[I MADE A MISTAKE about #Bitcoin] Monetary Inflation is not Price Inflation!

I realize I made a huge mistake lately and I really want to correct this In a past episode or one of the episodes, I talked about monetary inflation as price inflation

The thing is it is not the same thing! It was my mistake when I read all these Bitcoin reports talking about how Bitcoin has low inflation because of the halving, and then it correlated to price inflation or inflation targeting by the government or by the Fed These are not the same! These are two very different things and because there are two different things, you cannot just compare them like that and that's a big mistake So what is the mistake? The mistake is that now that Bitcoin has the having, the bitcoins monetary inflation has decreased to 1x% right now For the monetary inflation of Bitcoin

Now moving on to the Fed targets, the central bank targets a price inflation so inflation of the economy at 2% That's price inflation That's the the change in the value of your goods and services The value of goods and services is different from money The value of money is different from the value of goods and services

The only correlation is that we use money to purchase goods and services but their correlation might or might not be that strong Case in point: in 2008 the Fed reduced the federal rate so they reduce the interest rate to increase the supply of money so that it could affect inflation from a longer term or indirect way But did we see inflation? No, we did not see price inflation in 2008 as high as the reduction in Federal Reserve rates So what does that mean? That means that the change in monetary inflation does not have a direct correlation or doesn't have a hundred percent correlation in price inflation My mistake is that (1) price inflation and monetary inflation not the same

What does that mean? It means that when they coin bitcoins inflation bitcoins monetary inflation has decreased due to having it doesn't mean that it is now a deflationary asset compared to the USD because they are two different variables and matrix to compare (2) Monetary inflation doesn't always result in price inflation Case in point: 2008 the Federal Reserve reduces rates we didn't see that strong price inflation so that is the thing to take note of What I want to do right now is to look at how we can find figure out the price inflation of Bitcoin It's a very difficult task and I have some idea where to get started

So if you're interested and if you want to help me in this, please let me know! Because I want to look at how do we look at price inflation of Bitcoin so that we can compare it to the economy The thing about currencies is that it is almost constrained by a country USD issues US dollars and whatever that is price in this currency is price in US dollars because it is there's a geographical constrain Even if Zimbabwe has very high inflation, people still use their money in Zimbabwe You know that right? Venezuela has hyperinflation but they still use the currency in the country itself

The thing about Bitcoin is that there is no geographical constrain! It's an international currency so it's quite difficult to look at these kind of prices and it's quite difficult to find out the inflation rate of Bitcoin So that's one of the projects that I want to be working on I don't think it would take much time I just need to look for some data, so if you have some data you have some ideas of you want to collaborate with me please let me know! My point is to figure out how can we define Bitcoin as a deflationary asset because a lot of a lot of people are talking about Bitcoin as a deflationary compared to the Fed But if your metrics is wrong in the first place, that statement might not hold I want to verify that

If you're interested please let me know Till then, I'll see you next episode bye 👋🏻