Why BTC value is growing day by day ?

[rameshEl]

As you can see, I'm learning ABC in crypto currencies and studying this for last 3 – 4 months, even after reading all these web pages, forums etc, still I’m having one basic question needed to clear out. I would really thankful if someone can help me with this.

We all know, BTC is making a huge growth for past few years and as a result, people start to invest / trade in BTC. With my little knowledge I assume that no one is going to use BTC / couple of Sathoshi to purchase things as they are really good to keep (HODL) as the value is going high and high. But if you think of any of fiat currency, the value of money is depending on the use of it. For example, if everybody is keeping their money (fiat) in their pocket without spending, the market will not have enough money for trading and value of the currency will not goes up. Why the same principle not applicable for BTC ?

I’ve seen lot of answers like, market will not have morethan 21M BTC and that amount will be saturated by 2140, hence there will not be any inflation etc. But what I do not understand is, if a currency is not using (in trading purpose – you buy something with that money), what is the logic behind the reason of value of the money goes up ?       

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[alyssa85]

The hedge funds are plowing in, in preparation for the Chicago Mercantile Exchange listing bitcoin futures on December 11th (the estimated date of launch).

To be a true hedge fund you need to be long as well as short, so owning the underlying asset (bitcoin) allows them to then short on the CME. Having a lot of coins also means they can manipulate the price a bit. For example say they have gone short on the CME and want to force the bitcoin price down towards settlement time - easy, just sell the actual bitcoins you have bought.

Prepare for a very wild ride when the futures are launched.

[tientien1]

Why is bitcoin so intense?
What is bitcoin, it is virtual currency and not real value, it is not money issued by the state and printed, it is a group of people think and want it to be popular and widespread.
Bitcoin is being pursued by many and it is believed that it is due to the highly systematic and profitable nature of bitcoin.

[barabut]

It is pumping nowadays, I do not believe that this last movement after the fork can be sustainable, at the end this must be realise at some level. Waiting for the new comers.

[meer45]

The hedge funds are plowing in, in preparation for the Chicago Mercantile Exchange listing bitcoin futures on December 11th (the estimated date of launch).

To be a true hedge fund you need to be long as well as short, so owning the underlying asset (bitcoin) allows them to then short on the CME. Having a lot of coins also means they can manipulate the price a bit. For example say they have gone short on the CME and want to force the bitcoin price down towards settlement time - easy, just sell the actual bitcoins you have bought.

Prepare for a very wild ride when the futures are launched.

So do you think this increase is due to "big money" coming in? That would explain the very sudden surge in the price but I'm not entirely sure how sustainable this would be.

[anjuara29]

Bitcoin is pumping day by day, I don't believe that this last movement after the fork can be sustainable. BTC value growing depends on customers demand. According to their demand bitcoin's value is growing day by day.

[Dennbagus008]

Bitcoin is being chased by many people and it is believed that it is caused by the very systematic and advantageous bitcoin properties

[Oulay]

Bitcoin is acting more like gold than a currency in this regard.
Would you use gold to buy stuff on a daily basis?
Ofc no, but when you need the money you'll use that gold eventually.
Almost the same goes for bitcoin these days, it's not used as a currency as much as a store of value, and people only use it when they have to.
The difference between gold and bitcoin is that gold's price is stable while bitcoin's is fluctuating too much making it riskier to hold but more rewarding.

[tora]

More people are hearing about bitcoin and the financial press is reporting on it. Both of these increase demand for bitcoin.

[joy005]

I think. The day is going on and the people are concentrating on BTC. So day after day the btc value is increasing.

[Haunebu]

It is pretty obvious if you ask me op. Bitcoin has proved that it is am unstoppable force and that it will continue climbing up no matter how many governments around the world unite to try and take it down. This coin is truly something magical and I never thought something like this could become such a powerhouse when I first heard about it. With time, more and more people are realizing the true potential of this amazing coin which will help it continue to grow on a regular basis.

[kredittkortinfo-no]

The hedge fund/investor arguments make sense. Plus it's a frenzy and everyone is jumping on board, hoping they're not too late.

Be careful investing though. I bet the price could plunge at some point, losing 50-60% of its value.

[Lossika]

Every day new people come to buy bitcoin. They want to a quick profit amid rising BTC

[pri3oner]

Mass media, rumors, mess and greediness  There are a lot of factors but the main one in my opinion is effect of boomerang

[ManaMan]

As you can see, I'm learning ABC in crypto currencies and studying this for last 3 – 4 months, even after reading all these web pages, forums etc, still I’m having one basic question needed to clear out. I would really thankful if someone can help me with this.

We all know, BTC is making a huge growth for past few years and as a result, people start to invest / trade in BTC. With my little knowledge I assume that no one is going to use BTC / couple of Sathoshi to purchase things as they are really good to keep (HODL) as the value is going high and high. But if you think of any of fiat currency, the value of money is depending on the use of it. For example, if everybody is keeping their money (fiat) in their pocket without spending, the market will not have enough money for trading and value of the currency will not goes up. Why the same principle not applicable for BTC ?

I’ve seen lot of answers like, market will not have morethan 21M BTC and that amount will be saturated by 2140, hence there will not be any inflation etc. But what I do not understand is, if a currency is not using (in trading purpose – you buy something with that money), what is the logic behind the reason of value of the money goes up ?       

Many people have fear o missing out and when they look the uptrend... we are closing the year 2017 and if you look that at the begining of the year bitcoin was around 800$ and now we are waiting to hit 10 000 dollar mark. So people want to hop on the train and see where does it lead - this is great if you are holding btc but also it can be dangerous if people come just to make profit, leave and continue later on.

"With my little knowledge I assume that no one is going to use BTC / couple of Sathoshi to purchase things" you might be right about this until we see that btc price is somewhat stable.

[rameshEl]

Bitcoin is acting more like gold than a currency in this regard.
Would you use gold to buy stuff on a daily basis?
Ofc no, but when you need the money you'll use that gold eventually.
Almost the same goes for bitcoin these days, it's not used as a currency as much as a store of value, and people only use it when they have to.
The difference between gold and bitcoin is that gold's price is stable while bitcoin's is fluctuating too much making it riskier to hold but more rewarding.

Now this is a pretty good explanation. I believe, if we are thinking in a way that the prices go up as the number of investors increasing day by day, there will be a day which it will saturate. A day far recent than year 2140.   
Thanks for the explanation 

[Dharmendrax]

3 causes are necessary for grow any cryptocurrency rate
(demand supply and acceptance).

As you know about bitcoin
1:- Demand so high
2:- Supply too less
3:- Acceptance also too high

And one of the biggest resion.

The rate is also increasing day by day the becos trading of all altcoin from Bitcoin

For this reason, bitcoin price is increasing day by day.

[jeansergio173]

Why is bitcoin so intense?
What is bitcoin, it is virtual currency and not real value, it is not money issued by the state and printed, it is a group of people think and want it to be popular and widespread.
Bitcoin is being pursued by many and it is believed that it is due to the highly systematic and profitable nature of bitcoin

[The Sceptical Chymist]

Do a search in the bitcoin discussion section: search for "increasing day by day" and you'll see way more results for this phrase than should even be possible.  Shitposters love to utter these words, repeat them over and over.  It's tiring, and for the most part the phrase isn't strictly true.  Bitcoin has mostly been up over the past few years but it doesn't "increase day by day".

It's market forces in action.  That's why the price keeps going up, supply and demand--what is so hard for people to understand about this?  In the 1920s, it was all about the new thing at the time, radio.  Before that it was railroads.  More recently it's been social media stocks, and before that it was internet and biotech stocks.  In 2011, it was precious metals.  People get manias about anything you can imagine, and demand skyrockets.  With bitcoin the supply is capped at 21 million coins, so the bigger the demand the higher the price.  This isn't rocket science and should be obvious to anyone who's taken even an introductory course in economics.

[Creepings]

The best reason here is that, bitcoin's price depends on the demand and supply thing. The higher the demand, higher price, low supply, high price.

Just think of it, bitcoin is predicted to pump to $10000 so there will be a lot of people who will be buying bitcoin and hold it in until the pump, that means the demand is increasing proportional to the price. That means that if we can see the price continuing to increase day by day, it means the demand is pretty high and a lot of money is being put down into bitcoin.