Author: Revc, Golden Finance

Today the price of Bitcoin climbed to around US$97,000, officially sounding the clarion call to hit US$100,000. This historic moment not only symbolizes the rise of the crypto economy, but also It poses profound challenges to the traditional financial system. The following article focuses on its historical evolution, driving factors, global impact, and Trump’s interaction with the encryption industry, and looks forward to the future of encryption.

1. From geek experiment to global financial asset: The rise of Bitcoin

Bitcoin was born in the context of the 2008 financial crisis. Satoshi Nakamoto left “*The Times” in the genesis block 03/Jan/2009 Chancellor on brink of second bailout for banks*”, expressing dissatisfaction with the traditional financial system. From the transaction of two pizzas in 2010 to the high of $69,000 in 2021, the development process of Bitcoin clearly shows the following stages:

Initial stage: The early geek circle and niche investors are Bitcoin provides a living space where its primary uses are limited to experimental currencies.

Mainstreaming is beginning to take shape: The price of Bitcoin exceeded US$10,000 in 2017, attracting wider market and media attention.

Institutionalization process: After 2020, the active participation of traditional financial institutions will significantly enhance the legitimacy and market status of Bitcoin.

Today, Bitcoin has grown from an experiment in decentralized currency to a global financial asset with a market value of over one trillion US dollars.

"The price of that pizza keeps rising"

2. The key to pushing Bitcoin to break through $100,000 Factors

(1) Economic and geopolitical environment

Anti-inflation safe haven: The Federal Reserve’s long-term quantitative easing has brought about flooding of global liquidity, and Bitcoin has become an ideal tool to deal with inflation due to its fixed supply.

The wave of de-dollarization: The international community is seeking to get rid of the dominance of the US dollar in the context of intensified geopolitical conflicts, and Bitcoin has become a potential option as an alternative settlement tool.

(2) Technology upgrade and ecological improvement

Technological innovation: Upgrades such as Lightning Network and Taproot have greatly improved transaction efficiency, privacy and scalability, and enhanced their practical payment scenarios. feasibility.

Mature ecosystem: The gradual improvement of infrastructure has significantly lowered the user threshold and promoted the transformation of Bitcoin from investment assets to financial instruments.

(3) Institutional investment and mainstreaming

ETF drives capital inflows: The approval of spot Bitcoin ETFs provides compliance channels for traditional investors and attracts a large amount of capital to be injected into the market.

Accelerating corporate acceptance: The support of companies such as Tesla and PayPal has further expanded the payment scenarios of Bitcoin, making it graduallyfurther integrate into mainstream economic activities.

3. The influence of the Federal Reserve and Trump

(1) The double-edged sword of currency

Promotion of easing: Quantitative easing increases market liquidity and promotes the development of innovative assets. At the same time It has also brought about asset bubbles and the gap between rich and poor.

Tightening adjustment: Tightening measures may suppress the Bitcoin market in the short term, but they will also help stabilize the economic environment in the long term.

(2) Trump’s potential encryption

Changes in the regulatory environment: Trump plans to change the leadership of the SEC and may nominate candidates who support crypto assets to create a friendlier market environment.

Reserve Proposal: If the United States establishes a strategic Bitcoin reserve, it will significantly enhance its status as a financial asset.

Consultation mechanism: Establish the "Bitcoin and Cryptocurrency Presidential Advisory Committee" to promote the development of the industry at all levels.

(3) Corporate and personal influence

Support from Elon Musk: Musk’s continued promotion may accelerate the popularity of Bitcoin in the payment and consumption fields.

Coinbase’s push: Through aggressive lobbying, the crypto industry is winning more mainstream support.

4. The economic and financial significance of Bitcoin

(1) Reshaping the global financial market

Innovation in asset allocation methods: Institutional investors include Bitcoin in their asset portfolios, together with gold and real estate juxtaposed.

Liquidity and market diversification: As the Bitcoin market matures, global liquidity has increased significantly, providing investors with more risk diversification options.

Technology diffusion effect: Promote the application of blockchain technology in DeFi, Web3 and payment network transformation.

(2) Implications for the economy

New options for reserve assets: Emerging economies with high inflation and foreign exchange shortages may follow El Salvador and include Bitcoin reserve.

Cross-border payment revolution: As a low-cost and efficient payment tool, Bitcoin has unique advantages in international trade and personal remittances.

5. The future path of Bitcoin

(1) Technology and market prospects

Value potential: Scarcity and institutional demand may push Bitcoin prices to rise further.

Sustainability and privacy optimization: Optimizing energy consumption, improving privacy and anti-quantum computing capabilities will be the top priority for future technology development.

(2) Regulation and geopolitical risks

The two sides of compliance: Reasonable regulation can promote market confidence, but excessive intervention may inhibit innovation and push activities to the gray market.

International competition: Differences between countries will trigger competition in the field of blockchain technology and promote global cooperation.

Summary

When Bitcoin hits $100,000, it marks that the global economy and financial system are undergoing profound changes. Driven by technology, and market forces, Bitcoin is expected to become an important part of the future financial ecosystem., and continue to lead the wave of decentralization revolution.