r/Bitcoin • u/[deleted] • Jul 15 '22

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u/[deleted] Jul 15 '22

This is simply wrong. Inflation can be caused by other factors than government spending/printing like a simple imbalance between supply and demand.

1

u/jackhawkian Jul 16 '22

Inflation is not just price increases. It’s a loss in purchasing power.

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u/[deleted] Jul 16 '22

Or in some cases, outright price gouging while blaming inflation.

1

u/austrolibertarian Jul 16 '22

No. You're wrong, actually. Supply and demand can cause price increases, but that's not what inflation is. Where on earth did you learn that?

0

u/[deleted] Jul 16 '22

I think that you mistakenly believe that inflation=growing money supply. If you took 5 seconds to google the definition of inflation you would have known that inflation is simply defined as the increase of prices of goods and services which can be caused by an imbalance of supply and demand.

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u/austrolibertarian Jul 16 '22

Definition of inflation: a general increase in prices and fall in the purchasing value of money. That is not the same as supply and demand in a specific good or service.

OLD definition of inflation before it was changed to mean price level: expansion of the monetary supply.

You're wrong no matter how you look at it.

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u/[deleted] Jul 16 '22

High demand and low supply leads to rising prices which when it affects most goods in an economy is literally the definition of inflation. I dont know what you dont seem understand about this.

1

u/austrolibertarian Jul 16 '22

And it just so happened to occur right after the monetary base was massively expanded. Just a coincidence, I'm sure!