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  • von Elliott Royster
    32,00 €

    Many commentators are concerned with bitcoin's price volatility relative toestablished currencies such as the U.S. dollar.1 They note that the bitcoin supply is fixedby a monetary rule2; whereas bitcoin demand fluctuates considerably due to factors suchas bursts of publicity, problems with bitcoin exchanges, and events like the Cyprusbanking crisis or sudden changes in Chinese government policy. The intersection ofbitcoin's inelastic supply with its enormously erratic demand causes its exchange ratevariability. Even were bitcoin usage to grow to an extent that it dwarfed or replaced anational currency (which would make the aforementioned demand variations smaller inpercentage terms), seasonal and cyclical demand variations would be inevitable

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