is up by 6000% and THAT is inflation.
What you're saying is akin to someone who weighs 80kg on year 0,
90kg on year 1,
110kg on year 2,
130kg on year 3,
and then remains at 40%+ bodyfat and 130kg for the rest of their life,
saying they "have not gained any weight lately".
Sure, they have not, but they still put on 40kg of fat over a period of 4 years in the past and they're still obese and unhealthy.
I am sorry that your ego prevents you from seeing such an obvious point. Really at this point I'm no longer trying to help you see that you have a wrong definition which will invariably complicate your thinking surrounding this & adjacent topics.
No, I'm bothering typing this up so that others who may end up reading this in the future understand why the erroneous, currentlt predominant definition of inflation is wrong and misleading.