In the last eighteen months, Bitcoin has seen a tremendous run-up in its price. From an all-time low of $4,000 per Bitcoin in March 2020 to the recent high of $67,000. Bitcoin’s price appreciation has been phenomenal and incomprehensible to those with no idea why Bitcoin is valuable and how the software protocol works.
Many disciplines come into play when understanding Bitcoin’s dynamics. Economics is one, and as a business owner, this was the discipline that initially led to my interest in Bitcoin. Other fields include an understanding of how computer software works, how the more extensive financial infrastructure of the world works and, to a certain extent, politics. In my last newsletter, I went to great lengths to explain how politics ties intimately to money in our current society and how this is somewhat unusual historically speaking.
In the last few years, we have seen dramatic events in the political sphere. First, the Brexit vote initiated a shocking series of events for many people as the UK contemplated the end of its collaboration with the EU, then the election of Trump in the US, then the pandemic. I do not intend to write a political essay here, so I won’t go on, but you get the idea…