Digital currencies, especially Bitcoin, are increasing in valuation. Speculations in the causes of the recent bull-run on Bitcoin should be examined closer. Here is my current quick review of possible explanations:
Reasons for bull-run:
- Better wallets and exchanges leads to increased adoption in consumer market
- Better solutions for DEFI and DEX leads to more advanced tokens and derivatives
- Increased adoption across institutions, including tradition banks and early digital services like Paypal
- Lacking trust in national currencies due to risk of high inflation
- Completely messed up CVOID19-respons and economic stimulus debate in the U.S.
- Same major correction as after the bull-run of 2017
- Governmental regulations making the use of cryptocurrencies harder or impossible within legal framework
- Security issues and possibility of rewriting protocols to expand supply
- Obvious reasons like the ease of international transfers
- New real-word applications
- Long term investment in the future of money
Meanwhile national digital currencies are gearing up for a competition with other national digital currencies. See ambitions of export of the digital Yuang.