Post
Topic
Board Beginners & Help
Re: BitCoin is NOT a Currency
by
anastis
on 04/07/2013, 14:09:18 UTC
One dollar has still the same approximate value. With 1.30 usd you could buy 1 euro.
But between now and 3 months earlier, the value of bitcoins changed a lot

That's the result of the government controlling the liquidity though.

Assume the value of crude oil sky-rockets, and you want to buy it.
When there are not enough bitcoins to match the demand, it's value goes up, because everyone wants more bitcoins so that they won't get cold.
When there are not enough dollars to match the demand, the government doesn't want you to get cold, so it generates more dollars. To you, your dollars seem stable, but in reality they are devalued a little.