Bitcoin has skyrocketed!

On November 22, Jining News Network published a message online:

'Bitcoin has surpassed $98,000, up 3.5% in a day, just one step away from $100,000!'

In the global financial market, the value of Bitcoin has always been a hot topic of discussion.

In recent years, this digital currency has not only gained unprecedented popularity among investors, but its value has also skyrocketed.

According to the '2024 Cryptocurrency Wealth Report', the number of Bitcoin millionaires worldwide has increased by 111%, reaching 85,400.

Moreover, among the six new cryptocurrency billionaires created in the past year, five of them are centered around Bitcoin.

Nowadays, Bitcoin is still skyrocketing; what kind of power is hidden behind this surge?

1: Cryptocurrency policies and market reactions

After the results of the 2024 US presidential election are announced, every fluctuation in the market seems to be rhythmically manipulated by an invisible hand. Trump's election not only caused a stir in traditional finance but also triggered a frenzy in the cryptocurrency world.

During his campaign, he mentioned multiple times that 'cryptocurrency is the future' and promised to promote the United States as a leader in global blockchain technology after taking office.

On November 6, local time, Trump won the US election, and then Bitcoin soared from $69,353, breaking through $70,000 and $80,000 in succession, until November 22, when it exceeded $98,000, just one step away from $100,000.

With Bitcoin's skyrocketing price, according to reports from 'Sina Futures' on November 21, insiders revealed that Trump's team is discussing whether to establish a new position in the White House specifically for cryptocurrency policy.

If established, this will be the first position in the history of the White House specifically targeting cryptocurrency and will highlight the influence this emerging industry will have in the new government. Many see this news not just as a simple policy adjustment but rather as a 'booster' tailored for the cryptocurrency market. A blogger named 'Big Cat Finance Pro' analyzed that Trump's support for Bitcoin is a top-level scheme.

He proposed to relax cryptocurrency regulation, making the United States a 'Bitcoin superpower', and even stated that he would fire the SEC chairman who strictly controls cryptocurrencies.

Behind this series of operations is an actual understanding reached with capital giants to maintain the financial dominance of the United States through Bitcoin.

American capital deeply controls Bitcoin pricing power; by driving up Bitcoin's price, it not only stabilizes international trust in the dollar but also equates to 'discovering' a digital gold mine.

At the same time, the Trump family and related capital giants have also made major moves into the cryptocurrency field, further binding interests. Ultimately, this scheme not only reinforced the dollar system but also made the world pay for America's financial strategy, showcasing sophisticated capital manipulation techniques.

So what is this Bitcoin that Trump supports, and why can it surge so wildly?

2: The rise of Bitcoin

Bitcoin was launched on January 4, 2009, on a small server in Helsinki, Finland, by a mysterious person known as 'Satoshi Nakamoto'.

Accompanied by a flash of characters on the screen, the first block was generated, with a reward of 50 Bitcoins.

At this moment, the world's first blockchain network officially began operating.

Strangely, this data block known as the 'genesis block' contains no transaction records, only a sentence: 'The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.' Translated, it reads: January 3, 2009, UK (The Times) headline—'Chancellor on the brink of second bailout for banks.'

Many believe this statement reveals Satoshi Nakamoto's dissatisfaction with central banks' excessive issuance of currency after the 2008 financial crisis.

At first, not many people understood Bitcoin.

It is a distributed accounting system, which sounds very sophisticated; aside from a few cryptography enthusiasts, most people think it is just a program that no one would use.

Bitcoin also has no practical use, and the 50 Bitcoins generated are even less sought after.

However, by May 2010, a programmer named Laszlo posted a receipt online showing he exchanged 10,000 Bitcoins for two pizzas.

That day, Laszlo got his pizza as he wished, and those 10,000 Bitcoins became the first real transaction in history.

If converted, those 10,000 Bitcoins were worth only $30 at that time, with a unit price of $0.003.

Since that pizza transaction, Bitcoin gradually gained some fame, and more and more people began to try 'mining'.

The value of Bitcoin has also started to soar; on February 9, 2011, Bitcoin price first reached $1, equal to the price of the dollar, but in the following years, Bitcoin experienced prices of dozens, hundreds, and thousands of dollars, up to the current $98,000, enough to buy a house in a second-tier city in China.

It can be said that its price rises faster than a rocket.

This 'digital currency' has not only made some early investors overnight billionaires but has also attracted numerous businesses, institutions, and even countries to join.

For example, on June 18, 2021, El Salvador's legislative assembly passed the Bitcoin Law, which granted Bitcoin legal tender status within the country.

Why is Bitcoin so highly valued and still surging?

3: Bitcoin's technical advantages and investment value

In fact, apart from some policy advantages, Bitcoin's technical advantages are its foundation for standing firm in the capital market.

Decentralization, a term that sounds like something out of a science fiction novel, is the core charm of Bitcoin.

No banks, no intermediaries, all transactions are completed by a distributed ledger, with every flow of funds being transparent and secure.

At the same time, the scarcity of Bitcoin has made it the 'digital gold' pursued by the market.

The total supply of Bitcoin is capped at 21 million coins. This rule was set by Bitcoin's inventor 'Satoshi Nakamoto'.

This means that no matter how much time passes, the global quantity of Bitcoin is limited.

The generation of Bitcoin follows a fixed rule—every 10 minutes a new block is added, and the system rewards a certain amount of Bitcoin. Interestingly, this reward amount is halved every four years.

This mechanism is called the 'halving mechanism', which ensures that the speed of new Bitcoin generation gradually slows down.

By August 2021, approximately 18.7 million Bitcoins had been mined globally, with 2.3 million left to be mined.

Due to its limited supply and controllable generation speed, Bitcoin becomes as scarce as gold, avoiding the inflation issues that may arise from unlimited issuance.

This scarcity has also become one of the important supports for Bitcoin's value.

Especially under the backdrop of varying degrees of recession experienced by various economies worldwide in 2024, investors urgently need an asset that can counter economic fluctuations, and Bitcoin just fills that gap.

Moreover, as the market matures, Bitcoin is gradually accepted by more mainstream institutions.

Some top investment banks have begun to include Bitcoin in their asset allocation, even developing derivative products around Bitcoin.

This recognition further strengthens Bitcoin's investment attributes, transforming it from a speculative tool into an investment with long-term value.

However, technical advantages are not an all-powerful shield.

The price volatility of Bitcoin remains high.

Investors are constantly weighing the delicate balance between risk and reward.

Every time there is a drastic price fluctuation, it is like a taut string, and no one can say whether the forthcoming release of power will lead to a surge or a drop.#美PCE年率创半年来最大增幅