On November 5th, during the U.S. presidential election, the price of Bitcoin was around $68,000. As Trump gained momentum, the price of Bitcoin continued to rise, reaching nearly $75,000 in the early hours of November 6th. Subsequently, Bitcoin kept climbing and reached a historical high of close to $99,000. What exactly is Bitcoin? Is it a currency? Will Bitcoin continue to rise in the future?
Television producer Li Jun mentioned in the NTD Elite Forum program that around November 23rd, the price of Bitcoin reached a peak of almost $99,660, coming close to $100,000, and is currently experiencing a minor pullback to around $93,000. During this sharp surge, around 220,000 people were liquidated within a 24-hour period, indicating that many investors did not expect such a strong rally, and some even held a bearish view and suffered losses.
The surge in Bitcoin prices has been closely related to Trump’s election victory, as his recent statements have been supportive of Bitcoin. In August this year, Bitcoin briefly dropped to $50,000, but as the likelihood of Trump’s victory grew in October, Bitcoin has been on a steady rise. Following Trump’s election, a significant amount of funds entered the Bitcoin market. In the 12 trading days after November 5th, the cumulative net inflow for 12 spot Bitcoin exchange-traded funds, including BlackRock and Fidelity, reached $6.848 billion. Consequently, many institutions and individual investors are now showing more interest in Bitcoin.
Li Jun mentioned that with Trump about to take office, breaking the $100,000 mark for Bitcoin seems highly probable. His team is discussing with the digital asset industry whether to establish a new position in the White House dedicated to cryptocurrency policy. There are also reports that Trump’s social media company is in negotiations to acquire a cryptocurrency exchange.
Professor Xie Tian from the Eiken Business School at the University of South Carolina stated in the Elite Forum that the last time Bitcoin’s price saw a significant surge was due to Elon Musk. About two to three years ago, he made a substantial purchase of Bitcoin, driving the price over $70,000, which is now approaching $100,000 again.
In actuality, Trump does not oppose Bitcoin; his opposition is towards central bank digital currencies (CBDC). The current Biden administration, whether it’s the Treasury Department or the Federal Reserve, is considering the introduction of CBDC, digital currencies issued by central banks.
It is known that Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), strongly opposes Bitcoin, whereas Trump’s previous opposition was towards virtual currencies or central bank digital currencies. From a conservative perspective, Trump opposes central banks issuing currencies. However, he neither opposes Bitcoin itself nor actively supports it.
Furthermore, Trump also believes that Bitcoin has evolved into a financial asset and a form of currency due to its substantial technological advancements, including blockchain technology and other internet-based virtual currency technologies, which have attracted significant funds. Trump does not want China, Russia, or other countries to control Bitcoin; he aims for the U.S. to maintain a leading position in technology and fund absorption within the virtual currency realm.
Therefore, earlier this year at the Nashville Bitcoin World Conference, Trump stated that once in office, he would dismiss SEC head Gary Gensler and support Bitcoin.
In regards to the design of Bitcoin, it utilizes blockchain technology to circulate securely without government oversight. The crucial point is that it bypasses central banks. Initially, when the People’s Bank of China did not know how to handle Bitcoin, mining equipment was initially located in China. However, due to excessive power consumption and suspicions, those involved were expelled, and the mining equipment moved to the U.S.
When it comes to the future of Bitcoin, Xie Tian believes that Bitcoin will continue to rise significantly, surpassing $100,000. However, it will inevitably collapse one day due to the inability to democratize the currency-issuing authority to any institution. If everyone can issue currency, chaos will ensue.
Lastly, there’s speculation that a giant mysterious organization closely tied to a certain government is the real Satoshi Nakamoto or has control over Bitcoin. This secrecy could potentially be revealed one day, leading to Bitcoin’s collapse. The bit…