<p>Other crypto currencies are their own entities, like each country contains their own currency each crypto currency is self contained. While others (fiat currency) depend on the rise and fall of the US backed dollar. Other coins aren't hinged inherently on the rise and fall of bitcoin, these coins depend on their own usage, efficiency, or adoption. </p>

<p>More reading here. 
<a href="https://www.coindesk.com/bitcoin-explained-global-currency-wall-street-veteran/" rel="nofollow noreferrer">https://www.coindesk.com/bitcoin-explained-global-currency-wall-street-veteran/</a></p>

CC BY-SA 3.0
2017-08-21T22:09:18.203Z
2017-08-21T22:09:18.203Z
Jacq
<p>The term "inflation" usually refers to prices for goods and services in the offical fiat currency of a country. </p>

<p>In that sense "inflation" does not really apply to the price of one unit of crypto in fiat. </p>

<p>You probably refer to the price of 1 Crypto in Fiat and assume that that price must go down if more of such crypto units are thrown onto the market. And as a result you would need to exchange more crypto to pay for the fiat price of a good or service. </p>

<p>So these are two different kinds of inflation with a cumulative effect. </p>

<p>When more coins are issued (mined and sold) than taken from the market the price goes down (and vice versa). </p>

<p>But in our exiting times we need to be aware, that we are now at the beginning of a huge and complete transition from BAD money to much BETTER money, which can do without banks, regulations. government control and value skimming through digital money printing. A transition which will continue for a few decades until there are no more shiny bank skyscrapers. </p>

<p>So there is currently a huge amount of fiat money brought into the crypto world and that money is looking for promising coins, which can fulfil specific purposes, like easy payment, safe storage of value, identity verification (like Civic (cvc)) and many new purposes, which are waiting to be discovered. Blockchain supplies Trust. Money is just one aspect of that.  </p>

<p>During this transition phase the value of coins gets determined through price discovery by supply and demand on the market. 
The fiat price of coins deemed valuable will rise - to the moon - if you want, because of the general devaluation of fiat, which is a logical consequence of this transition. 
All the other coins, those without any specific purpose apart from speculation will not be taken up. One reason that a coin gets abandoned, among many others, might be the inflationary effect, when too many tokens are released after ICO.</p>

<hr>

<p>We got used to be caught in a financial system, designed and fine tuned to rob us of the fruits of our work and ideas, but quite unexpectedly a door opened through which the bright light of an exciting future is shining in. </p>

<p>And some, the first pioneers, mostly young folk, have the courage to actually walk out. 
Those who just buy crypto to get lucky (most of us) have just gotten up, but not walked out yet. 
A second step is needed, a step that is even more important than protecting your hard earned money from inflation. </p>

<p>If you prefer to escape the Fiat hell into the Crypto paradise, you need to START earning Crypto and STOP earning Fiat ! </p>

<p>And that needs real effort. Much more than just opening an account at an exchange to jump on the train, when its on the way up. </p>

CC BY-SA 3.0
2017-08-22T11:11:16.447Z
2017-08-22T11:11:16.447Z
user58005
<p>The supply of crypto currency is actually limited and they are designed to be inherently deflationary.
But before the deflation comes inflation.</p>

<p>Crypto is largely a speculative investment, only a throw away from gambling. </p>

<p>That said, Crypto isn't inherently susceptible to inflation but it could create hyper inflation of fiat currency.</p>

<p>Crypto is creating a lot of new millionaires who got lucky with sorta gambling their money, who would in turn increase the demand for goods and services driving up their prices over night with their new found money further increasing the gap between the rich and the poor.</p>

<p>Just picture large number of people stumbling upon hoards of gold and diamond mine by chance, who never tasted luxury before, are suddenly out in the market throwing money left and right. </p>

<p>This wouldn't happen if the income is hard earned from business and jobs, as they dont usually create many millionaires over night, and you woudn't be a spendthrift like the above group. Sure, exceptions exist but generally speaking that's how the human psyche is.</p>

<p>Another scenario, they'd sit on millions silently, without spending a dime because the price of crypto is constantly increasing. But that wouldn't be good for the economy either as it would lead to deflation and depression as as a bunch of new millionaires are taking all that wealth from the economy pool, which would otherwise be distributed among many. This would lead to decreased demand for products which leads to unemployment.</p>

<p>Best case scenario, they'll invest that money in something real, say real estate, or a software business start up, which could create jobs. But not many will do it and won't succeed even if they do it, as majority of them are not good investors, they're just there to ride the hype train to cash in. </p>

<p>Bottom line: If everybody's rich, nobody's rich. </p>

CC BY-SA 3.0
2018-01-04T10:55:09.763Z
2018-01-04T11:00:20.500Z
2018-01-04T11:00:20.500Z
user72383
<p>The split of Bitcoin Cash off Bitcoin is similar to money printing but with a large sudden jump in the sense that more coins (double) were created. At the moment of the split every Bitcoin had a sibling in Bitcoin Cash - with a lower value in USD. So they were suddenly doubled.</p>

<p>Inflation basically is related to higher prices of goods because of creation of more money (aka printing). As the number of Bitcoins is indeed limited and so less easy to create more we might see more splits in the future to overcome this limitation and the market will find alternative ways to make more money mining and attracting buyers of new coins.</p>

CC BY-SA 3.0
2017-08-22T00:53:08.853Z
2017-08-22T00:53:08.853Z
KOld
<p>Most cryptos aren't used as money, but as speculative instruments. That is why the crypto market as a whole doesn't affect BTC prices much.</p>

CC BY-SA 3.0
2017-08-22T08:29:19.797Z
2017-08-22T08:29:19.797Z
Dan Bolser
<p>One of the advertised advantage of bitcoin is that it can't create inflation. Governments can't print more money because bitcoin is fixed at 21 million.</p>

<p>But how about creating other crypto currencies when 21 million bitcoins is reached? There are at least a thousand crypto currencies in existence now. Isn't that a form of inflation? You are creating more money although not of the same type. </p>

<currencies><inflation>
Why don't cryptocurrencies create inflation if there are so many of them?
Bobo
# Why don't cryptocurrencies create inflation if there are so many of them?

(Asked by: username_0 on 2017-08-21)

One of the advertised advantage of bitcoin is that it can't create inflation. Governments can't print more money because bitcoin is fixed at 21 million.

But how about creating other crypto currencies when 21 million bitcoins is reached? There are at least a thousand crypto currencies in existence now. Isn't that a form of inflation? You are creating more money although not of the same type.

**Tags:** currencies, inflation


---

## 5 answers

### Answer by username_1 on 2017-08-21. Score: 1

Other crypto currencies are their own entities, like each country contains their own currency each crypto currency is self contained. While others (fiat currency) depend on the rise and fall of the US backed dollar. Other coins aren't hinged inherently on the rise and fall of bitcoin, these coins depend on their own usage, efficiency, or adoption.

More reading here.
<https://www.coindesk.com/bitcoin-explained-global-currency-wall-street-veteran/>


---

### Answer by username_2 on 2017-08-22. Score: 1

The term "inflation" usually refers to prices for goods and services in the offical fiat currency of a country.

In that sense "inflation" does not really apply to the price of one unit of crypto in fiat.

You probably refer to the price of 1 Crypto in Fiat and assume that that price must go down if more of such crypto units are thrown onto the market. And as a result you would need to exchange more crypto to pay for the fiat price of a good or service.

So these are two different kinds of inflation with a cumulative effect.

When more coins are issued (mined and sold) than taken from the market the price goes down (and vice versa).

But in our exiting times we need to be aware, that we are now at the beginning of a huge and complete transition from BAD money to much BETTER money, which can do without banks, regulations. government control and value skimming through digital money printing. A transition which will continue for a few decades until there are no more shiny bank skyscrapers.

So there is currently a huge amount of fiat money brought into the crypto world and that money is looking for promising coins, which can fulfil specific purposes, like easy payment, safe storage of value, identity verification (like Civic (cvc)) and many new purposes, which are waiting to be discovered. Blockchain supplies Trust. Money is just one aspect of that.

During this transition phase the value of coins gets determined through price discovery by supply and demand on the market.
The fiat price of coins deemed valuable will rise - to the moon - if you want, because of the general devaluation of fiat, which is a logical consequence of this transition.
All the other coins, those without any specific purpose apart from speculation will not be taken up. One reason that a coin gets abandoned, among many others, might be the inflationary effect, when too many tokens are released after ICO.

---

We got used to be caught in a financial system, designed and fine tuned to rob us of the fruits of our work and ideas, but quite unexpectedly a door opened through which the bright light of an exciting future is shining in.

And some, the first pioneers, mostly young folk, have the courage to actually walk out.
Those who just buy crypto to get lucky (most of us) have just gotten up, but not walked out yet.
A second step is needed, a step that is even more important than protecting your hard earned money from inflation.

If you prefer to escape the Fiat hell into the Crypto paradise, you need to START earning Crypto and STOP earning Fiat !

And that needs real effort. Much more than just opening an account at an exchange to jump on the train, when its on the way up.


---

### Answer by username_3 on 2018-01-04. Score: 0

The supply of crypto currency is actually limited and they are designed to be inherently deflationary.
But before the deflation comes inflation.

Crypto is largely a speculative investment, only a throw away from gambling.

That said, Crypto isn't inherently susceptible to inflation but it could create hyper inflation of fiat currency.

Crypto is creating a lot of new millionaires who got lucky with sorta gambling their money, who would in turn increase the demand for goods and services driving up their prices over night with their new found money further increasing the gap between the rich and the poor.

Just picture large number of people stumbling upon hoards of gold and diamond mine by chance, who never tasted luxury before, are suddenly out in the market throwing money left and right.

This wouldn't happen if the income is hard earned from business and jobs, as they dont usually create many millionaires over night, and you woudn't be a spendthrift like the above group. Sure, exceptions exist but generally speaking that's how the human psyche is.

Another scenario, they'd sit on millions silently, without spending a dime because the price of crypto is constantly increasing. But that wouldn't be good for the economy either as it would lead to deflation and depression as as a bunch of new millionaires are taking all that wealth from the economy pool, which would otherwise be distributed among many. This would lead to decreased demand for products which leads to unemployment.

Best case scenario, they'll invest that money in something real, say real estate, or a software business start up, which could create jobs. But not many will do it and won't succeed even if they do it, as majority of them are not good investors, they're just there to ride the hype train to cash in.

Bottom line: If everybody's rich, nobody's rich.


---

### Answer by username_4 on 2017-08-22. Score: 0

The split of Bitcoin Cash off Bitcoin is similar to money printing but with a large sudden jump in the sense that more coins (double) were created. At the moment of the split every Bitcoin had a sibling in Bitcoin Cash - with a lower value in USD. So they were suddenly doubled.

Inflation basically is related to higher prices of goods because of creation of more money (aka printing). As the number of Bitcoins is indeed limited and so less easy to create more we might see more splits in the future to overcome this limitation and the market will find alternative ways to make more money mining and attracting buyers of new coins.


---

### Answer by username_5 on 2017-08-22. Score: 0

Most cryptos aren't used as money, but as speculative instruments. That is why the crypto market as a whole doesn't affect BTC prices much.


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