The assertion is that inflation is measured by how much money is printed, thus stating that bitcoins 'inflation rate' is 1.8% as compared to the target US rate of 2%
FIRST OFF, inflation rate is the measure of value that is lost over a predetermined time period, in this case, annual, ie yearly.
YOU ARE WHY WE CANT HAVE NICE THINGS.
There will only ever be a set number of bitcoins on the market.
As in, eventually, the mining programs will stop spitting out coins.
'Halving' is when the program hits a predetermined threshold, it halves the number of coins it spits out.
"Oh, but Fudge, isn't increasing the value of bitcoins good?"
No. No it is not.
Here, let me put it to you like this.
So, you want to buy them today, save yourself 20 bucks.
This is VERY SIMPLIFIED.
But let's dumb it back down and see what happens in a deflationary currency.
So you wait for tomorrow, right?
Well the day after, it'll be 960.
Eventually if you wait long enough you'll be able to buy all 1000 for just one fucking dollar.
The entire point of inflationary currency is to spend it!
Spending it makes the grass grow, the sun shine, AND KEEPS US ALL EMPLOYED.
Not only that, but it is rift with flaws.
For example, the bitcoin mining program only takes into account how many coins it spit out.
That drives down the supply.
Thus driving up the 'value', a term I use with the absolute loosest definition possible in this case.
Because the program is dumb, and made by a computer programmer that doesn't have a fucking clue how currencies work.
Sure, and when he cashed out, because virtually no one uses bitcoins as currency, he helped create a value crash that wiped out 10x that value from everyone else's bitcoins.
With the DUMBEST ARTICLE I'VE EVER READ.
If there were any justice in the world the moron that wrote that would be banned forever from writing any articles to do with economics.
Fuck that, from writing period.