Bitcoin 2013: So Much for Deflationary Hoarding
There was something I learned at the conference that warrants its own post before I close out the series.
Among merchants dealing in Bitcoin, many are starting to offer discounts for paying in BTC instead of USD-I heard as much as 40% from some attendees.
While some of this is surely driven just by Bitcoin enthusiasm, it looks like there's something else here.
If merchants are selling goods denominated in Bitcoin at a discount because they anticipate the currency to continue appreciating, then the markets are dealing with the supposed hoarding problem by just pricing it away.
Who would have guessed? (The answer is not a lot of economists)