Bitcoin has an incentivized salesforce that keeps drawing in new money.
The value of bitcoin is surging once again.
Depending on who you ask, bitcoin is either a currency (it’s uncommonly used as one) or a store of value (a very lousy one). One thing is for sure, though: some people have gotten rich off of bitcoin.
I’d argue that a key reason for bitcoin’s current valuation is that it has a massive built-in salesforce. People who own bitcoin spend a lot of time talking about how it’s so great and everyone else is missing the boat. This could be because they really think it’s a great opportunity, but it’s also because getting more people to buy bitcoin is the only way it keeps going up in value. The cryptocurrency needs to constantly draw in new money.
I see a bit of a parallel to domain names and .com domains. Post a story about new top level domain names, and you’re guaranteed to get comments from .com owners poo-pooing extensions that don’t end in .com.
Why? One, I think they genuinely believe it. Two, it’s in .com owner’s best interest to keep pitching the domain as the gold standard.
(To be clear, I think trading in domain names and bitcoin are very, very different. But the two tend to draw many of the same types of people, so your domain investor friend likely owns a bit of cryptocurrency.)