Why is bitcoin so expensive?

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Cryptocurrency adoption is up.

Thanks to apps and exchanges like Coinbase, Bitcoin is significantly easier to buy now than ever before. These services also increase the profile of Bitcoin as a viable, tradable asset, not unlike other currencies and securities. With an increase in accessibility and popularity comes an increase in demand, which the current supply of bitcoins can’t seem to keep up with.

Other cryptocurrencies are up

Bitcoin isn’t the only cryptocurrency around. New rules governing Litecoin make it faster and easier to exchange than Bitcoin. Ethereum, another popular cryptocurrency, recently split into two different currencies, raising its profile and lowering its price of entry. As Bitcoin grew in popularity, so did all cryptocurrencies. Yet any other cryptocurrency is substantially cheaper than a single Bitcoin

Politics causes people leave traditional currencies

The U.S. election, the British “Brexit” vote, and heightened regulations on Chinese money made people consider alternatives to their country’s currency. Since Bitcoin is decentralized and not governed by any one country, it’s not susceptible to major changes in valuation should a country do something that could make their money less valuable. Many people are using the cryptocurrency to keep their money safe from devaluation, or even to use it as they would paper money.

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