Quote from: thepostman on December 26, 2013, 02:38:38 AM

Quote from: bythesea on December 26, 2013, 01:45:41 AM

Quote from: thepostman on December 26, 2013, 01:21:40 AM

Quote from: bythesea on December 26, 2013, 01:06:13 AM

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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.
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Bitcoin is a currency -- money. Not goods.

Yes, the more money is worth, the more people want it. All money, not just bitcoin. Price of goods rising is the exact opposite of the price of currency rising. That's why it helps to know a bit about economics.

Money in fact is a good that is used in transactions.. In economics good is describes something that satisfy human need, that needs to be obtained only difference is that bitcoins are intangible goods, like information... Bitcoins are goods in that way since atm they satisfy our need and greed, same as everything else before invention on money as a payment for a good. In the time when people used to trade items. So now you trade bitcoins for money or you use it to by something else.

So yes it helps to know a bit about economics....

Wrong. To begin learning, start with Wikip, here, and continue 'till the end.

Quote from: thepostman on December 26, 2013, 01:21:40 AM

...Price of goods rising is the exact opposite of the price of currency rising.

If a bitcoin costs double (in dollars or cows), that means that each bitcoin buys twice as much dollars or cows, and thus is about twice as desirable. If you find this phenomenon curious, paradoxical, or if this makes bitcoin "Giffen good" in your eyes, i would suggest either affordable counseling or adult continuing education.

Lol. Wiki. And you wanna be taken serious? I can write a topic on wiki, that doesnt mean it is true...
http://economics.about.com/cs/studentresources/f/money.htm

Read this, same thing..
Bitcoin is a mean of obtaining items you need. Money is the same thing right. But can you make your own print your own money? No, but you can " print " bitcoins without the government help ( or so we think it is now ).

You are looking it wrong. BTC has a value, atm thats lets say 700$ and the trade is lower then it was when it was 1100$. When it drops to lets say 300$ you can by close to 4x more for the same amount of money when it was 1100$ but the trade won't be as good as back it was before. So yes, you my little boy need to go back to school...