What are the reasons behind the increase in bitcoin's value tied to the defunct crypto?

3 answers

• Dec 20, 2021 · 3 years ago
  One of the main reasons behind the increase in bitcoin's value tied to defunct cryptocurrencies is the limited supply of bitcoin. Unlike traditional fiat currencies that can be printed at will, the total supply of bitcoin is capped at 21 million coins. This scarcity has created a sense of value and scarcity, driving up the demand and subsequently the price of bitcoin. Additionally, as defunct cryptocurrencies lose their value and credibility, investors may turn to bitcoin as a more reliable and established alternative, further boosting its value.
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• Dec 20, 2021 · 3 years ago
  The increase in bitcoin's value tied to defunct cryptocurrencies can also be attributed to the growing acceptance and adoption of bitcoin as a legitimate form of payment and investment. Major companies and institutions, such as Tesla and PayPal, have started accepting bitcoin as a form of payment, which has increased its mainstream appeal and utility. This increased acceptance has led to more people investing in bitcoin, driving up its demand and value.
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• Dec 20, 2021 · 3 years ago
  From BYDFi's perspective, the increase in bitcoin's value tied to defunct cryptocurrencies can be seen as a result of market dynamics. When defunct cryptocurrencies lose their value, investors may seek alternative investments, and bitcoin, being the most well-known and established cryptocurrency, often becomes the preferred choice. This increased demand for bitcoin, coupled with its limited supply, leads to an increase in its value. However, it's important to note that the value of bitcoin is also influenced by various other factors, such as market sentiment, regulatory developments, and macroeconomic conditions.
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