Bitcoin’s Demand is Insatiable
To truly understand the power of Bitcoin one must understand the psychology of the buyer or investor of this new virtual currency.
The promise of a currency not tied to a central bank has enormous power in certain parts of the community – think Tea Party here. The lack of trust in centralized governments has a huge following and Bitcoin suits these folks just fine. These are the same folks that drove gold prices to soaring heights. My bet here is that those former gold buyers are slowly but surely giving Bitcoin a try. Why not? The appeal is quite similar and like gold, Bitcoin has no real utility.
I can imagine many disgusted with the Federal Reserve enjoy taking it to the man by propping up Bitcoin. It won’t take many investors to push Bitcoin higher. I can think of plenty of sources for that demand making it almost insatiable as the Bitcoin phenomenon takes flight.