Bitcoin surpasses $100,000, and this may just be the beginning.
On December 5, 2024, at 10 AM, Bitcoin officially surpassed $100,000.
Over the past year, BTC has more than doubled; over the past three years, BTC has increased nearly sixfold; over the past five years, BTC has risen nearly twentyfold; over the past ten years, BTC has surged by 500 times; and over the past fifteen years, starting from the Bitcoin Pizza Day, BTC has skyrocketed 40 million times... For sixteen years, Bitcoin has always been at a new starting point.
Over the past sixteen years, Bitcoin has been repeatedly attacked by governments of various countries and then gradually accepted or even publicly supported by these governments, questioned by the populace only to be held by more and more people. By 2024, the number of users on the cryptocurrency exchange Binance alone exceeded 210 million. Each time people thought Bitcoin had reached its peak and was nearing its end, it was proven to be just a new starting point.
The narrative and significance of Bitcoin itself are also constantly evolving, and people's views on Bitcoin have been changing.
Fifteen years ago, it was just a small experiment by cryptographers, when a programmer from Florida used 10,000 Bitcoins to buy two pizzas; ten years ago, it was merely a payment method for illegal transactions such as gambling, drugs, and money laundering, with most of its use cases being illegal; five years ago, it gradually grew into a new financial system alongside the cryptocurrency industry, inadequately described by imprecise terms, featuring 'crypto Nasdaq' (Ethereum), 'crypto banks' (Tether, Ethena), 'crypto brokerage firms' (Binance), and account systems (Metamask)... Each product has tens of millions or even hundreds of millions of users, almost all the infrastructure and products of the traditional financial industry exist, and they are more efficient, streamlined, transparent, decentralized, and globalized; three years ago, the cryptocurrency industry expanded beyond financial scenarios to Web3 applications, thus making the next-generation financial system + next-generation internet system its new mission.
Today, more people believe that Bitcoin is gold. Bitcoin's market value has reached $2 trillion, surpassing that of silver and accounting for one-tenth of gold's market value. Bitcoin is recognized and supported by several sovereign nations, including the US and Japan. Remarkably, this process took Bitcoin only sixteen years. Even more astonishing is that the blockchain technology behind Bitcoin has given rise to an entirely new financial and internet ecosystem, with thousands or even tens of thousands of cryptocurrency institutions within these two ecosystems continuing to promote the widespread adoption of Bitcoin, making it truly possible for Bitcoin to become a global currency.
When Bitcoin reaches the peak of $100,000, everyone poses a common question: Is Bitcoin nearing its end? How far is Bitcoin from its endpoint? Will there be new narratives for Bitcoin?
5 billion internet users have yet to come into contact with Bitcoin.
$100,000 is still the starting point for Bitcoin, and this time Bitcoin will welcome new 'buyers.'
The biggest new buyer this year is undoubtedly the world's largest fund, BlackRock, along with the main buyers behind BlackRock and similar funds—American corporations and institutions.
In January 2024, the US passed the BTC ETF, which means that publicly traded companies, pension funds, BlackRock, Stanford, and other university funds can publicly purchase and hold Bitcoin through ETFs issued by funds like BlackRock. The approval of the US Bitcoin ETF sparked a wave of large institutions in the US buying Bitcoin, with global large companies rushing in to purchase Bitcoin. In just ten months, the BTC ETF attracted $100 billion, with almost $10 billion flowing in every month through American fund companies.
Bitcoin has soared from over $40,000 to $100,000, largely due to the approval of the US BTC ETF, allowing American institutions to purchase Bitcoin through this legal channel. The approval of the US BTC ETF and its subsequent data performance over the next ten months have become a miracle in ETF history.
If Bitcoin rises from $100,000 to $200,000, what new buyers will emerge?
First of all, from an institutional perspective, the institutions currently buying Bitcoin are still primarily based in the US. The US Bitcoin spot ETF is rapidly attracting billions of dollars in funds every month, with no signs of stopping. Companies and institutions in the US and globally will continue to buy Bitcoin through the Bitcoin spot ETF.
From a global perspective, major economies such as Japan, Europe, and China have not fully lifted restrictions on institutional purchases. Once major economies lift restrictions, it will be another leap. According to the famous 'Time Machine Theory,' innovative assets and mechanisms often transmit from the US to developed countries, and finally to developing countries. Whether in the asset and financial fields: gold, Nasdaq listing mechanisms, SPAC listing mechanisms, or in the tech realm: internet, chips, mobile phones, and new energy vehicles, they often follow the Time Machine Theory.
Secondly, from the perspective of ordinary people, the adoption rate of Bitcoin is still far from sufficient. According to estimates by the well-known Silicon Valley investment firm a16z, there are currently approximately 30 to 60 million active cryptocurrency users worldwide each month. Even if the scope is expanded to include users who have ever held cryptocurrencies, according to Crypto.com's analysis in April 2024, there are 610 million cryptocurrency users globally. The global population is 8.2 billion, of which 5.4 billion use the internet, and about 5 billion internet users have not experienced cryptocurrency products.
The cryptocurrency industry aims to create a new global financial system and internet system, allowing everyone to use cryptocurrency products just like internet products. In 2024, 5.4 billion people use the internet, but there are only 610 million cryptocurrency users, indicating a huge growth market. The cryptocurrency industry is changing this situation; it is transforming the financial and internet systems.
When the cryptocurrency industry becomes as ubiquitous as the current internet industry, Bitcoin will reach ten times its current user base.
Finally, there is one more key buyer: sovereign nations.
After El Salvador, Bitcoin is expected to become a reserve asset for an increasing number of sovereign countries. Especially after Trump's election as President of the United States, major economies such as the US, China, Japan, Europe, and the UAE are expected to accelerate the adoption of Bitcoin as a national reserve asset, which will bring Bitcoin to a leap forward again.
Major countries personally entering the market to buy Bitcoin is not just a rumor. On November 22, Reuters reported that Trump's 'Cryptocurrency Advisory Committee' is expected to establish a committed Bitcoin reserve.
Trump has repeatedly publicly supported Bitcoin and the cryptocurrency industry. During his campaign, Trump promised several measures to support cryptocurrencies, such as incorporating Bitcoin into national reserves, making the US the world's cryptocurrency capital, and relaxing regulations. Trump's proposals have received support from some political and industry experts; for example, US Senator Cynthia Lummis has proposed a bill to establish a Bitcoin strategic reserve, aiming to acquire 1 million BTC within five years and hold them for at least 20 years to hedge against US national debt.
When the US treats Bitcoin as a reserve, most countries around the world are also expected to allocate a corresponding proportion of Bitcoin assets, just like gold.
In summary, whether it is the 5 billion internet users, the Bitcoin spot ETF that continues to attract $10 billion monthly primarily purchased by institutions, or sovereign state funds, all will be potential buyers of Bitcoin and key 'buyers' for Bitcoin's rise from $100,000 to $200,000.
$100,000 is just the beginning.
$100,000 is just the starting point for Bitcoin. If Bitcoin wants to rise from $100,000 to $200,000, it not only needs new buyers but also a new batch of believers and builders to expand Bitcoin's reach.
Cryptocurrency practitioners may be one of the most exploratory groups in this world.
They not only need to understand the development of various blockchain technologies like ZK but also need to grasp the new technological trends in industries like AI, VR, and the Metaverse; they need to have an in-depth understanding of US politics and elections, the timing and extent of Federal Reserve interest rate cuts, and the cryptocurrency policies of Hong Kong and Singapore, while also keeping an eye on various macro events such as wars, economic crises, and stock market fluctuations; they need to understand the differences between public chains like Bitcoin, Ethereum, Solana, Sui, and Base, as well as be well-versed in concepts and sectors like Web3 social, Web3 gaming, DeFi, and NFTs.
From ICOs to DeFi, from NFTs to today's Mass Adoption, cryptocurrency practitioners are constantly expanding the boundaries of blockchain networks, allowing Bitcoin and other cryptocurrency assets to circulate globally and generate value.
Many people ask, what is the significance of Bitcoin and cryptocurrencies? Why are so many people joining the cryptocurrency industry?
I often reply that when the value of Argentina's national currency shrinks by more than 50% each year, companies like Binance and Tether provide stablecoins for Argentinians, protecting their assets from significant depreciation, which is the significance of Bitcoin's existence; when people want to transfer money to family and friends across borders, but traditional economic and political systems set layers of obstacles, requiring high fees and long waiting times, that’s the significance of Bitcoin's existence; when, as an entrepreneur of a startup, it is difficult to collaborate directly and cost-effectively with employees from several or even dozens of countries with different currencies and systems, that’s the significance of Bitcoin, cryptocurrency, and blockchain.
Bitcoin creates value and continues to explore new possibilities for value creation. From building a new financial system to constructing a new internet system, this path has only completed a small portion, and new builders still have a long way to go.
Written at the end.
During the Republican era, the first thing a university professor did upon receiving his salary was rush to the rice shop to buy rice, because prices would rise again in just an hour.
Such things are happening all the time, across generations, in every corner of the world. Some countries show mild symptoms, such as China, Japan, and the United States, while others, like Argentina, are more severely affected, and some, like Russia and Ukraine, may experience worsening conditions at any moment.
Everyone has a good side and a bad side. The existence of the state has both good and bad aspects.
The advent of the internet has made it impossible for most countries to block information at will, countering the malicious actions of the state; the emergence of Bitcoin has made it impossible for most countries to print money indiscriminately, countering the malicious actions of the state.
And the state cannot stop Bitcoin because Bitcoin is just a technology, a tool. As Russian President Putin said at the Russia Calling forum on December 4: 'Who can ban Bitcoin? No one can. Who can ban the use of other electronic payment methods? No one can. Because these are all new technologies.'
This is why Bitcoin can reach $100,000 each.
This is also why it is said that $100,000 is still just the starting point for Bitcoin.