Bitcoin is powered by a shared belief in its value. While it has been powered by scams as well, couch couch Tether, tt seems to be getting more adherents to believing that it is intrinsically valuable. The fact that it tends to go up so quickly also yields to FOMO.
Because Bitcoin is just shared belief, it is hard to dispel that belief via real-world events such as earnings releases and other things that affect more grounded investments.
Bitcoin is more of a movement and it is somewhat revolutionary in that it aims to replace our existing monetary system of central banks and interest rates, etc.
I think the main threats to Bitcoin could be governmental if it continues to grow. If it starts to be a reserve currency competitor to USD which could affect treasury sales, I could see it being banned by the US government and others... but I am not smart enough to work out all that would play out if Bitcoin became that important.
I wonder if Bitcoin will ever be forced to bend towards an inflationary monetary policy controlled by government like entities? It is code and code and always be changed. If it is so successful it becomes necessary to co-opt it into the existing system.... weird stuff.
Because Bitcoin is just shared belief, it is hard to dispel that belief via real-world events such as earnings releases and other things that affect more grounded investments.
Bitcoin is more of a movement and it is somewhat revolutionary in that it aims to replace our existing monetary system of central banks and interest rates, etc.
I think the main threats to Bitcoin could be governmental if it continues to grow. If it starts to be a reserve currency competitor to USD which could affect treasury sales, I could see it being banned by the US government and others... but I am not smart enough to work out all that would play out if Bitcoin became that important.
I wonder if Bitcoin will ever be forced to bend towards an inflationary monetary policy controlled by government like entities? It is code and code and always be changed. If it is so successful it becomes necessary to co-opt it into the existing system.... weird stuff.