Why bitcoin is so valuable - The law of supply and demand.

Bitcoin is valuable because there will only ever be 21 million ever made. This means that there is a fixed supply so as demand for this crypto goes up the price will go up. This is the opposite to the federal reserve currency notes that the government keeps printing into oblivion because the more Fed notes that are in circulation the less value they have which means prices relative to the dollar will continue to increase. This is known as inflation.

The law of supply and demand is a theory that explains the interaction between the supply of a resource and the demand for that resource. Generally, low supply and high demand increase price. In contrast, the greater the supply and the lower the demand, the price tends to fall.

The information contained in this blog is the authors opinion only and does not constitute financial advice or recommendation of any sort.