Post
Topic
Board Economics
Re: What creates this price for a bitcoin?
by
CurbsideProphet
on 07/07/2011, 00:23:35 UTC
Yeah Im no economics major, but I know a dollar is worth a dollar since I have been born, based on what the gov says and the financial banking industry and power of the dollar.

Putting aside inflation/deflation, to make your statement comparable to Bitcoin, you would need to compare the dollar to another form of currency.  A dollar is a dollar, but is a dollar always equal to the same amount of Yen or Euro?  No, it fluctuates.

Same with Bitcoin, a BTC is a BTC but it fluctuates in comparison to other currencies, such as the dollar.