Bitcoin has seen its share of roller coaster rides, going up and down basically since its anonymous inception in 2009. It has seen massive crashes in 2018 and again in 2022 amid various market circumstances. But it has been on the rise the las year and a half and has even hit new highs as of a few days ago.
The price of the cryptocurrency surpassed the $100,000 mark for the first time ever this week, peaking around $103,000. As of the time of this article, it has dipped back to $97,000, but it is still sitting at heights it has not seen, breaking barriers no one really thought it could.
Federal Reserve Chair Jerome Powell has said before that Bitcoin is not a threat to the US Dollar but may give gold a run for its money. The recent surge certainly opens up the argument. So, the question has to be asked: will Bitcoin ever become widely used?
Money and Business Expert Derrick Kinney says this recent surge has been because of the Donald Trump election win, giving hope for a new era of deregulation.
"We have seen crypto has a place, and have seen wider adoption institutionally with companies," he says. "We will also probably see a wider acceptance of other financial options...and much less regulation, which tends to be good for the stock market."
The Biden Administration has been placing staunch regulations on all types of businesses, including on Cryptocurrency. Bitcoin is no stranger to that, having had regulations slapped on them starting in 2012.
Trump has made it a platform of his to begin reversing the strict regulations when he arrives in office, which again, is bringing hope, especially back to heavily regulated businesses. But, while Trump may be good for the crypto game, there is a slight hitch in the giddy up.
"What Trump has done for crypto...will this have the same positive effect when tariffs kick in on various products," he says. "Some analysts are nervous of the impacts...while people may make gain in crypto, they may then lose it paying for products."
As mentioned, Fed Chair Powell has said that Bitcoin may be like the new gold. People tend to stock up on metals during hard times in the economy, as a 'rainy day fund' of sorts.
But gold you can hold in your hand and physically see it. Bitcoin is just online encrypted currency, with no physical presence. However, that is what makes it even more appealing.
"Crypto you cannot feel or touch it, but it is not part of the US Dollar system," he says.
The recent surge may have you thinking about investing money into the crypto game. But Kinney adds that you should only spend money you can afford to lose. Because as we know all too well with Bitcoin, it could plummet, and you could lose it.
Bitcoin has risen 42 percent since Election night alone, and over 133 percent in 2024.
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