Bitcoin’s meteoric rise—from fractions of a cent to nearly $100,000—has captivated investors, economists, and technologists alike. With an average compound annual growth rate exceeding 150%, it stands as one of the most explosive asset classes in modern history. But what’s behind this relentless upward trajectory? Why is bitcoin going up?
Major financial institutions in Australia and around the world are now offering bitcoin-related services. El Salvador has adopted it as legal tender, and other nations are closely studying the model. At the heart of this surge lies a simple economic principle: limited supply meets growing demand. With a hard cap of 21 million bitcoins, scarcity is built into its code. But scarcity alone doesn’t explain mass adoption.
To understand the deeper forces driving bitcoin’s ascent, we turn to The Bitcoin Standard by Dr. Saifedean Ammous—a foundational text that explores money, sound monetary policy, and bitcoin’s role in the future of finance.
The 7 Key Drivers Behind Bitcoin’s Rise
1. A Better Form of Money
“While Bitcoin is a new invention of the digital age, the problems it purports to solve — namely, providing a form of money that is under the full command of its owner and likely to hold its value in the long run — are as old as human society itself.”
Money has always been central to human progress. From seashells to silver, societies have sought reliable mediums of exchange. Bitcoin represents the next evolution—a decentralized, digital form of money that combines durability, portability, divisibility, and scarcity.
Unlike traditional currencies controlled by governments or banks, bitcoin empowers individuals with full ownership. This autonomy resonates in an era where trust in institutions is waning. As more people recognize bitcoin as a superior form of money, demand naturally increases—fueling price growth.
👉 Discover how digital ownership is redefining financial independence.
2. The Hardest Money Ever Created
“The monetary media that survived for the longest are the ones that had very reliable mechanisms for restricting their supply growth — in other words, hard money.”
“Hard money” refers to currency with a predictable, limited supply. Gold was historically the hardest money available—but even gold inflates by about 1-3% annually due to mining. Bitcoin, by contrast, has a mathematically enforced supply cap of 21 million coins.
Every four years, the rate at which new bitcoins are created is halved—a process known as the halving. This deflationary mechanism ensures that over time, new supply diminishes until it reaches zero. As a result, bitcoin is the first truly scarce digital asset, immune to arbitrary inflation.
This hardness makes it exceptionally attractive during times of monetary instability.
3. A Hedge Against Hyperinflation
“Hyperinflation is a form of economic disaster unique to government money. There was never an example of hyperinflation with economies that operated a gold or silver standard.”
When central banks print money excessively, purchasing power erodes—sometimes catastrophically. Venezuela, Zimbabwe, and Turkey have all experienced hyperinflation in recent decades.
Bitcoin offers an escape hatch. Because no single entity can manipulate its supply, it acts as a digital fortress against currency collapse. Investors like Jack Dorsey have warned that hyperinflation could strike major economies—including the U.S.—due to unchecked monetary expansion.
As awareness grows, more people view bitcoin not just as an investment, but as financial insurance in uncertain times.
4. Economic Freedom for All
“Any person who owns Bitcoin achieves a degree of economic freedom which was not possible before its invention.”
In stable economies like Australia or Canada, access to banking and wealth preservation is often taken for granted. But globally, over 1.4 billion adults remain unbanked. In authoritarian regimes or countries with capital controls, saving money can be dangerous or impossible.
Bitcoin changes that. With just a smartphone and internet connection, anyone can store value without permission. In nations like Nigeria and Argentina, citizens use bitcoin to protect their savings from devaluation and government overreach.
This democratization of finance is one of the most powerful drivers of adoption—especially in regions where traditional systems fail.
5. Revolutionizing Remittance Payments
“Bitcoin’s advantage is that by bringing the finality of cash settlement to the digital world, it has created the fastest method for final settlement of large payments across long distances and national borders.”
Global remittances exceed $800 billion annually—yet fees average around 6%, with some corridors charging over 10%. Traditional systems are slow, opaque, and expensive.
Enter the Lightning Network, a second-layer protocol built on top of bitcoin. It enables near-instant, low-cost transactions across borders—ideal for sending money home to family members abroad.
For migrant workers and international businesses alike, bitcoin-powered remittances offer a faster, fairer alternative to legacy banking networks.
👉 See how borderless payments are transforming global finance.
6. Neutral Money in a Divided World
“Bitcoin, having no counterparty risk and no reliance on any third-party, is uniquely suited to play the same role that gold played in the gold standard. It is a neutral money for an international system that does not give any one country the ‘exorbitant privilege’ of issuing the global reserve currency.”
Today’s global financial system revolves around the U.S. dollar. While beneficial for America, this arrangement gives it outsized influence over international trade and sanctions.
Bitcoin offers a neutral alternative—a currency not tied to any nation-state or central bank. It treats all users equally, regardless of geography or political alignment.
Countries like El Salvador adopted bitcoin not just for economic stability, but to reduce dependence on foreign currencies and gain greater financial sovereignty.
7. The Era of Excessive Money Printing
“The total U.S. M2 measure of the money supply in 1971 was around $600 billion, while today it is in excess of $12 trillion, growing at an average annual rate of 6.7%.”
Since abandoning the gold standard in 1971, central banks have dramatically expanded money supplies—especially during crises. Quantitative easing, stimulus packages, and deficit spending have become routine.
But when more money chases the same goods and assets, prices rise across the board. Real estate, stocks, and commodities inflate—not necessarily due to intrinsic value growth, but because the dollar buys less.
Bitcoin’s fixed supply makes it a compelling store of value in such environments. Rather than asking “Why is bitcoin going up?” many now ask: “Is bitcoin rising—or is fiat currency losing value?”
Frequently Asked Questions
Why is bitcoin increasing in value?
Bitcoin’s value increases due to growing demand combined with a fixed supply of 21 million coins. Adoption by individuals, institutions, and governments drives demand, while halving events reduce new supply—creating upward price pressure.
Can bitcoin replace traditional money?
While full replacement is unlikely in the short term, bitcoin is increasingly seen as digital gold—a long-term store of value rather than daily spending currency. Its role may evolve as infrastructure improves.
Is bitcoin safe during economic crises?
Historically, bitcoin has performed well during periods of high inflation and financial uncertainty. Its decentralized nature and scarcity make it resilient to government interference and currency devaluation.
How does the Lightning Network improve bitcoin?
The Lightning Network enables fast, low-cost transactions by processing payments off-chain. This solves bitcoin’s scalability issues and makes microtransactions and remittances feasible.
Will bitcoin keep rising indefinitely?
No asset can grow exponentially forever. While current trends suggest significant upside potential—especially compared to gold’s market cap—bitcoin’s growth will likely slow as it matures into a stable monetary asset.
What risks should investors consider?
Bitcoin is volatile and influenced by regulation, macroeconomic trends, and market sentiment. While it offers long-term potential, investors should practice risk management and avoid overexposure.
👉 Learn how to navigate volatility with smart investment strategies.
The Future of Bitcoin: From Speculation to Stability
Bitcoin’s price surge over the past decade mirrors the growth curve of a high-potential startup. As Dr. Ammous notes, as long as adoption grows, its price will reflect speculative investment flows.
But if bitcoin achieves widespread integration—as a global reserve asset or foundational layer for digital finance—it may transition from speculative darling to stable monetary infrastructure.
Its market capitalization remains far below that of gold (~$13 trillion), suggesting room for substantial growth. Whether it becomes a primary savings tool or a backup system during crises, bitcoin’s core strengths—scarcity, decentralization, and censorship resistance—ensure its relevance in the evolving financial landscape.
As adoption accelerates and understanding deepens, one thing becomes clear: Bitcoin isn’t just going up—it’s redefining what money can be.
Core Keywords: Bitcoin price increase, hard money, hedge against inflation, economic freedom, remittance payments, neutral money, money printing