Post
Topic
Board Economics
Re: Question from a Bachelor in Econ
by
sophyphreak
on 24/02/2014, 06:25:12 UTC
I would think a non-trivial amount of the Bitcoin exchange rate volatility is not in relation to the burgeoning currency itself, and may actually be more dollar-related (or domestic currency-related). Remember, Bitcoin's supply is fixed.

If argument this were correct, then gold and BitCoin would move more-or-less in lockstep relative to the dollar. But they don't. Because this is flawed economic thinking. Because you need to learn some basic econ, much of which can be learned for free on Khan Academy.