The price of bitcoin reached $100,000 for the first time, driven by a surge in demand following the election of crypto-friendly candidates, including President-elect Donald Trump. Bitcoin’s value has more than doubled year-to-date, hitting this milestone 15 years after its inception by the mysterious Satoshi Nakamoto. Despite the rise in popularity, cryptocurrencies have faced scrutiny due to their association with cybercrimes and scams, leading regulators to take a cautious approach. However, with the possibility of a more pro-crypto stance in Washington, advocates hope for less restrictive regulations and increased investment opportunities.
Trump, who was once skeptical of crypto, now supports the idea of creating a U.S. bitcoin “strategic reserve.” The recent growth in bitcoin’s value has been fueled in part by the introduction of ETFs tracking its price, with BlackRock’s iShares Bitcoin Trust ETF becoming the largest. Jay Jacobs of BlackRock believes that mainstream interest in bitcoin as a hedge against geopolitical risks is growing, especially in the face of potential currency devaluations caused by inflation.
While bitcoin’s price remains volatile, experts predict continued growth and increased adoption as more investors, including traditional financial institutions, show interest. As the cryptocurrency market evolves and more people become educated about its potential benefits, the path to mainstream acceptance and widespread use of bitcoin appears to be on the horizon.
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