Post
Topic
Board Economics
Re: BTC climing to parity quickly on mtgox
by
Veltas
on 10/02/2011, 17:43:32 UTC
I'm no economist but I feel that this is due to BTC being in high demand and low supply.  Simple as can be.

I think a real problem is that it will be a long time before it levels out, and then it should follow the world's average inflation, but that's too simple a model.

We're going to overshoot parity by quite a bit if you ask me...

No the world is actually deflating, the only reason we get deflation in fiat currencies is because they print money faster than deflation. Eventually bitcoin will probably have very predictable deflation (because economic progress means stuff gets cheaper).

I thought it was deinflating.