Lasse Birk Olesen’s guest post about Bitcoin inspired me to do a bit of Googlenomics. I simply had a look at searches in Google for ‘Bitcoin’ using Google Insight.
The “bubble” that Lasse talked about in 2011 is certainly also visible in google searches. Have a look on this graph.
Since June 2011 the search activity for Bitcoin, however, has gone down somewhat, but is still at a somewhat higher level than prior to the 2011 spike. So judging from a bit of Googlenomics Bitcoin is still alive – whether it is kicking is another question.
I am still not sure what to make of Bitcoin as an alternative currency. However, any monetary theorist should take the development in the Bitcoin market serious as it might tell us something about not only the Bitcoin itself, but also about the general monetary developments. It would for example be very interesting to see a study of what determines the exchange rate for Bitcoins against other currencies.
Furthermore, if anybody is aware of any serious academic studies of the Bitcoin market I would be very interesting in hearing from you (email@example.com).
Everybody interested not only in Bitcoin, but more generally in what George Selgin has termed Quasi-Commodity money should have a look here. Scott Sumner as a somewhat different, but equally relevant in a post today.
I will not in anyway promise to give more attention to the Bitcoin phenomon. That is not the is not the purpose of my blog, but I do promise that to the extent that I think the Bitcoin market can teach us more about monetary theory and monetary policy in general I surely will follow up on these developments in the future.