[ro-_-b]

I believe it is not fair to only take into account consumer price inflation instead of asset price inflation. Asset price inflation in the US & Europe has been massive lately. BTC is obviously an asset and therefore the inflation that is relevant for the future valuation of an asset IMO is asset price inflation

[arcticbull]

Asset price increase is not inflation, which is literally defined relative to CPI. If we're going to talk about economics we should use broadly accepted definitions yeah?

> BTC is obviously an asset...

Hold on now. Nobody seems to agree on that.

[ro-_-b]

if you look at how expensive gold is you would typically compare it in relation to other assets such as real estate or the S&P 500 and not to CPI. that's at least how I would make up my mind when is a good time to buy sell/gold. Gold/precious metals are an asset class and BTC/crypto-assets are an emerging asset class IMO also I think it is not fair that central banks only focus on CPI and not asset price. for me as a millennial it matters a lot that real estate price in central Europe are today 2x compared to what they were 10 years ago. also rent is mostly not reflected correctly in CPIs

[arcticbull]

> IMO also I think it is not fair that central banks only focus on CPI and not asset price.

I can't figure out why it's not fair, though. All that matters with asset prices is whether they go up or down, not their absolute value. The whole point of assets is they go up. Your complaint is they, what, went up "too fast" or that you weren't in when they did?

> ...for me as a millennial it matters a lot that real estate price in central Europe are today 2x compared to what they were 10 years ago.

Well, inflation accounts for I suspect a whole lot of that. Inflation since 2010 is just shy of 20% for the USD. I'm unfamiliar with central European pricing so I can't comment on that specifically, however it might surprise you to know that in the US, on an inflation-adjusted dollars per square foot basis, houses cost exactly the same as they did in the 1970s. They're just twice as big now. [1]

> ...also rent is mostly not reflected correctly in CPIs.

In what way?

[1] https://fee.org/articles/new-homes-today-have-twice-the-squa...

[ro-_-b]

"OOH, when included, is typically the biggest component of the CPI. However, many coun-tries exclude OOH from their CPIs on the grounds that it is too difficult to measure. Inparticular, the harmonized index of consumer prices (HICP) in the European Union (EU) cur-rently excludes OOH." [1]

OOH stands for owner-occupied housing. I am aware of the fact that the US accounts far better for housing expenses in its CPI than Eurozone countries do.

[1]https://epub.wu.ac.at/7039/1/WP285.pdf