Quote from: bythesea on December 26, 2013, 01:45:41 AM

Quote from: thepostman on December 26, 2013, 01:21:40 AM

Quote from: bythesea on December 26, 2013, 01:06:13 AM

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Bitcoins are perfect example of a thing called Giffen good where as the price raises the demand gets higher and as price drops so does the demand. That's a thing that doesnt follow normal rules in economy and that is why economists dont agree that Giffen goods exist.
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Bitcoin is a currency -- money. Not goods.

Yes, the more money is worth, the more people want it. All money, not just bitcoin. Price of goods rising is the exact opposite of the price of currency rising. That's why it helps to know a bit about economics.

Money in fact is a good that is used in transactions.. In economics good is describes something that satisfy human need, that needs to be obtained only difference is that bitcoins are intangible goods, like information... Bitcoins are goods in that way since atm they satisfy our need and greed, same as everything else before invention on money as a payment for a good. In the time when people used to trade items. So now you trade bitcoins for money or you use it to by something else.

So yes it helps to know a bit about economics....

Wrong. To begin learning, start with Wikip, here, and continue 'till the end.

Quote from: thepostman on December 26, 2013, 01:21:40 AM

...Price of goods rising is the exact opposite of the price of currency rising.

If a bitcoin costs double (in dollars or cows), that means that each bitcoin buys twice as much dollars or cows, and thus is about twice as desirable. If you find this phenomenon curious, paradoxical, or if this makes bitcoin "Giffen good" in your eyes, i would suggest either affordable counseling or adult continuing education.

thepostman

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