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All currencies can be valued in terms of other currencies. Bitcoin can also be valued directly against goods. (as can other currencies) The price of most goods
by indrax 14y ago
All currencies can be valued in terms of other currencies. Bitcoin can also be valued directly against goods. (as can other currencies)
The price of most goods is currently tied to some other currency, because most businesses have expenses in traditional currencies. But you get similar price fluctuations in international trade.
- adestefan 14y agoYes, but for everyday purchases people do not care about that. Until bitcoin can get to that point, then it's not a useful currency. Especially since it seems like people bitch and moan now about things costing too much in bitcoin because it's currently strong against the USD.
- eric-hu 14y agoIt sounds like a metric that would satisfy the parent post more is some sort of consumer price index in Bitcoins? Perhaps that would be useful to have side-by-side with a Bitcoin-to-USD metric.
- Helianthus 14y agoSadly there isn't enough data for a consumer price index, because Bitcoin isn't a currency (in the extent that its main use is exchange for commercial goods), it's a financial sandbox.
- adestefan 14y agoWhich means that it's susceptible to the wild fluctuations of any other financial security and is not the almighty digital currency that it's backers try to make it out to be.
- Helianthus 14y agoYep. I'm running into the realization that I'm actively enjoying watching this storm build.