Quote:
Originally Posted by afc wimbledon
as is always the case with this I ask why, I see no reason for it to go up or down or sideways, what mechanism in the larger economy makes it worth more or less?
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I’d agree with you in the short term there is no reason for the ups and downs of Bitcoin. Over the long term if it follows its track on being a gold replacement then its value will be dictated by two things.
The amount of wealth people want to store in an inflation independent currency and the amount of other coins that can gain enough popularity to provide a substitute.
So if demand for inflation independant currencies that are relatively easy to transfer and trade (relative to gold) increases then the value of a fixed supply coin goes up.