The Real Reason for Bitcoin's Rise

[BobK71]

The world has started to realize how bitcoins plays in the world today... Many countries have opens its door to Bitcoins or cryptocurrency nowadays... howbeit, the reason for Bitcoin's rise.  The demand has raised since it birth and although many countries want to stop it,  the use of bitcoins has already proliferated... The ease of payment of so, the carrying of cash in our pockets has diminished if not gone ... and all that stuff... lead to the use of cryptocurrency more easy....

Sure, a couple of anti-imperial countries have tried to suppress Bitcoin (no need to name names!)  But if the US or allies did this, it would be big trouble for the asset.  In fact, I suspect Bitcoin is probably being supported by the Western elites after the losses from Chinese and Russian actions.

[Bitcoinjheta]

The world has started to realize how bitcoins plays in the world today... Many countries have opens its door to Bitcoins or cryptocurrency nowadays... howbeit, the reason for Bitcoin's rise.  The demand has raised since it birth and although many countries want to stop it,  the use of bitcoins has already proliferated... The ease of payment of so, the carrying of cash in our pockets has diminished if not gone ... and all that stuff... lead to the use of cryptocurrency more easy....

Sure, a couple of anti-imperial countries have tried to suppress Bitcoin (no need to name names!)  But if the US or allies did this, it would be big trouble for the asset.  In fact, I suspect Bitcoin is probably being supported by the Western elites after the losses from Chinese and Russian actions.

Initially the reason why bitcoin will rise up its because they have a less supply come out over the demand. More over with the people choice weather there coin will hold until its time to invest. Thats why many of those investors intent to invest in putting there money on a bitcoin and help it grow when its rip they earn a big profit.

[bitbob82]

The world has started to realize how bitcoins plays in the world today... Many countries have opens its door to Bitcoins or cryptocurrency nowadays... howbeit, the reason for Bitcoin's rise.  The demand has raised since it birth and although many countries want to stop it,  the use of bitcoins has already proliferated... The ease of payment of so, the carrying of cash in our pockets has diminished if not gone ... and all that stuff... lead to the use of cryptocurrency more easy....

Sure, a couple of anti-imperial countries have tried to suppress Bitcoin (no need to name names!)  But if the US or allies did this, it would be big trouble for the asset.  In fact, I suspect Bitcoin is probably being supported by the Western elites after the losses from Chinese and Russian actions.

Initially the reason why bitcoin will rise up its because they have a less supply come out over the demand. More over with the people choice weather there coin will hold until its time to invest. Thats why many of those investors intent to invest in putting there money on a bitcoin and help it grow when its rip they earn a big profit.

The demand is now increasing because of the popularity of bitcoin, in fact bitcoin is now becoming more and mroe popular through out the world and that is the reason that the investors and the users of bitcoin are increasing from time to time. Most of the people are holding their bitcoin which is also a reason which is causing bitcoin more expensive. i sure that in future the demand of bitcoin will continue increasing.

[SvenBomvolen]

Keeping the inflation low and the rising inequality have no relation.
Actually the increased inflation will make the elite more wealthy.The inflation hits the people with fixed income
like workers and retired people.Rich people become richer because of the increasing asset prices.
I don`t think that cryptocurrencies are an alternative to the fiat economy,they are still tied with the fiat economy and we have to make them independent from the US dollar and the other fiat currencies.

This world is ruled by the elite and if Bitcoin will ever replace fiat in this function nothing actually will change. One elite will replace by the other, those people who have a lot of coins. I suppose those theory is just the writer's opinion and it wasn't actually finished, because of I don't see all possible scenarios of development of the theory.

[mrcash02]

Keeping the inflation low and the rising inequality have no relation.
Actually the increased inflation will make the elite more wealthy.The inflation hits the people with fixed income
like workers and retired people.Rich people become richer because of the increasing asset prices.
I don`t think that cryptocurrencies are an alternative to the fiat economy,they are still tied with the fiat economy and we have to make them independent from the US dollar and the other fiat currencies.

This world is ruled by the elite and if Bitcoin will ever replace fiat in this function nothing actually will change. One elite will replace by the other, those people who have a lot of coins. I suppose those theory is just the writer's opinion and it wasn't actually finished, because of I don't see all possible scenarios of development of the theory.

That is true. There will be always a new elite to rule the world and the next generation can be the earlier Bitcoin adopters who have thousands of Bitcoins. They are the billionaires of the future. I think there isn't anything we can do about it, I just hope the next elite generation will be more decent than this one. It's an illusion to try decreasing poverty if people are unable to think by themselves and to manage their own lifes. It's not only about money, but about behavior.

[Rana590]

Mainly it happens with demand of Bitcoin. Bitcoin is increasing day by day rapidly for it has great demand and it is almost stable though the price of bitcoin is not stable. If the supply is less than demand, then Bitcoin will be rising continuously.

[BobK71]

This world is ruled by the elite and if Bitcoin will ever replace fiat in this function nothing actually will change. One elite will replace by the other, those people who have a lot of coins. I suppose those theory is just the writer's opinion and it wasn't actually finished, because of I don't see all possible scenarios of development of the theory.

Further development of the theory is coming in future!  (You can only squeeze so much into a piece people will read.)

The major immediate consequence of Bitcoin taking a major role in the system is that the state-bank alliance will continue to run the world.  (Bitcoin holders today might become rich, but not much else.)  What Bitcoin will do (they hope) is to stabilize their system, by allowing them to push through a lot of inflation, to quickly wipe out the debt in the system, so they can start from scratch (in a financial sense.)

The large debt loads around the developed world are the major obstacle to central banks and governments trying to truly 'ignite animal spirits.'  Savers, ie creditors owning a lot of paper wealth, are reluctant to spend and invest because the value of their money is holding up pretty well.  This becomes a 'vicious cycle', since this keeps consumer prices low, and the system can't get rid of this condition until central banks feel free to engineer inflation.

[pendekar cinta]

indeed in various European countries have a lot of people who received bitcoin well even there got opens government but sometimes also appears polemic are able to change all conditions originally already harmonious be tension back for example, there are some of the people who refused to the presence of bitcoin in the country to keep the money original remain without replaced by a variety of coin others.

[novhitadaloma]

one of which affects the bitcoin price, is the trust of bitcoin users.

[Bitcoincole]

one of which affects the bitcoin price, is the trust of bitcoin users.

I can't say that I am perfectly right but I think the reason why bitcoin price rises is that through the years bitcoins has already widen its market to different countries wether the developed ones or the third world countries. As the years passed more and more people have proven that they earn from bitcoins and these testimonies encourages more and more people to invest, trade and mine bitcoins making its value higher too.

[miltonpogi]

Based on what I see in news and information about bitcoin, I think that the main reason of the bitcoin why it keep rising is because of the wave which normally happen on the price of bitcoin, as of now you will see that bitcoin price was fall from 300,000 to 285,000 after several days, but after a few days again it will start rising, in this statement it indicates that bitcoin value have a cycle from falling down to rising up and I called it as a wave, I guess also that this cycle has a connection from a demand, because when bitcoin has a very high demand in China it's price was very huge, but at the time that China banned bitcoin its value was surprisingly decrease, this is based on what I observed.

[BobK71]

indeed in various European countries have a lot of people who received bitcoin well even there got opens government but sometimes also appears polemic are able to change all conditions originally already harmonious be tension back for example, there are some of the people who refused to the presence of bitcoin in the country to keep the money original remain without replaced by a variety of coin others.

"Coins others..."  You must be French!  Still, my French is not as good as your English.

[LeGaulois]

one of which affects the bitcoin price, is the trust of bitcoin users.

I can't say that I am perfectly right but I think the reason why bitcoin price rises is that through the years bitcoins has already widen its market to different countries wether the developed ones or the third world countries. As the years passed more and more people have proven that they earn from bitcoins and these testimonies encourages more and more people to invest, trade and mine bitcoins making its value higher too.

A lot of people were buying bitcoins as much as they can with the hope to get free coins from bitcoin gold. There are those who may have missed the free coins from bitcoin cash and didn't want to miss the possibility to get free coins from bitcoin gold.
As you can see since, Bitcoin's value has been corrected from the hype

[Wesimon]

one of which affects the bitcoin price, is the trust of bitcoin users.

Yeah, users adapting bitcoin really has an important role in the increase of bitcoin's price. The more user the more the demand it will get and the higher the demand the higher higher the price it will have. And I guess, from time to the the people who adapt bitcoin is increasing rapidly which is a good sign that many people really trust bitcoin.

[BobK71]

one of which affects the bitcoin price, is the trust of bitcoin users.

I can't say that I am perfectly right but I think the reason why bitcoin price rises is that through the years bitcoins has already widen its market to different countries wether the developed ones or the third world countries. As the years passed more and more people have proven that they earn from bitcoins and these testimonies encourages more and more people to invest, trade and mine bitcoins making its value higher too.

It's sad but true that average people in the developing world really don't have much say in matters of global money.

It's true that they want to get out of their own governments' issued currency which is being debased worse than the dollar.  But where can they go?

If they go to the dollar, the system is working exactly as designed.

Going to gold as a country is a non-starter.  The IMF has a rule that a country will not receive bail-outs if it uses gold to back its currency.  In reality, the US and allies will first try bribing, then political upheaval, then assassination, and finally 'regime change' against any government foolish enough to endanger its main source of power.  (Read the insider account by John Perkins in "Confessions of An Economic Hit Man.")

Going to gold as individuals will work the same as going to Bitcoin as individuals.  The major central banks use derivative trading to suppress gold almost all the time (read "The Gold Cartel" or "Gold Wars.")  The only difference with Bitcoin is that it hasn't reached a price level where the elites can and want to suppress it.

Before Bitcoin reaches that level, everyone, including people in the developing world, is free to profit from it.  In fact, the Western central banks are probably buying Bitcoin.  (Of course, none of this is discussed in any way in the mainstream press.  By the time most people realize the Bitcoin story, it will be way too late for them.)

[crazycatwoman03]

From my point of view, so many reasons boost the price of Bitcoin, like the adoption, the increasing number of user cases, the maturity of its principle.

Yes that's true, the volume of bitcoin is depend on the user who save in their wallet. Well, the pumping and dumping happened when bitcoin user buy and sell the bitcoin. If you observe from small population of bitcoin in previous year and from now with popularity of bitcoin in our society, the price is so huge and continuously increase and increase.

[jaysabi]

Central banks and other elites have painted themselves into a corner.  There is too much debt in this world, and all of it is based on fiat money that central banks can print.

The elites must maintain trust in this fiat money by keeping inflation low.  That means, one way or another, all the growth in wealth must go to a small number of people.

But the more inequality they create, the more distorted and unstable the system becomes.  That is, more and more 'fancy' goods and services are produced just to satisfy the whimsical demands by the lucky people.  This demand can disappear any time financial asset values go down.

So central banks must keep financial asset values high just to keep this demand going.  But this only worsens the inequality, and the cycle continues.  Eventually, something will have to trigger a financial asset crash.

The only real solution to this problem, from the elites' point of view, is to inflate away the debt without destroying the trust in state money.  And the only way to do that is to devalue state money against non-state money.  Traditionally, that non-state money has been gold and silver.  Today, the (Western) elites are using Bitcoin and other cryptos to play that role.

You will not hear this perspective from the mainstream media or establishment economists!

First, anyone who says some variant of "the mainstream media won't tell you this, but..." starts out with a deficit of credibility. Add to that "established economists" and it's even worse. Who more likely has a proper understanding of a very complex financial system, those "established economists" with all their years of intensive study, degrees, etc., or some random armchair quarterback on an anonymous internet board?

That said, I find some of the ideas you presented interesting to think about, as they're framed in a way I haven't thought about them before. One idea I've held for a long time is that there is too much debt in the world, but to tie that to necessitating that all new wealth created goes to a small number of people is interesting to think about. I don't at all buy the conclusion at this point. After all, the owners of the debt get richer through future value creation the debt enables, and the natural remedy for too much debt existing is that future value creation doesn't materialize fast enough to pay off the debt. What happens in that case? The owners of the debt lose their investment, and since they're the rich ones anyway and the two premises are mutually exclusive, one has to be wrong. Either there is not too much debt in the world, or the system is not predicated on all future wealth growth going to a small number of people. The average person has immensely more wealth now than they did 50 years ago, as the standard for what is "average" has risen substantially.

Also, no central bank is purposely using crypto assets as a way to inflate the debts away. What you have identified as a deliberate action by central banks is 1) something they have no control over and 2) not causally linked. Bitcoin price has exploded because it's a bubble because people are caught in a manic cycle. If it was central bank-caused, gold would also be exploding in price as a natural hedge against inflation. A central bank can't choose which hedges rise in value and which don't.

The conspiracy theory doesn't check out.

[kokobaba880]

Up to now the real reason of bitcoin rise is the demand of the people and interest of the people. When people give it proper attention then the demand of this currency rise and as a result the prices goes up then many countries has started accepting this currency so that’s why the prices are rise very fast and those who invested in this currency at that time and now they are billionaire.

[filharvey]

From my point of view, so many reasons boost the price of Bitcoin, like the adoption, the increasing number of user cases, the maturity of its principle.

Exactly, bitcoin is totally embraced by everyone and create a huge impact to our living and in our economy. There is something in bitcoin that attract more investors and users, and that is of it's promising price. And now bitcoin is still coming back from its fall and it will become more stronger as it will survive from crisis.

Well it's not totally embraced by everyone. Every now and then we see a big name CEO or investor come out and say Bitcoin is shit. However, I do agree in the sense that Bitcoin is very very attractive to newer investors due to the insane gains.

No.It just seems that bitcoin is not embraced by all.We know that wall street people and CEOs of big financial organizations term bitcoin as a fraud or a bubble.We also hear the news that jamie dimon after making bitcoin price crash by just tweeting bitcoin as a fraud just bought some bitcoins himself.

Even we hear nowadays that executives related to wall streets no more like to avoid bitcoin since they belong to financial organizations and miss the huge benefits from bitcoins.

So,real reason for bitcoin's price rise is its ever increasing demand due to huge people getting attracted towards it on seeing its huge progress.

[Fretcy]

Bitcoin is a digital currency which started during the world economic crisis time of 2008- 2009, the bitcoin network has helped many to sustain in the financial market from affecting the financial crisis as the bitcoin network is outside the control of the central government or any financial body. As bitcoin network is decentralised no authority has control over the protocol and the government cannot impose tax on the users due this, transparency and security many users joined in the bitcoin community  and the demand increased accordingly which ultimately increases the value of bitcoins.