At some point I am really messed up and lost in vein when it comes to bitcoin's price. I think that every second it gets more and more a victim of speculation and gets abandoned from its original idea.
If bitcoin could perform very well at 6K some months ago, why it become 60K after some months? And then it went back to 30K but was still functioning very smoothly, i.e. it was doing the job it was created for.
Again, If bitcoin could perform well at 30K some weeks ago, then why it worth 60K right now? I just don't get it when people say that bitcoin isn't speculated and all of these prices are just natural.
It has now evolved into something bigger than digital peer-to-peer payment method. It has now becomes an investment for many and many elites are getting into it. Institutions are having fear of missing out specially that large institutions are now into it. Aside from that, hyper inflation might happen in US and BTC could probably save you from that.
Bitcoin moves based on supply and demand, then Bitcoin demand continues to increase every year and with a limited supply of Bitcoin.
That's what causes the development of Bitcoin is very drastic and the price of Bitcoin is getting more expensive, now many institutions
and rich people are starting long term investments in Bitcoin. Making Bitcoin the best performing asset, therefore people prefer to use
Bitcoin for investment than the original purpose of Bitcoin being created as payment. Moreover, there are still very few countries that
legalize Bitcoin as a means of payment, finally Bitcoin is popular as an asset for investment. Even in the future the price of Bitcoin will be
more expensive, so some people end up deciding on Bitcoin as a retirement plan.
I totally agree with you, the best explanation I could not have seen, in fact the economy that is being generated within the Bitcoin ecosystem including the Blockchain, whales, investors, small investors, traders, those people who are putting their money in Hodl mode to ensure their relaxed and happy retirement, they are not doing it wrong, because the nature of BTC and its economy is clearly deflationary, and being deflationary it is the tool that will always kill the traditional economy based on debt and inflation, I think that is the point where the increase in the price of BTC is generated the most.