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It would be a combination of:

* supply

* demand

The supply is well-known in advance, and is an advantage to Bitcoin. US M2 money supply grew 8.04% in the past year [0], while Bitcoin's grew ~1.75% [1].

Demand is very volatile, and suffers from the bandwagon effect (price increase -> buy, price decrease -> sell).

[0] - https://ycharts.com/indicators/us_m2_money_supply_yoy

[1] - https://charts.woobull.com/bitcoin-inflation/




Yes, I heard there was a huge demand for Tulips back in the day...


The tulip bubble did not have 80% crashes going to higher and higher floors.




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