Opinion Bitcoin prices have seen remarkable growth over the weekend, with the values peaking over $4000/BTC. This jump in price point would usually yield far very greater concern of a bubble in the marketplace, since explosive growth is often a harbinger of future price collapse.
Investors are very excited because the value proposition for BTC is built around increasing value and liquidity.Increasing stability means increasing investor confidence, which leads to the increased investment and increasing prices. Bitcoin is the only investment vehicle with both currency and asset functionality, making it very uniquely designed for price accretion. Brendan Bernstein, analyst at Brainchild Holdings, agrees.
As values increase over time, investors and “hodlers” are able to use the Bitcoin profits in microtransactions. These microtransactions result in increasing the price stability, since pricing is no longer dependent on large-block transactions but rather smaller, less critical transactions.