Here’s a link to an interesting article (at bottom).
Basically we can see that Bitcoin rises in direct proportion to how many people are using it (adoption).
The more people use it, the more valuable it gets – all else being equal.
That makes sense because like any currency its value is largely related to how much utility it has.
In the case of Bitcoin, the more people and places that use and accept it, the more utility it has – that translates into rising prices.
Because Bitcoin has a strictly limited supply, the price can’t be driven down by ‘money printing’.
That’s the magic of the trustless decentralized ledger – as long it it holds in place – Bitcoin will simply keep rising as usuage rises.
The concept of Bitcoin going to $1 million plus USD seemed absurd a few years ago – not so much now.
Next week we’ll discuss where the real risks lie.
https://siepr.stanford.edu/sites/default/files/publications/17-033_1.pdf