Why are high prices healthy?
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I would like to state the price of btc has little to do with its health when considering other factors which are more important.
Matter of fact the high price might very well be a negative factor. It is hard to say for sure.
Bitcoins are a purely sterile asset and a high price represents that value already produced by the economy has been transferred from holders of some other asset to holders of bitcoins. Bitcoins have even outperformed gold.
This bodes wells for the general health of the Bitcoin economy and is representative of the value consumers derive from the utility of bitcoins. Since supply is known in advance the change in price is due to changes in demand for bitcoins. Thus, a rising price is the result of rising demand for bitcoins.
This demand comes from (1) speculation and (2) transactional. Speculative demand would mean that holders of bitcoins are becoming more confident in it as a
store of value and are placing increasingly larger amounts of capital in it. Transactional demand, where the
price elasticity of demand is positive, has little if any change due to changes in the price of bitcoins and if there is greater demand then it is because of greater use of bitcoin as a
medium of exchange.
Thus, a rising price of bitcoins in national fiat currencies or commodity monies represents a wealth transfer to holders of bitcoins that results from increased demand and the
price signal bodes well for Bitcoin.