Why is bitcoin so expensive?
Cryptocurrency adoption is up.
Thanks to apps and exchanges like Coinbase, Bitcoin is significantly easier to buy now than ever before. These services also increase the profile of Bitcoin as a viable, tradable asset, not unlike other currencies and securities. With an increase in accessibility and popularity comes an increase in demand, which the current supply of bitcoins can’t seem to keep up with.
Other cryptocurrencies are up
Bitcoin isn’t the only cryptocurrency around. New rules governing Litecoin make it faster and easier to exchange than Bitcoin. Ethereum, another popular cryptocurrency, recently split into two different currencies, raising its profile and lowering its price of entry. As Bitcoin grew in popularity, so did all cryptocurrencies. Yet any other cryptocurrency is substantially cheaper than a single Bitcoin
Politics causes people leave traditional currencies
The U.S. election, the British “Brexit” vote, and heightened regulations on Chinese money made people consider alternatives to their country’s currency. Since Bitcoin is decentralized and not governed by any one country, it’s not susceptible to major changes in valuation should a country do something that could make their money less valuable. Many people are using the cryptocurrency to keep their money safe from devaluation, or even to use it as they would paper money.
Hi, thank you for your post, great one. I would also say the wannacry virus couple months ago also contributed to the rocketing of Bitcoin as it introduced Bitcoin to the general public. It then brought a lot of people to the market and we all know, more demand lead to price increase. Economic 101
Bitcoin plays the same role as the usd plays in the real world when it comes to stuff like oil and gold but now fir crypto currency market.
Case in point if you want to withdraw STEEM you first have to convert it to bitcoins so that you can withdraw.
I think because it's the first ever cryptocurrency, and that there will only be 21 million created ever also makes it more valuable. :)
Limited supply. More exposure recently. Uncertain times, people flock to alternative markets.
Nice post.
@reedus