The current Bitcoin and cryptocurrency craze has taken markets by storm. While gold remained relatively range-bound, Bitcoin was moving higher-a lot higher-until hitting the $20,000 market this week. The currency has since pulled back a bit, but it is likely not the end of the run higher. Without offering a guess as to just how high Bitcoin and cryptocurrencies could potentially go, perhaps the bigger question and issue at hand is why these instruments are garnering so much interest.
The monetary system has been run by central bankers for a long time. These central bankers control the supply of money, and have the ability to make changes to it as they see fit. Expanding the money supply is often used as a tool to fight an economic slowdown, and central banks did a lot of that in recent years with all of the QE programs that took place.