@Eric Carr all this wonderful news you keep posting, yet Bitcoin is worth less today than it was one year ago! Maybe it is the news you are ignoring that is the big story.
Biden is issuing an executive order on crypto directing government agencies to study crypto. The main objective is regulation and taxation. The government realizes that crypto has been a haven for money laundering and tax evasion. People buy things with crypto and don't report the gains. People who buy things with cryto are not aware (or more likely don't care) that they need to pay taxes on the gain. Buying things with crypto comes with a big tax bill, for those who got in early. This is the trouble with the idea that accepting Bitcoin will force its value up, because it forces a huge tax bill on people. You are actually better off as a Bitcoin investor if nobody accepts it, because then nobody sells it.
The second goal is for the government to explore a crypto based USD. Some have argued nobody wants a government based crypto because the decentralizes aspect of regular crypto keeps it out of government control. This is the problem. The government will control crypto in the end. People who think this won't happen have a fundamental misunderstanding of power. So what is the appeal of crypto once the government has control?
Notice that the value of Bitcoin surged when the government started flooding the economy with cash? Notice the value has stalled as that cash has all been spent. It isn't adoption that is driving up value, because Bitcoin has had more "good news" in that last 12 months than the previous 12 years. Despite that, Bitcoin is worth the same it was 12 months ago.
Notice how the super bowl had several crypto commercials? Crypto is reaching a feverish level and they need new customers to feed the frenzy. I have referred to it as a digital pyramid scheme. You need more new investors continuously to pay off the ones that are cashing out. At some point there are no new investors, the music stops, everyone runs for their chairs and you have a crash.
@J Zev J. made a good point that "scarcity doesn't necessarily mean it's valuable". Keep in mind that Bitcoin is artificial scarcity. A good analogy is baseball cards. I used to collect them back in the 1980's. The value skyrocketed due to limited run sizes. Up until the 1980's there was one baseball card company, Topps. Then Fleer, Donruss, Upperdeck and others came out with sets. They all released "limited edition" runs in an effort to create scarcity. In the end, the value of ALL baseball cards plunged, including Topps (the original). The point is although Topps was limited, baseball cards where not. Other brands substituted and were the same. The only advantage that Bitcoin has is being first. The main reason to pick Bitcoin over substitutes is historic raise in value, which gives investors like you confidence in future gain. The problem is new investors want to ride up 400% gains, like you did. They want new emerging currencies. This hurts Bitcoins value and hurts confidence in future gains. The point is, you are not buying a scarce commodity. It can be copied and it has been copied. It can be made better and will be made better.
