Inflation Soars in the Bitcoin Consumer Price Index, a new way to size the market?
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,” as the price of real things in terms of bitcoin plummeted.
It measured that by creating a Bitcoin Consumer Price Index that was the exact equivalent of the U.S. Bureau of Labor Statistics’ Consumer Price Index but measured the prices of goods and services in terms of bitcoins instead of dollars. Here’s what that looked like for 2013: