I have no ideas why Bitcoin is going up, nor does anyone else. You will hear people wax on about China, money supply, politics and yada yada yada but it’s just noise.
-- The Freedom Of Speech Bull Market … and Bitcoin
Maybe so. Bitcoin has been around (as a real thing) for less than a decade vs. the U.S. Dollar, which has been around (again, as a real thing) since World War II. One can wax poetic about gold, silver or a piece of early art, but the yardstick is currently the U.S. Dollar. The concept of Bitcoin is legitimate, but like anything new it has to pay its dues and survive the test of time. Perhaps not sixty years like the U.S. Dollar, but if it can demonstrate another three to five years of stability, it might gain wider acceptance as a storer of value. By comparison, the Euro in U.S. Dollar terms, was worth about $1.50 as recently as 2011 - less than a decade ago. Currently, a Euro is worth $1.09, roughly 30% lower.
What does all of this mean about Bitcoin? In my opinion it means that to not be in Bitcoin is to not be diversified against shifts in geopolitics. We value the U.S. Dollar at a premium in part because of our recency bias, but in reality nobody knows where it will be in ten years. Do I want to be in U.S. Dollars? Of course. But I also want to be in Bitcoin. Not because Bitcoin's future is uncertain (it is) but because the future is uncertain.