What started off as a medium of exchange has appeal similar to that of a speculative asset. 15. As a store of value, cryptocurrencies like bitcoin have given impressive returns so far, but so did tulips in 17th century Netherlands. Cryptocurrencies are very much like a speculative or gambling contract working like a Ponzi scheme.
In addition, room for raising productivity and progress in information technology in recent years, for example, have allowed firms to absorb an increase in costs and thereby maintain their cautious stance toward raising prices. While affected by various factors, I view the underlying trend in prices as being determined by the aggregate supply-demand balance.