Bitcoin halved on May 11, 2020 which incentives mining because of a lower inflation, lower supply and higher demand. On top of this, you have speculators timing their investment around this halving cycle to get these crazy spikes. This is built into the protocol and will continue to occur until 2140.
Since fewer people sell coins than buy them over time, you end up with a more and more stable asset class which derives value from being a decentralized currency that can be sent across the world without being hindered by banks and governments.
While Bitcoin shouldn't be viewed as an 'investment' (no more than gold is), it would be a mistake to simply dismiss the idea of holding any. A lot of smart people buy gold etf's to hedge against inflation. Bitcoin is a way to hedge against central banks, sanctions, and global money transfer restrictions.
> Bitcoin is a way to hedge against central banks, sanctions, and global money transfer restrictions.
It's beautiful to have a technology that offers the choice to take back your money and branch off into a system where governments can't print money to finance their wars.
Since fewer people sell coins than buy them over time, you end up with a more and more stable asset class which derives value from being a decentralized currency that can be sent across the world without being hindered by banks and governments.
While Bitcoin shouldn't be viewed as an 'investment' (no more than gold is), it would be a mistake to simply dismiss the idea of holding any. A lot of smart people buy gold etf's to hedge against inflation. Bitcoin is a way to hedge against central banks, sanctions, and global money transfer restrictions.