A lot of factors were covered in this thread https://www.reddit.com/r/Bitcoin/comments/175uykl/can_someone_please_explain_fundamentally_why/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

I like to give another point of view.

Humans are enterprising, inquisitive, invest in R&D and come up with great many products and services. This is reflected in an ever increasing GDP (Gross Domestic product). A country like USA that is promotes free enterprise, rule of law, patent protection, protection from government confiscation of land/property/wealth creates a self-fulfilling prophecy of ever increasing GDP.

The GDP translates to wealth under the right conditions. A company (say like Costco) that is able to offer the goods/services is able to trade in the market and is given a market value. If you had a regime that has punitive taxes and confiscation, then the market value is lower. In western countries, the market value is generally higher.

People have a tendency to store/convert some of this market value (wealth) in other forms like Art (think Picasso etc), land, Gold etc. Now this conversion is happening to new store of wealth like Bitcoin.

Here is the graph of the real GDP of USA

https://fred.stlouisfed.org/series/GDPC1
Look at the gradual growth. Why is it happening? It is due to net immigration, population growth, productivity etc. This will go on for centuries. More wealth will be created globally. A decent portion of that wealth will flow into Bitcoin.

IF there is no limit to GDP growth (in real terms), then there's no limit to price of Bitcoin.

When will this stop?

• if global population decline offsets productivity growth

• nuclear war

• no innovation, no rule of law ....