This is an old article by Su Zhu and Hasu that I just stumbled across again. It’s a quick read and a good, high-level reminder (or primer) of why financial, geopolitical, and technological trends are in Bitcoin’s favor.
Bitcoin is a new financial network with a token (also called bitcoin but with a lowercase ‘b’) that is currently in its monetization phase. During this phase, its price is largely determined by expectations of future growth — making it expectedly volatile. Despite the cost and complexity, people use bitcoin on the ground today in developing countries and to make unstoppable transactions online. The more people use it, the less volatile it will become, encouraging further adoption.
Since bitcoin’s supply is fixed (and substitute goods hard to make), the price is largely a function of demand to hold it. We identified three major trends in the world that could lead to significant demand down the road. Demand, that bitcoin is well positioned to serve — often as the only competitor — and that could create significant upside for existing holders.