Bitcoin comes into this world at a fixed supply rate. Demand is currently exceeding supply, so the price goes up. With bitcoin so far, the higher the price, the more press is generated, which increases demand, so we have a feedback loop.
The only difference is, demand can change very quickly, causing drastic swings in price. Which then generates press, which generates demand.
Most every crypto currency will follow the same model. As long as enough demand outpaces supply, the price will rise.
Bitcoin comes into this world at a fixed supply rate. Demand is currently exceeding supply, so the price goes up. With bitcoin so far, the higher the price, the more press is generated, which increases demand, so we have a feedback loop.
The only difference is, demand can change very quickly, causing drastic swings in price. Which then generates press, which generates demand.
Most every crypto currency will follow the same model. As long as enough demand outpaces supply, the price will rise.