The price of Bitcoin can rise and fall by thousands of dollars in as little as an hour. For smaller projects that can happen in a matter of seconds. But despite cryptocurrency’s notorious volatility, the desirability of digital money moves more slowly.
While there is a rich and diverse corner of crypto specializing in predicting price, there is a considerably smaller group of people looking at Bitcoin from a behavioral economics perspective. In particular, sentiment around Bitcoin when the price goes up.
When Bitcoin’s price surges, does the demand follow suit? And more importantly, when the price of Bitcoin goes down, does its allure fade with it? In this week’s article, we’ll be exploring whether Bitcoin has become what economists call a Veblen or a Giffen Good.
Veblen or Giffen good?
A Veblen good is typically a luxury item that enjoys the benefit of becoming more desirable as the price of that item increases. Think of a piece of priceless art or a luxury car brand
Źródło: https://decrypt.co/72696/does-bitcoins-desirability-go-up-when-its-price-increases
