One year after the 2008 global crisis, a certain one Satoshi Nakamoto created bitcoin, whose identity was recently explored in an HBO documentary, to help people become financially independent from banks. In the global crisis at that time, many people burned themselves, banks went bankrupt one after another, and the lives of millions of people were ruined.
Obviously, BTC is a utopia, at least at the moment, which cannot change the financial mechanisms that have been used for centuries, but we are still witnessing an exciting experiment.
At the beginning, almost no one understood the essence of BTC, but those who bought it as a joke or for any reason can now be quite rich, if only they did not buy a pizza in 2021 for 10 thousand bitcoins, as Laszlo Hanyecz did. In the previous bull run, digital gold reached an exchange rate peak of $68,000 at the end of 2021. Retail made a lot of money from it, small people traded with it, and BTC began to enjoy more and more popularity.
The financial world looked askance at bitcoin for a long time, the greens also complained that miners were wasting a lot of energy with their high-performance computers while mining. Today, however, an increasing number of miners operate their machines with electricity obtained from solar parks and wind farms.
The bitcoin ESG Forecast showed that in 2023, sustainable energy mining reached a new high of 54.5 percent, and sustainable mining grew by 3.6 percent last year.
The big ones are here
From the beginning, the SEC (The US Securities and Exchange Commission), i.e. the Securities and Exchange Commission of the United States, complied with BTC and crypto in general where it could: it did everything to discredit the sector. But it has had the opposite effect, because if something is to be banned, it will become popular, like the dark web.
However, a few institutional investors appeared in the world of digital gold, at first they bought bitcoin on the sly, you mustn’t, you mustn’t – they repeated, then looked away and made a sack of it. They knew very well years ago that it was indestructible and it was better to run with it than to be run over by the BTC magnet train.
Gluttony became contagious, because in the past period, institutional investors have already publicly thrown themselves at BTC. Let us mention here BlackRockotwhich also had a strong incentive to create bitcoin ETFs. This led purchases to a fairly regulated framework, which reassured small and large investors. Head of BlackRock, Larry Fink got behind the crypto that made BTC even more popular.
Trump and Bukele
In fact, Donald Trump also campaigned that the USA would become the Eldorado of crypto if he won the presidential election. He won it. With street length. BTC has skyrocketed. But it’s worth noting that even without him, BTC has been in a bullish mood for a year or so now. It’s hard to judge, but even if Trump had lost, there would likely have been only a temporary correction in the price of bitcoin and the bull run would have continued.
Trump thinks that even the American state will buy BTC, and this is where Salvadoran President Bukele comes into the picture, who already envisioned the construction of Bitcoin City in 2021, while cryptocurrency became legal tender in the country. Everyone thought it was plain stupid, especially the economic conservative gurus. Probably no one laughs at him today.
What makes a fly die, i.e. what is it good for?
Of course, what is its value? After all, a Tesla share prices the product of the company behind it, in the same way an OTP share evaluates the bank’s performance and vision, and we could go on and on.
Bitcoin’s finitude is its valueas we know very well that eventually there will be 21 million BTC in the world, while money can be printed indefinitely. Then the price of BTC may rise continuously over time, but it may prove to be at least stable even with multi-digit dips. Of course, we do not know where humanity is going, since any scenario is possible here.
This is definitely a long-term giga project. There may be corrections, major declines, but Bitcoin seems to be unstoppable. More and more states will buy, even in stocks, more and more institutional investors will appear and buy BTC. Moreover, it is a more stable solution to dollar exchange rate fluctuations than quite a few fiat currencies.
A little cryptic psychoanalysis at the end
Bitcoin has a special psychology, as people believe that they can own something, be the owner of something, without the interference of state bodies and economic mechanisms. We can talk about democracy here all day long, but it still has its weaknesses, which represent frustration either on an individual or societal level. In such cases, it is good to become independent from the state as an entity.
Bitcoin mining is a mechanism by which transactions are entered into the open ledger, which no one can change. Miners solve complex mathematical problems to create new blocks on the blockchain. Bitcoin does not have a central governing body that confirms transactions. In the case of BTC, this work is done by miners as they create new bitcoins.
Every four years there is a halving, that is, the bitcoin reward received for mining is halved, and that much less fresh BTC is put on the market. The already mentioned number of 21 million pieces will be issued over a period of 131 years from 2009 to 2140. As of this spring, more than 19 million bitcoins have been created, roughly 94 percent of the total supply. In other words, the amount to be issued has radically decreased, while retail is getting stronger.
Enthusiasm for BTC, along with money, can be called a kind of freedom struggle, young people have always been attracted to community-based equality. Obviously, BlackRock is doing the right thing, but it is swindling BTC. And, of course, the little man also wants to be rich, decentralized finance here or there. In other words, the needs of the little people, as the retail segment, meet the interests of the institutional investor.
Regardless, we cannot know what the future of BTC will be, but we did not come from the Delphic oracle to indulge in unnecessary predictions. Carpe diem, but supposedly BTC also represents the future. Nobody knows. Everyone decide for themselves!
Source: www.economx.hu
