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.
That is simply untrue, every single person on earth uses economics in real life with every decision they make: they ALWAYS choose what they think at that moment will make their lives better with the information they have at hand. But you are right here: it IS in "the eye of the beholder". That can mean gold vs. silver, BTC vs. LTC, BigMac vs. Big King. That can alson mean a lesser of evils choice. That can mean a sacrifice to help someone else. That can mean they choose/chose poorly. That can mean nearly any outcome, e.g., silver, LTC, Big King, medicine over food, feeding someone else before themselves, whatever the choice they make, they choose to make their lives better than every single one of the alternative choices, even if the difference is nearly negligible.
This is why they all understand it at a gut level. This is why even the homeless wino doesn't stand in the middle of a abandoned missile silo site in Nebraska begging for money--he stands at the busiest intersection he can in the busiest city he can because he knows that he stands to make far more money at the corner of Michigan and Lake than he does there way outside of Lincoln, Nebraska.