29/11/17

Information spreads faster and faster, Bitcoin's cycles are getting faster (30% to 40% pullbacks used to take days, now they're happening in hours), and its rallies are reaching magnitudes and momentum unheard of in markets' history. Could this mean that its rate of adoption will also be unexpectedly fast? I mean, everything about Bitcoin so far exceeds expectations twofold, so would it really be shocking?

Bitcoin is still under-priced, compared to what its price would need to be should it become a mainstream, widespread currency. Its current value is derived from the spread of its usage, and its expected future value is based on speculation of just how much adoption Bitcoin will actually get. As more people buy it, its adoption increases (by definition) and its price rises; at the same time, the more it rises then the more attractive it looks as an investment, so more people buy it.

Having Bitcoin and using it is Bitcoin's use-case, price and adoption are correlated, and thus the positive feedback loop is closed. Its price rises because more people use it, and more people use it because its price rises.