The Rise and Rise of Bitcoin – why digital currencies are challenging traditional banking systems

Digital currencies, especially Bitcoin, are increasing in valuation (+. Speculations in the causes of the recent bull-run on Bitcoin should be examined closer. Here is my current quick review of possible explanations:

Reasons for bull-run:

• Better wallets and exchanges and increased adoption in general population
• Increased adoption across institutions, including tradition banks and early digital services like Paypal
• Lacking trust in national currencies due to risk of high inflation
• Completely messed up political stimulus debate in the U.S.
• Completely messed up CVOID19-respons in the U.S.

Risks:

• Same major correction as after the bull-run of 2017
• Governmental regulations making the use of cryptocurrencies harder or impossible within legal framework
• Security issues and possibility of rewriting protocols to expand supply.

Rewards:

• Obvious reasons like the ease of international transfers
• New real-word applications
• Long term investment in the future of money.

Meanwhile national digital currencies are gearing up for a competition with other national digital currencies. See ambitions of export of the digital Yuang.