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by sprw121
3201 days ago
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I've been following bitcoin for a while and understand that there's been interesting stuff going on the the space for a while. That said I really can't understand what fundamentals could possibly be driving the recent price rally. I started to get into it more heavily back in late 2016 when there was legitimate volume and fundaments due to use as a instrument to avoid Chinese currency controls. But now it seems like it's solely a speculative thing, albeit with some relationship with the greater blockchain ecosystem. Even if blockchain technologies do take off, why would bitcoin benefit or gain a some fundamentals in the market? |
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So, it's "market cap" is not based on shares like a stock is, it's more like other forms of money.
Yet its price is the result of it going thru the technology adoption lifecycle, and it keeps jumping up as inflation slows and ever wider groups of adopters start owning some.
In the past year, it has been made much more easily owned and accessible as an investment in South Korea and Japan, and of course it is highly relevant to the Chinese. These trends will continue for awhile.
It will be "speculative" until it is mainstream. The only thing making it "speculative" is that it isn't more widely adopted, but to be widely adopted there will have to be much higher prices, given the very limited supply.
There's not going to be enough bitcoin for every millionaire in the world to own even one of them.