Reasons Why Bitcoins are so expensive
Bitcoins isn’t really expensive but it gained a lot of worth in the last years. Prices for example for drugs still are the normal prices in $ or €, just calculated in another currency. If Bitcoin doubles worth, the prices will halve.
Investing in Bitcoins can make your assets grow. But if you buy Bitcoins just to pay illegal stuff, it doesn’t really matter what it’s worth.
It’s limited(besides mining) unlike real money and can’t be faked unlike real money not controlled by a state unlike real money and supposed to be anonymous.
Also it used to worth nothing but well people put value in anything and make it expensive cause it’s rare -> diamonds,gold,oil.
Bitcoin is expensive because of simple supply and demand. No need to go too far. It has a good demand and a limited supply.
also perceptions of the Cryptocurrency has also played a huge role considering its self regulating. for those attributing the value of bitcoins to money illusion i say bullshit. Bitcoin has not even hit its supposed value after the halving a few months back. I feel it is currently undervalued and a good 2-3 year investment.
it might be difficult to model bitcoin price reactions but its double and I’m currently working on that. I hope to share more when am through