According to Cagen, hyperinflation is "inflation exceeding 50% a month." Over the three month period from when bitcoin traded at $32 on 8 June to a low $6.3 on 8 September, bitcoin depreciated 42% monthly, 12% weekly or 1.76% daily against the dollar. I suppose it could have been worse. In the past week, bitcoin has depreciated 3% to 5% daily, which put bitcoin squarely in Cagen's hyperinflation zone, at least for the week.

For what I'm selling, there's less than a week between posting a price, chatting with a customer, and receiving payment. It would be nice if as a merchant I don't have to renegotiate the price after the customer has decided to buy. So with a low profit margin, I think it's reasonable to inflate prices 12% above cost and float it against the daily VWAP. Thoughts?

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Phillip Cagan, The Monetary Dynamics of Hyperinflation, in Milton Friedman (Editor), Studies in the Quantity Theory of Money, Chicago: University of Chicago Press (1956).