Bitcoin is going crazy, only a step on the gas away from 100,000. It rose 83% in 2023, and in 2024, it directly doubled and rose 150%. The world's number one, now the total market value of Bitcoin is 1.88 trillion dollars. The trading volume in 24 hours is 76.3 billion dollars. The old way of thinking is limited and underestimates the craziness of this world.
Previously, when it was over 60,000, a buddy asked me if he could buy it on the spot, I thought it was too expensive and told him to wait. Now he probably hates me to death and has blacklisted me.
Bitcoin has no national credit backing it. Once it circulates, the value of fiat currency gets diluted, making it easy to cut leeks, leaving investors with nothing. That's why there are 51 countries that directly prohibit Bitcoin trading. The attitude of different U.S. states towards virtual currencies is also varied, especially the SEC, which has sued several large institutions.
However, after this U.S. election, virtual currencies seem to have made it through. Once Trump 2.0 takes office, he will fully support virtual currencies. The SEC does not support virtual currencies, and Trump plans to dismiss them as soon as he takes office. Trump has also become the first presidential candidate in history to accept donations in virtual currencies. Tied to the American financial vehicle, the path for virtual currencies is becoming wider.
In countries without freely convertible currencies, if virtual currencies are allowed to be freely exchanged and traded, it could lead to a loss of control over the local currency. Therefore, countries that prohibit Bitcoin trading are mostly developing countries. Why does the U.S. support virtual currencies? Because the dollar is already freely convertible; allowing the exchange of Bitcoin is still within the dollar system. To buy virtual currency, one must first buy dollars, which can attract more global capital into the dollar in the short term.
Trump may also want to use virtual currencies to repay national debt, letting all holders share the burden. The growth rate of U.S. debt is faster than the speed of issuing bonds, and it is highly likely that U.S. debt will exceed 50 trillion. By then, if they can't even pay the interest, the development of the U.S. economy will be difficult.
In a panic, with no other assets to buy, virtual currencies naturally become stronger. This is actually a group of people with huge private assets banding together to hedge against risks.
They do not believe in central bank currencies, nor do they have pricing power and commodity rights over precious metals like gold, so they can only band together in the virtual currency market, seeking to protect themselves in the next financial crisis or grow in this wave of virtual currencies.