2014-05-15 Bloomberg - Inflation Soars in the Bitcoin Consumer Price Index

[kiko]

http://www.bloomberg.com/news/2014-05-15/inflation-soars-in-the-bitcoin-consumer-price-index.html

Slightly bizarre way of reporting on the price action.

In December, using bitcoin to pay for a cold Corona at New York City's Old Man Hustle bar was a smart move. With the digital currency up 64-fold for the year, patrons got lots of bitcoin bang for their beer. Bitcoin-priced goods were experiencing "massive deflation," ... <snip> ... And now? The price of a bitcoin is around $442 on CoinDesk, down more than 40 percent from the start of 2014. Bitcoin brew-buying isn't nearly as attractive, as massive inflation takes root with items priced in the digital currency. For example, in December one bitcoin bought about 128 Coronas at the Lower East Side bar, not counting tax. It would buy about 74 beers today

[Lethn]

LOL Bitcoin can't be inflated, I'd like to know where he's getting this from because he hasn't bothered going into any detail, nevermind the fact that even calculating the price drop Bitcoin has outperformed even the Chinese Yuan in the past two years. Looks to me like this is another idiot who doesn't understand what inflation is and confuses the price rises and falls of a market with inflation of the money supply, I'm beginning to think the price inflation is another thing made up by neo-keynesian economists to overcomplicate economics yet again.