Truflation is an interesting project. The idea of using live data on prices and consumer spending to track inflation is a step in the right direction. It could offer a more timely view than traditional indices like CPI or PCE.
That said, I haven’t analyzed the data myself, so I can’t speak to its accuracy beyond what others have reported. Still, it’s worth keeping an eye on. If it shows consistent value versus the official metrics, it might become a useful tool.
Possibly something I’ll dig into more down the line if it could be used as a tool to anticipate monetary policy decisions.
There used to be a connection, production cost often acted as a price floor.
But in the current cycle, miners don’t move the market like they used to. Daily issuance is just 450 BTC, which is small compared to the amount of liquid Bitcoins that trade day in day out.
My take is that price stability now has more to do with macro flows and investor positioning than miner economics.
In my opinion, you are making a common mistake, and the graphs prove it. I spoke with Dr. Giovanni.S about the power law and its relation to Bitcoin production costs. The power law shows an R² coefficient of over 95% across several different scales. I think it’s a mistake not to connect mining costs to the price of Bitcoin.
Just take a look at what happened to the price of Ethereum when it disconnected from this thing called mining costs, and even more than that, there's almost deflation... thanks anyway.
What about the website showing real-time inflation?
https://truflation.com/
Truflation is an interesting project. The idea of using live data on prices and consumer spending to track inflation is a step in the right direction. It could offer a more timely view than traditional indices like CPI or PCE.
That said, I haven’t analyzed the data myself, so I can’t speak to its accuracy beyond what others have reported. Still, it’s worth keeping an eye on. If it shows consistent value versus the official metrics, it might become a useful tool.
Possibly something I’ll dig into more down the line if it could be used as a tool to anticipate monetary policy decisions.
Don't you think there's a connection between the average cost of Bitcoin and its price remaining stable?
https://en.macromicro.me/charts/29435/bitcoin-production-total-cost
There used to be a connection, production cost often acted as a price floor.
But in the current cycle, miners don’t move the market like they used to. Daily issuance is just 450 BTC, which is small compared to the amount of liquid Bitcoins that trade day in day out.
My take is that price stability now has more to do with macro flows and investor positioning than miner economics.
In my opinion, you are making a common mistake, and the graphs prove it. I spoke with Dr. Giovanni.S about the power law and its relation to Bitcoin production costs. The power law shows an R² coefficient of over 95% across several different scales. I think it’s a mistake not to connect mining costs to the price of Bitcoin.
Just take a look at what happened to the price of Ethereum when it disconnected from this thing called mining costs, and even more than that, there's almost deflation... thanks anyway.