People are buying crypto because it's going up. And the more it goes up the more people buy it. Typical momentum trade. But this can have violent reversals. Crypto is a bubble and can pop at any time. Look at dogecoin. It was started as a joke crypto and has since sky rocketed in value. But the truth is dogecoin and Bitcoin are not fundamentally different. Only Bitcoin was more popular first. There are something like 6000 crypto currencies now. The fact there are so many is detrimental to the success of crypto currencies. Gold worked as money because it was rare enough but also unique enough. It doesn't have 6000 substitutes. Maybe palladium and platinum but that's basically it.
People are buying crypto because it's going up. And the more it goes up the more people buy it. Typical momentum trade. But this can have violent reversals. Crypto is a bubble and can pop at any time. Look at dogecoin. It was started as a joke crypto and has since sky rocketed in value. But the truth is dogecoin and Bitcoin are not fundamentally different. Only Bitcoin was more popular first. There are something like 6000 crypto currencies now. The fact there are so many is detrimental to the success of crypto currencies. Gold worked as money because it was rare enough but also unique enough. It doesn't have 6000 substitutes. Maybe palladium and platinum but that's basically it.