The price of bitcoin recently reached $100,000 for the first time, marking a significant milestone for the digital currency that has seen a surge in demand following the election of crypto-friendly candidates, including President-elect Donald Trump. Bitcoin’s value has surged by more than 45% since November 5 and has more than doubled year-to-date. The rise of bitcoin, which emerged 15 years ago from a white paper by the mysterious Satoshi Nakamoto, has led to the creation of a wide array of digital currencies and technological innovations in peer-to-peer transactions. However, cryptocurrencies have also been associated with cybercrimes and scams, prompting skepticism from federal regulators. In the wake of the election, bitcoin advocates are hopeful for a more favorable regulatory environment that could lead to increased institutional investment in bitcoin and greater profitability in mining. Trump, once a skeptic, has shown interest in establishing a U.S. bitcoin reserve. The price of bitcoin is notoriously volatile, but its long-term growth has been significant, with demand increasing through the popularity of bitcoin-tracking ETFs. BlackRock’s iShares Bitcoin Trust ETF, for example, reached a value of more than $45 billion since its launch in January. The growing interest in bitcoin as a hedge against geopolitical risks, particularly inflation-induced currency devaluations, suggests that mainstream adoption of the cryptocurrency may reach a tipping point in the future.
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