Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: Bitcoin is a new phenomenal innovation
by
elenka n
on 22/09/2018, 09:16:10 UTC
⭐ Merited by foserfox (1)
With a certain amount of fantasy, one may get the impression that bitcoin belongs to the class of so-called "Giffen goods".  This term describes a product, the demand for which increases as its price rises.  This is the goods, the demand curve for which is tilted up.  The prehistory of the origin of the term is as follows.  English economist Robert Giffen in the second half of the 19 century drew attention to an interesting fact - during the famine in Ireland, the demand for potatoes, the price of which was constantly growing, increased significantly, which looked frankly illogical.  However, such a paradoxical effect was observed extremely rarely, and only with respect to the goods, without which it is absolutely impossible to do without.  This was in the case described with the "potato famine" in Ireland, similar to rice in China.  Obviously, bitcoin does not belong to the vital goods.  Rather, "Giffen's goods" is an entertaining anomaly, mainly useful in verifying students' understanding of the subtleties of income and replacement effects.  But why the dynamics of the course and the volumes of bitcoin trade correspond to the way prices and sales volumes of "Giffen's goods" behave?  Perhaps, because in the world the point of view is increasingly popular: bitcoin is an excellent option to save and increase savings.  While everything says about the correctness of this thesis.  However, it is not known how long the present situation will last.