Is the BTC -> USD rise due to the loss of USD liquidity? Has it become too difficult for people to exchange BTC into USD?
All this article says to me... is that the BTC -> USD conversion is becoming harder and harder. Are there any economists out there who can muse upon theory and tell me what will happen as BTC -> USD conversion becomes harder?
No - but your point is a feasible reason for a BTC price rise.
Rather, the current BTC/USD rise is due to a influx of investment from China [1]. The Chinese government has been indirectly supporting the rise and adoption of Bitcoin through state-run Bitcoin documentaries [2]. This is seen by some as China pushing for alternatives to the USD as a world reserve currency (following US gvt shutdown) [3].
Is the BTC -> USD rise due to the loss of USD liquidity? Has it become too difficult for people to exchange BTC into USD?
All this article says to me... is that the BTC -> USD conversion is becoming harder and harder. Are there any economists out there who can muse upon theory and tell me what will happen as BTC -> USD conversion becomes harder?