>If I tried to find a gas station that would sell me a gallon of gas for $2USD today I'd be out of luck, but 2-3 years ago I'd be able to go anywhere in America and get that deal.
That illustrates that the price of oil fluctuates. The USD hasn't dropped in value by 50% in the last two years.
Most of currency is fluctuation is fluctuation relative to other currencies. If the price of the Icelandic krona plummets relative to USD and GBP, it doesn't mean that all the prices in Iceland immediately rise to compensate. People in Iceland are still paid in krona and buy things in krona for approximately the same number of krona.
But if the price of BTC rises suddenly, prices do suddenly decrease because at the moment it's just a proxy. There's no real internal market: there aren't people who are paid in BTC and have their savings account in BTC and make their mortgage payments in BTC and buy their food in BTC.
So BTC really isn't like other currencies. It's fluctuating massively even from an internal market perspective.
That illustrates that the price of oil fluctuates. The USD hasn't dropped in value by 50% in the last two years.
Most of currency is fluctuation is fluctuation relative to other currencies. If the price of the Icelandic krona plummets relative to USD and GBP, it doesn't mean that all the prices in Iceland immediately rise to compensate. People in Iceland are still paid in krona and buy things in krona for approximately the same number of krona.
But if the price of BTC rises suddenly, prices do suddenly decrease because at the moment it's just a proxy. There's no real internal market: there aren't people who are paid in BTC and have their savings account in BTC and make their mortgage payments in BTC and buy their food in BTC.
So BTC really isn't like other currencies. It's fluctuating massively even from an internal market perspective.