Here is the easiest way I can explain it:<p>Bitcoin is a social phenomena - no government or company backs it. The only reason it has value is if people value it. Bitcoin promoters have convinced people it's a store of value, like gold except digital. As the Cult of Bitcoin spreads, it doesn't take that many new enthusiasts to push the price up, as unlike literally all other commodities on earth, the supply of bitcoin is truly constrained and there cannot be anymore made in response to demand above the normal rate of inflation.<p>This time, big money, institutions, and the very rich are coming in addition to the widespread purchase by retail. The price is going to rise a lot.
It's not a coincidence that Bitcoin is hitting highs at the same time as the stock market. Both are highly speculative at this point, and historically correlated.<p>From back in June, a prediction that Bitcoin would catch up with the S&P 500 based on the historical correlation:<p><a href="https://cointelegraph.com/news/bitcoin-sp-500-correlation-means-it-should-cost-18k-says-analyst" rel="nofollow">https://cointelegraph.com/news/bitcoin-sp-500-correlation-me...</a>
Good thing about Bitcoin is that it might push for next gen computers (quantum computers etc.) to break it. It forces us to invent something even better. Until then I don't see Bitcoin going anywhere but up.
That Michael Saylor tweet is hilarious:<p><i>"#Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy."</i><p>Certainly it's that, and not rampant Tether printing / fraud / lack of exit off-ramps / institutionaland retail investor ignorance