Why is Bitcoin going up forever

Satoshi was right. The production cost of a commodity determines its price . Talking about gold AISC (production cost ) and the Btc price see the peaks in 2012 and 2022 for both and same lows in 2016. After the halving the cost of bitcoin production suddenly doubles because the quantity of #Bitcoin produced halves, for example from the current production cost of 35k it becomes 70k post halving. So anyone can buy bitcoin on the market at a 50% discount, because the price on the market is still 35k, but the production cost is 70k.

Hence, everyone will rush to buy #bitcoin at 35k, then the price rises and reaches 70k, closing the gap. Furthermore, the supply remains fixed, while for gold this can be increased (with the high price new mines are opened). The value of the asset lies in the production cost, and this drives the market price. All of this without taking into account the fomo and speculation which is being created in each cycle. There is no possibility that the price of bitcoin will not continue to rise in the long term.

While Satoshi took the gold production’s cost as an example to better explain the difficulty adjustment , we can use its comparison with the #btc price also to understand the halving mechanism and the subsequent price rise .

So why is #Bitcoin so different and what makes it to trend up? The difficulty adjustment is the answer. In fact, it represents the magic formula which allows, whenever the price goes below the cost of production and thanks to the difficulty diminishing as per the #btc protocol, to entice miners to turn the machines on again because they can now produce more bitcoin for the same electrical cost. This is turn elevates the costs of production therefore making the price to increase.

After you' ve read this post i'll leave you with a very last question: How might this mechanism not to make the fair value of #bitcoin to trend up forever ? If you're answer is: "in no f*ing way" , as it should, then rush to buy and hold #btc and never look back.