If anyone can mine how does inflation not occur?


The answer to your question can be found on the Bitcoin wiki.

It's true that everyone can mine, but the amount of coins that are up to be mined by miners is controlled by the Bitcoin protocol.

The difficulty of mining a "block" is adjusted automatically (every 2016 blocks or ~ 2 weeks). The adjustment is made by all miners using a transparent calculation. The adjustment aims to retain a rate of approximately 1 block mined every 10 minutes.

Additionally, every ~4 years (or 210000 blocks), the reward for finding a block is halved.

Taking this two things in account, the reward for mining a block will become zero after 6930000 blocks or ~136 years. (It becomes zero because the precision in which bitcoins can me measured is too low.)

You may think that people will stop mining when the reward becomes too low, but you have to keep in mind that miners also get the transaction fees from the transactions they verify in their blocks. Currently the...

0 0

Inflation is simply defined as “the general rise in prices over a continuous period of time”. It seems like a simple thing to understand and measure, but with inflation there are many things that go into it’s cause, and that is where inflation tends to get confusing and murky. I am going to discuss how inflation occurs and what causes it, and I will also bring in a little historical perspective to show how America’s general fear of inflation is misplaced in the wrong things.

The most common cause of inflation is “cost push inflation” or other times called “supply shock inflation”. What happens here is that when a common good, typically oil, food and/or precious metals, becomes more expensive to process, or its supply decreases (like a large oil spill, or a nationwide drought) it puts upward pressure on the price of these goods. When a supply of a common good decreases the demand for it typically doesn’t decrease with it, so firms that offer those goods raise prices to reach...

0 0

In terms of economics, inflation can be defined as the rise in the prices (general level) of services and goods in an economy over a certain period of time. In earlier days, the term inflation was used to refer the increases in supply of money, but these days the “inflation” is purely used to refer the increase in levels of prices.

On the other hand inflation can also be defined as decrease in the value of money (or loss of the purchasing power in some medium of the commodity exchange). Most accurate measure of the inflation is known as “inflation rate”. Inflation rate is defined as percentage change in the price index over a certain period of time.

In most simple words, you can conclude that inflation occurs in an economy when the net demand for services and goods exceeds the total supply. Now, because of less supply, the net prices of these services/goods increases and this kind of situation is known as inflation.

Effects of inflation
Inflation produces...

0 0

Only available on StudyMode

Download(s) : 14566 Published : September 24, 2010

Please sign up to read full document.

Explain how inflation affects the functions of money.

Inflation is the general increase in the price level over a period of time. Money is something that is generally acceptable in the exchange of goods and services.

When inflation occurs, the value of money decreases as the same amount of money can’t buy the same amount of products like before. The purchasing power of money decreases. If the inflation rate is high and unanticipated, lots of problems can occur. People can lose confidence in money as it can not continue to keep its value. People will not save their money to invest further. Money loses its store of value function. People will tend to keep real assets like lands to retain their wealth. Money can not serve as a medium of...

0 0

With 'zero' expectations for a rate-hike today, all eyes are focused on any shifts in The Fed's balance sheet normalization timeline ("balance sheet unwind to start relatively soon") and its most-recently-dovish inflation outlook (following the weak June CPI print, The Fed now says "inflation seen rising to 2%" but is weaker").

Key takeaways from FOMC:

Balance sheet reinvesting to continue "for the time being," normalization plan to begin "relatively soon" which most sellside desks means a September announcement, leaving December for the next rate hike. Headline and core inflation "have declined," and the word "recently" after this phrase from the June statement is omitted today. This has been taken as confirmation that the Fed admits the recent dip in inflation may extend longer than the Fed expected and is the reason for the sharp drop in the USD. Inflation running below 2%, the descriptor tweaked from the "somewhat below" in the June statement No dissenters...
0 0

When there is a rise in general price level for all goods and services, it is known as inflation. An inflationary movement could be because of the rise in any single price or a group of prices of related goods and services.

In simple words you could say, it occurs when the total demand for goods and services in an economy exceeds the supply of the same. When the supply is less, the prices of these goods and services would rise, leading to a situation called inflation.

Causes of Inflation

However, there isn't one single cause and some prominent causes are listed below.

If the cost of production of goods and services increases, the price of the end product would also increase. This could lead to inflation. When the business houses and industries increase the price of their goods and services in order to increase their profit margins, it could lead to inflation. This type of inflation is known as pricing power inflation or administered price inflation. In this...
0 0

What is 'Headline Inflation'

Headline inflation is the raw inflation figure as reported through the Consumer Price Index (CPI) that is released monthly by the Bureau of Labor Statistics. The CPI calculates the cost to purchase a fixed basket of goods, as a way of determining how much inflation is occurring in the broad economy. The CPI uses a base year and indexes the current year's prices according to the base year's values.

BREAKING DOWN 'Headline Inflation'

As it includes all aspects within an economy that experience inflation, headline inflation is not adjusted to remove highly volatile figures, including those that can shift regardless of economic conditions. Often, headline inflation is closely related to shifts in the cost of living, which provides useful information to consumers within the marketplace.

The headline figure is not adjusted for seasonality or for the often-volatile elements of food and energy prices, which are removed in the core...

0 0

Monetarism is a hoary old myth that does its damage in two distinct ways. The first is that, piggybacking on Milton Friedman’s personality, basically an entire generation of economists are actually monetarist in their practical thinking. Greg Mankiw once remarked that New Keynesianism should more accurately be called New Monetarism and a glance at the actual pronouncements of even the more self-critical the New Keynesians shows this beyond a shadow of a doubt.

The second way in which monetarism does its damage is what might be called ‘man-in-the-street-monetarism’. Man-in-the-street-monetarism is the knee-jerk reaction you get from people who have no training in economics (and some people who actually do but obviously weren’t paying close attention!) but who nevertheless read about economic matters and so forth. When they hear ‘money printing’ they instantly think ‘inflation’. This can interfere with conversations at dinner parties but it also infects the...

0 0

Inflation is an economic phenomenon that has an increasing change in the price of goods and services. A closely linked phenomenon to inflation is deflation, sometimes called negative inflation. Deflation occurs when there is a decreasing change in the price of goods and services. Inflation and deflation affect how a consumer can buy goods and the value of debt. Inflation can occur in wages or prices.

Measuring Inflation

Price inflation is typically measured using the consumer price index (CPI). The United States Bureau of Labor Statistics keeps track of the CPI. The CPI takes a constant basket of goods and sees how the price changes from year to year. If the price of the basket of goods increases, then there is price inflation. If the price of the basket of goods decreases, then there is deflation. People measure wage inflation using the employment cost index. The employment cost index shows how the cost of labor increases or decreases over a period of time.

0 0
0 0

If you are thinking of getting into Eather mining and start building an expensive rig then dont, soon in a few months you will not be ble to mine anymore.

PoS will take over and mining will no longer be possible. PoS stands for Proof Of Stake, meaning people that hold Ether can do so called staking where they deposit their coins into a "staking vault" and receive fees for confirming transactions on the network. That works via a consensus algorithm.

My recommendation: Its too late to get into mining, instead buy Ether now with that money and you will make much more money. The required amount for staking is RUMORED to be 1500.

But if you allready have a few AMD cards laying around, then you can at least mine some Ether for now..but dont og out buy expensive equipment now. The party is already over and the only way to make money with Ether is to buy ether as an Investment and hold on to it for future gains in price.


0 0

Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (economic growth too fast) or cost push factors (supply-side factors).

1. Demand-pull inflation

If the economy is at or close to full employment, then an increase in AD leads to an increase in the price level. As firms reach full capacity, they respond by putting up prices leading to inflation. Also, near full employment with labour shortages, workers can get higher wages which increase their spending power.

AD can increase due to an increase in any of its components C+I+G+X-M

We tend to get demand-pull inflation if economic growth is above the long-run trend rate of growth. The long run trend rate of economic growth is the average sustainable rate of growth and is determined by the growth in productivity.

Example of demand-pull inflation in the UK

In the 1980s, the UK experienced rapid economic growth....

0 0
0 0
RubberKat wrote:
Use some sort of inflatable suit/prop to make yourself look inflated. Real inflation is dangerous.

I've been doing real inflation for years, have never been hurt, and can get pretty big.



I get very annoyed with people who have absolutely zero knowledge about inflation making claims that "its dangerous" when they themselves have no experience. I'm not stupid enough to just plug an air hose into me and say "Hope this works!"

I've done a lot of research, read many medical journals, and even talked to doctors about this. The medical communities perform "inflation" aka "enemas" all the time with barium, helium, carbon dioxide, and oxygen. There are many journals and reports on all of these. With anything, there is an inherit risk. Just as there is a risk with stuffing yourself full of food or drinking a gallon of liquid. The point is to just not overdo...

0 0

Why are there periods when a country’s economy works more strongly than others?

What do you know about inflation?


Inflation in generally refined as a persistent rise in the general level with no corresponding rise in output, which leads to a corresponding fall in the purchasing power of money. It leads to a redistribution income and wealth, often hurting of society with little economic power (e.g. pensioners); affects balance of payments because exports become relatively expensive and therefore less competitive as imports become relatively cheaper. Other consequences of inflation are uncertainty about the value of money or the real meaning of prices and resource costs of frequently changing prices.

Inflation occurs in many countries but at different rates: it varies considerably in its extent and severity. There are different fates of inflation: from gentle creeping (mild) inflation (perhaps 5%...

0 0


by Dr. Lawrence Wilson

© June 2015, L.D.Wilson Consultants, Inc.

In The Economic Consequences of the Peace (1920), John Maynard Keynes (who is not my favorite author) observed:

ТLenin (the founder of the former communist Soviet Union) was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnoseУ.

Many people do not realize that inflation is with us, and it is an extremely destructive hidden tax, especially on the poor of all nations of the world. Inflation reduces the buying power of your money, so you become poorer, even if you have the same amount of money in the bank or in your pocket.

Suppose, for example, the inflation rate is 3.5%. If you have $30,000.00, in ten...

0 0

Inflation occurs when you have an increase in prices for goods and services. Prices for items you need may rise at a slow rate so it is hardly noticeable. At other times, dramatic increases known as hyperinflation can raise prices to significantly high levels that create noticeable changes in your cost of living. Rising prices and high unemployment with little growth in the economy cause stagflation. All these situations affect the standard of living to a certain degree.

Loss of Purchasing Power

Inflation lessens the purchasing power of your money. A product you purchased for a dollar 20 years ago would cost a lot more today. Inflation is easy to see over a long period of time, but it can put a dent in your purchasing power whenever it goes up. If inflation rises 5 percent for the year, you will need 5 percent more in income to match what you purchased last year. Even if you get a 3-percent raise, you still won’t be able to buy what you bought last year for the same...

0 0

Your standard of living is largely based on two factors: your income and your expenses. Inflation occurs when day-to-day expenses rise. An imbalance in the relationship between supply and demand causes inflation. Prices rise as increasing numbers of people compete to buy a limited number of goods. Periods of inflation are common in functioning free market economies. However, inflation can have a profound effect on your standard of living.


Economists and government officials use a variety of methods to track inflation, but the Consumer Price Index is commonly used as a measure of inflation in the United States. The CPI charts fluctuations in the prices being paid by urban consumers for food, housing, education, clothing and various services. CPI data do not include income taxes, although they do include sales and excise tax. Inflation causes the CPI to rise, while deflation has the opposite effect. Historically, prices gradually rise over time, but...

0 0

Today the Federal Reserve announced that it is increasing its target for the fed funds rate to a new range of 1 to 1.25%, a development that surprised no one. But something that was not heralded in advance was the announcement that the Fed intends to “begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated.” The Fed spelled out in detail exactly what that will entail. Sometime later this year, the Fed will begin limiting the amount of maturing Treasury securities and mortgage-backed securities that it reinvests, initially bringing its balance sheet down by $10 billion each month as its holdings are redeemed. Those amounts will gradually increase each month until after a year balance-sheet reduction reaches a pace of $50 billion per month. That compares with a net increase of $100B/month on the way up during QE1. Given current Fed security holdings of $4.2 trillion, this would reduce the Fed’s security holdings by...

0 0