http://goldnews.bullionvault.com/bitcoin-peso-071820133If you follow author's logic (which I don't) Bitcoins are somehow inferior to "wisely managed" in-game virtual currency such as EVE online Interstellar Kredits. Well, I wish him good luck with Interstellar Kredits and will stick to my Bitcoins just the same.
When the level of future issuance of currency is known, investors can consider the effect of the currency's inflation when determining how to value the currency today. With fiat money the amount of printing in the future isn't known so investors possibly will err in determining the currency's value. This is inefficient for the investor (and for the economy as a whole) but is very effective for the central planner who can surprise the investors who are caught with bets speculating on the wrong outcome.
The reasons the bitcoin exchange rate fluctuates so much isn't because the supply doesn't get adjusted based on the price but instead because the market is too young and there isn't significant levels of those betting short against Bitcoin. the Winklevoss Bitcoin ETF is one such instrument that will help in this area. Others are in the planning stages or in limited trial now.
