Quote from: sophyphreak on February 24, 2014, 06:25:12 AM

Quote from: bitinlet on February 23, 2014, 03:17:41 PM

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.

I would advise you to be careful when judging someone's credentials. I would bet heavy money that my background and education in economics is much more in depth than your own.

Now on to your point,... no what I said does not imply that gold and Bitcoin would move more-or-less in lockstep with the dollar. What I said is that anything affecting the supply of dollars, would affect the exchange rate with Bitcoin. That is a fact. I do believe that anything affecting the supply of dollars would also affect the exchange rate with gold. However, one could say that Bitcoin and gold could be considered substitutes (certainly in high-risk times, where Bitcoin's value is questioned). Therefore, arguing that they would move in lock-step from what I stated is definitively flawed economic thinking. I suggest you return to the Khan Academy videos....