With the recent record breaking rise in the value of Bitcoin many news stories are covering the cryptocurrency in their news cycles but they lack a fundamental understanding of what Bitcoin is.
Because of this they are comparing Bitcoin to other assets and falsely claim that Bitcoin is in a bubble that will soon burst.
What they don't understand is what makes Bitcoin valuable and why it will continue to rise in price as more people use it.
Simply put, the more people that use a currency that is becoming more scarce over time the higher it's value will be.
More Demand + More Scarcity = Higher Price
Unlike fiat currencies that can be printed at will Bitcoin is mathematically programmed to create a finite amount over a specific period of time.
More people using a currency that at the same time is becoming more scarce means the price of that currency will continue to rise with the demand.
It's very simple math really.
Here's a video that will help explain it more.
John McAfee "Bitcoin is Not a Bubble" August 2017 Update
Do you own Bitcoin? Do you use it for transactions or are you holding it as a store of value?
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