Can’t speak about cryptocurrencies in general because I don’t understand them either.
Bitcoin is cash itself. Just as rupee depreciates against dollar, dollar is depreciating against bitcoin because of its superior properties. Its supply is fixed and transactions cannot be censored. Just as people maximizing dollar net worth will evaluate investments in terms of dollars – that is whether a certain investment will increase their net worth when measured in dollars – there is a growing community of people maximizing their bitcoin net worth, who will evaluate investments from the perspective of increasing the amount of bitcoin they have. A fixed supply coupled with the growth of earning power of Bitcoin community itself creates a positive trend for purchasing power of bitcoin. The rest are forex traders and they are the main users of crypto exchanges. They could be from either community and are here to take advantage of this rising trend. They provide liquidity and seek to benefit by trading price volatility.
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