It is why its price is rising. But it's not because the currencies purchasing it are losing purchasing power. The size of the economies associated with those other currencies are just too enormous; from their perspective the amount of money sloshing toward Bitcoin is a drop in the bucket.
A much closer analogue might be what happened to Iceland's currency. The value of BTC (and, by association, its purchasing power) is going way up because supply isn't keeping up with demand. But unless there's some strong real growth to anchor that expansion, it's just a balloon economy. And what balloon economies tend to do is keep rising until the pressure differential causes them to pop.
A much closer analogue might be what happened to Iceland's currency. The value of BTC (and, by association, its purchasing power) is going way up because supply isn't keeping up with demand. But unless there's some strong real growth to anchor that expansion, it's just a balloon economy. And what balloon economies tend to do is keep rising until the pressure differential causes them to pop.