Bitcoin rises because the currency is deflationary. Meaning there is a limit to how many coins can exist. The cap was set to 21 million and to date there have been slightly over 17 million mined. It will take close to 100 years to complete the mining process. How so? Well, every 4 years since the creation of Bitcoin it goes through what’s called the halving. This means you’re only rewarded half the Bitcoin that was is mined per block. It the long run fewer Bitcoins get rewarded and become even more scarce.
When Bitcoin was first created the Genesis Block rewarded 50 Bitcoins per block. It was so simple to mine these coins you could run the program from a personal computer. We have gone thru 2 halvings and are now entering the third halving. In 2020, this will decrease the number of Bitcoin rewards to 6.25. And since demand continues to rise and outweigh supply, the value of the coin keeps going up. These are two major reasons why it continues to goes up.
There is a sneaky third reason as well. National currencies otherwise known as fiat currencies are being devalued all the time. Fiat currencies are created at will in the form of more debt. Take for instance Venezuela that when through hyperinflation recently. Every other cryptocurrency or sovereign currency went up. Their Bolivar ultimately crashed and cryptos and other currencies thrived. With Bitcoin you cannot create coins at will, your cannot counterfeit it, you cannot double spend. It’s the opposite of fiat currencies.
There are people who believe a similar crisis is looming not only for third world countries, but the Western society. Experts have been warning a national debt crisis that will take down the global economy. If you come to think about it there is no way anyone is ever going to pay this back this debt. Its all just a huge derivatives bubble waiting to burst. That’s why people hoard precious metals and crypto. However, the only issue with Gold and Silver is you don’t know if someone is selling you a coin that is just plated on the outside. It’s difficult to tell if your coins have real solid gold or silver in it. Also, you can’t send heavy metal coins instantaneously over a network like Bitcoin.
Why is Bitcoin the coin to own? Don’t we have choices on which coin to pick? The balance of power has already been set. It all started with the earliest Bitcoin adopters who believed this coin had any future. They worked endlessly on the code to make history. Billions have been invested in infrastructure and a lucky few still have access to the Bitcoins. Others are anonymously mining Bitcoin it remote places of the earth. People who lost access to their private key over time have lost their funds forever. This has increased the value tremendously. Some large accounts lay dormant till this day and nobody knows if these accounts will ever be accessed. One thing is certain is that this race shift global power poses a threat to the financial world. It is a race to establish a world currency and it cannot be reset without changing the balance of power.
The smart money institutions know this, which is why they keep bashing on Bitcoin, so they can get it a cheaper price. They even try to come out with their own version of Bitcoin however, the only real problem is that there would an unfair distribution of power. And nobody wants that. While it is possible to have this with Bitcoin, the earliest adopter have already chosen the winner. If you only knew the number of mining farms that are mining Bitcoin you would be baffled.
Here is an article on exactly who is mining Bitcoin even the anonymous ones. Visit this link to learn more, The Next Web.