The Bitcoin (BTC) price surged to all-time highs on Wednesday, zipping past $20,000 in a show of bullish momentum for the flagship cryptocurrency.
Although it’s easy to draw parallels between this year’s bull market and the speculative frenzy that drove the 2017 rally, the foundations underpinning Bitcoin are much stronger today than they were just a few years ago.
While there are many metrics that could explain Bitcoin’s resurgence this year, it’s important to start from the very top. Unlike in 2017, investors today are accumulating Bitcoin with a clear purpose. The digital currency’s effectiveness as a hedge against inflation is leading to wider mainstream adoption, especially among savvy investors who understand monetary policy.
Since inception, Bitcoin has been a superior store of value than any other asset. The May 2020 deflationary halving event highlighted Bitcoin’s scarcity to a wider audience than ever before.
As crypto analytics firm…