Inflation of fiat, deflation of Bitcoin due to mining rewards being halved, fear, uncertainty, the election, central banks, a general sense of malaise.
This is NOT to imply that bitcoin is a "good currency" (quite the contrary!), but for the time being, if Fiat has no bottom, Bitcoin has no top.
It seems like the market has determined that Bitcoin is a much better store of value than it is a transactional currency.
Also, I would argue that the primary force driving the price higher right now is the emergence of Bitcoin ETFs.
At the current rate ETFs are buying 10-15x more bitcoin per day than are being mined. In about 40 days from now the halving will cause daily supply increase to fall from the current rate of 900 Bitcoin per day to 450 Bitcoin per day , further driving up price pressure.
I sometimes look back with sadness that Bitcoin has deviated so far from it’s original purpose as peer-to-peer electronic cash, but I am starting to appreciate it’s benefits as a scarce digital asset with a perfectly inelastic supply.
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This is NOT to imply that bitcoin is a "good currency" (quite the contrary!), but for the time being, if Fiat has no bottom, Bitcoin has no top.
Also, I would argue that the primary force driving the price higher right now is the emergence of Bitcoin ETFs.
At the current rate ETFs are buying 10-15x more bitcoin per day than are being mined. In about 40 days from now the halving will cause daily supply increase to fall from the current rate of 900 Bitcoin per day to 450 Bitcoin per day , further driving up price pressure.
I sometimes look back with sadness that Bitcoin has deviated so far from it’s original purpose as peer-to-peer electronic cash, but I am starting to appreciate it’s benefits as a scarce digital asset with a perfectly inelastic supply.