The popular internet currency Bitcoin has experienced massive surges over the last few weeks, jumping from $40 for 1 Bitocin to over $100. With the surge there is of course the hyperdeflation, which is set to hit the Bitcoin economy in the following days and weeks.
Hyperdeflation is what happens when prices surge, after spending more than $100 on 1 Bitcoin and knowing that its price is skyrocketing, you not going to spend your Bitcoin on anything, instead you going to hoard the Bitcoin and wait for the next rise so that you can sell the Bitcoin off for a profit!
Bitcoin has had everyone jumping, with the idea that Bitcoin could be the safe haven that investors and internet shoppers have been looking for, with the latest surges in pricing for Bitcoin and the hoarding it is not a good prospect of what would happen if the hyperdeflation which is bound to take place manages to cripple the Bitcoin industry.
This chart from Clarkmoody.com shows the rate at which the prices have surged recently.
Source: Business Insider
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