On November 12, 2024, after the U.S. Presidential Elections, Bitcoin smashed its previous record value of just over $70K by crossing the $90K barrier. This meteoric surge has taken place over the course of just over a week, starting soon after Trump was announced the next president of our country.
On November 5, 2024—Election Day—Bitcoin was priced near its all-time high at $69,485. The next day, right after the announcement of the election winner, Bitcoin’s price rocketed to $75,440, an 8.5% increase in value in one day. This euphoric rise would continue over the course of the next couple of days, as only seven days later Bitcoin surpassed the $90,000 barrier, a giant milestone in the quest to reach $100,000 in value.
Even with its massive popularity, which has developed over the last couple of years, Bitcoin may still be relatively new to many individuals, as they may not know the primary purposes of cryptocurrency. So what is Bitcoin, and what are cryptocurrencies?
Bitcoin was introduced to the world in 2008 by Satoshi Nakamoto, as the first decentralized cryptocurrency to ever exist. Bitcoin is well-known as the leading cryptocurrency because of its popularity and status as the cryptocurrency with the largest market cap. A cryptocurrency, in essence, is a virtual currency that uses cryptography to make it almost impossible to make counterfeits of the money. The idea behind cryptocurrency is a provided method of online payments without the interference of a third-party. Although cryptocurrency is a revolutionary way to look at money and is likely to play a major role in the future of finance, there are some looming drawbacks to cryptocurrency at the moment. For Bitcoin in particular, cryptocurrency mining (the method to record transactions and circulate new cryptocurrency) requires extremely advanced supercomputers that use immense amounts of energy, as the mining process requires immense computational power.
Regardless of the pros and cons, cryptocurrency is here to stay. This is true in America especially now more than ever, due to Trump’s election win earlier this November. Trump is seen as a proponent for Bitcoin and other cryptocurrencies, as he wants less government regulation in the US economy. This notifies many Bitcoin investors that Trump will raise many of the regulations placed on cryptocurrency and allow for rapid growth in the industry. Furthermore, according to Forbes, many are speculating that Trump will appoint the first ever White House “crypto czar” and create a Bitcoin strategic reserve. The speculation that Trump’s presidency will bring good times for cryptocurrency is what’s driving the price of Bitcoin and other cryptocurrencies so high; they show no signs of slowing down.
Other speculations include the enacting of “The Bitcoin Act,” which would involve the US government buying 1 million bitcoins over the next five years to cut into the growing national debt problem. Finally, what appears to be the best news for cryptocurrency investors is Trump’s outright promises of cryptocurrency playing a large role in his presidency:
“I would like to wish our great Bitcoiners a Happy 16th Anniversary of Satoshi’s White Paper,” Trump said on his Twitter account. “We will end Kamala’s war on crypto, & Bitcoin will be MADE IN THE USA!”
