Bitcoin's new all-time price highs are drawing investors who see long-term high yields. Even investors who don't really understand cryptocurrencies or those who said they are too violate are taking a second look at bitcoins. Unfortunately, the altcoin's popularity has its liquid supply decreasing. It's simple Economics 101; as the supply of bitcoins on exchanges shrinks and demand increases, the price rises. BTC whales are people who have over 1,000 bitcoins in their wallet. There is a growing number of whales as the price rises and the supply shrinks.

Less than 13 percent of all bitcoins are available to buy on exchanges. The supply is finite and investors are still buying in. You will see large investors, like Grayscale Bitcoin Trust, buying more bitcoin in six months than the amount mined during that time. With Grayscale, investors buy bitcoin through their own brokerage accounts. The company stores it safely for them.

Investors are jumping in as notable investment advisors, including Scott Minerd, CIO of Guggenheim Global, Blackrock CIO Rick Rieder and Tudor Investments founder Paul Tudor Jones say buying bitcoin is a profit-maximizing investment strategy.

There are about roughly four million liquid bitcoins available today, and the number is steadily decreasing. PayPal recently announced it is extending its crypto purchasing app to people outside the United States. The ease and security offered with attract smaller investors, if there are any bitcoins left to buy.

Can BTC miners keep up with the demand? China dominates the BTC mining sector, but the cost of a mining rig is rising sharply because of a global chip shortage. Smaller miners across the globe are being eliminated as the cost of a new computer able to perform mining operations has doubled. Even those who can afford one are finding it hard to get their hands on a new or used one. Analysts look at the amount of bitcoins mined to help estimate future prices.