and it’s because we understand two things:

1. Bitcoin is the best money the world has ever seen

2. ***Money becomes more useful the more people use it**.*

This is the opposite of how most investments work.

- If the price of a stock goes up, then the value decreases because its dividend yield is smaller in proportion to its price. If the price goes up too much, an investor would eventually want to sell for something cheaper, as they can objectively see it is overpriced.

- By contrast, $100 worth of bitcoins today has a better value than $100 worth several years ago, even though the price of Bitcoin is much greater. The reason is that the utility of bitcoin (money) has increased! There is more **optionality** for each dollar. There are more opportunities to unload the bitcoins at the owner's discretion.

It is precisely this positive feedback between price and value that means that the growth of money can be self-sustaining. *(Unfortunately, it equally applies to the downside too - its demonetization can be self-sustaining.)*

Money, through network effects, group psychology and social beliefs can therefore drive its own value into a practically-unlimited top value.

This is incredibly unintuitive to most people - everybody looks at assets like a business, expecting it to require hard work and prudent strategy in order for it to grow. Some even go as far as to critique Bitcoin as worthless because it doesn't produce income. This only exposes their fundamental misunderstanding of what money is.