One of the reasons a lot of people on these forums don't care about economic theory is because it doesn't work.
Like everything to do with money once someone figures how to manipulate the system, the system stops working and ends up being something it was never intended to be.
The beauty of bitcoin is that once someone starts to manipulate it and it stops working right, people can simply abandon it for a different altcoin of some kind.
It's that simple...conventional economic theory is so yesterday.
Brilliant, yet another person who doesn't understand simple economics at all ("economic theory...doesn't work"), then states an ignorant conclusion without any support whatsoever.
Economics works regardless of the monetary system because it is how human beings live their lives, whether they are conscious of it or not. Every single decision, no matter how small, no matter how many each day, is made using cost/benefit analysis. You state that "it doesn't work", might I ask why you believe such a thing?
It's that simple...cost/benefit analysis is so every day.
Economy works in a modern life to some degree. It looks on system of production and trade and a need to satisfy the needs of millions. In a modern way it does work as I said, but economy is in the eye of beholder. Bitcoins are perfect example of a thing called Giffen good where as the price raises the demand gets higher and as price drops so does the demand. That's a thing that doesnt follow normal rules in economy and that is why economists dont agree that Giffen goods exist.
You can't apply rules you find in economy to everything in a real life. That is the reason what one day you can be worth billions and the next day lose everything.