<p>There is <strong>monetary inflation</strong> (growth of coins in circulation), and <strong>price inflation</strong> (the rise of price of goods and services expressed in some currency).</p>
<p>These are distinct but related concepts. The quote you're citing is about monetary inflation, which is - ignoring lost coins - well defined and measurable. Price inflation is a very different concept.</p>

CC BY-SA 4.0
2022-07-29T21:18:18.910Z
Thanks for this. It's interesting that in economics, 'inflation' usually refers to what you're saying is 'price inflation'. While in the context of bitcoin, 'inflation' usually refers to 'monetary inflation'.

Is there a reason discussions in bitcoin are not more specific in terms of terminology around 'inflation'?
StatsScared
CC BY-SA 4.0
2022-08-01T20:16:38.017Z
@StatsScared "inflation" as such just means "expansion of things". In the context of macro-economy one mostly cares about controlling prices, so it's natural in that context inflation without qualifying refers to that. In the context of Bitcoin, one cares about stable monetary policy and prices are beyond anyone's control, so that's what it means there. In the context of chess ratings, "inflation" means ratings growing for a given skill level. It's very natural in specialized domains that common words get different, specific meanings, depending on context.
Pieter Wuille
CC BY-SA 4.0
2022-07-29T02:31:47.063Z
2022-07-29T02:31:47.063Z
Pieter Wuille
<p>I have recently seen many news articles refer to Bitcoin's <strong>inflation</strong>.</p>
<p>For example: &quot;<code>Bitcoin's inflation rate, calculated as the percentage of new coins issued divided by the current supply</code>&quot; <a href="https://seekingalpha.com/article/4500255-when-bitcoin-meets-inflation" rel="nofollow noreferrer">Source</a></p>
<p>This seems to be an incorrect usage of inflation, at least relative to how it is used within economics. I also have no clue if there is a unified definition of inflation in the context of bitcoin.</p>

<terminology><inflation>
Is it accurate to talk about a bitcoin inflation rate?
StatsScared
# Is it accurate to talk about a bitcoin inflation rate?

(Asked by: username_0 on 2022-07-29)

I have recently seen many news articles refer to Bitcoin's **inflation**.

For example: "`Bitcoin's inflation rate, calculated as the percentage of new coins issued divided by the current supply`" [Source](https://seekingalpha.com/article/4500255-when-bitcoin-meets-inflation)

This seems to be an incorrect usage of inflation, at least relative to how it is used within economics. I also have no clue if there is a unified definition of inflation in the context of bitcoin.

**Tags:** terminology, inflation


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## 1 answers

### Answer by username_1 on 2022-07-29. Score: 4 | Accepted answer

There is **monetary inflation** (growth of coins in circulation), and **price inflation** (the rise of price of goods and services expressed in some currency).

These are distinct but related concepts. The quote you're citing is about monetary inflation, which is - ignoring lost coins - well defined and measurable. Price inflation is a very different concept.

> **Comments:**
> **username_0**: Thanks for this. It's interesting that in economics, 'inflation' usually refers to what you're saying is 'price inflation'. While in the context of bitcoin, 'inflation' usually refers to 'monetary inflation'.  Is there a reason discussions in bitcoin are not more specific in terms of terminology around 'inflation'?  
> **username_1**: @username_0 "inflation" as such just means "expansion of things". In the context of macro-economy one mostly cares about controlling prices, so it's natural in that context inflation without qualifying refers to that. In the context of Bitcoin, one cares about stable monetary policy and prices are beyond anyone's control, so that's what it means there. In the context of chess ratings, "inflation" means ratings growing for a given skill level. It's very natural in specialized domains that common words get different, specific meanings, depending on context.  

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