Why Bitcoin is so expensive?

@daniela 

There are several reasons why Bitcoin is often perceived as expensive:

1. Limited Supply: Bitcoin has a predetermined maximum supply of 21 million coins. This scarcity, combined with an increasing demand, contributes to its higher price.
2. Increasing Demand: As more people become interested in Bitcoin, the demand for it rises. This increased demand, driven by individuals, institutional investors, and companies, can result in a higher price.
3. Speculation: Bitcoin is known for its price volatility, making it attractive to speculators who believe they can profit from short-term price fluctuations. This speculative activity can drive up the price.
4. Network Effect: Bitcoin was the first successful and widely recognized cryptocurrency. Its first-mover advantage has led to a strong network effect, where more individuals and businesses adopt Bitcoin as a store of value or medium of exchange. This network effect contributes to its higher price.
5. Technological Advancements: Bitcoin's underlying technology, blockchain, has potential applications beyond just digital currency. As new use cases and advancements are made in the blockchain industry, it can generate positive sentiment and interest in Bitcoin, leading to higher prices.

It is important to note that the price of Bitcoin can be highly volatile and influenced by various external factors, such as regulatory changes, market sentiment, and economic conditions.