Bitcoin has thus tripled over a several month period, and has more than quadrupled over this last year, and is up close to 7,2% over the past five years. If you were lucky enough to get onto a low-volume, undiscovered small-cap company in early 2016, you probably don’t have a stock that’s outperformed the mighty bitcoin.
However with many great investments, including but not limited to electric vehicles, renewable energy, and anything having to do with AI or cloud. One investment indefinitely outperforms them all the mighty bitcoin.
the extremely Bullish bitcoin investors seen the 21 million dollar token cap on bitcoin as the drives thrust behind this rally. Albeit a limited number of mine-able tokens means that bitcoin will thus avoid the deflationary aspect that plagues fiat currencies worldwide, like the U.S. dollar. The belief is that as the U.S. (and global) money supply continues to grow, the value of each bitcoin will intern soar.
Investors also praise the versatility of bitcoin. Divisible right down to eight decimal places, getting in on the bitcoin craze i.e., FOMO Fear of missing out– can be done with just a few bucks. Furthermore a number of businesses now accept bitcoin as a form of payment
The main problem is that bitcoin’s value appears to be dependent on scarcity and also it’s utility — albeit it’s decentralization makes it such that only one is possible. If it’s viewed as scarce, then there will never be enough bitcoin in circulation to make it a reliable medium of exchange (i.e., minimal utility). Meanwhile, if the goal is to make bitcoin a replacement for cash, then it won’t be scarce, because its token limit will need to be raised.
Thus here is a extremely valid argument could be made that bitcoin provides nothing more than the false perception of scarcity. Rather than being constrained by anything tangible, the only thing stopping bitcoin’s token limit from being raised is community consensus. Although the limits may be the only thing that drives bitcoin further into scarcity, thus it’s potential is phenomenal and and estimated to climb to 100k per Bitcoin. Time will tell, but the cards are in Bitcoins favor.