Bitcoin’s Explosive Growth
Thaddius Gamueda
Staff Writer
The premier crypto currency, Bitcoin, has begun a new surge in the past weeks due to the election of the 47th president of the United States. As of November 13th, 2024, Bitcoin has reached all-time highs of $92,875.00 and is rising fast. As Donald Trump is set to regain his position in the oval office, this article will discuss how the new “Trump Economy” has jumpstarted the staggering growth of Bitcoin.
Understanding Cryptocurrency and Bitcoin
Bitcoin was the first cryptocurrency created and is also the most well-known. Cryptocurrency is a digital currency that is decentralized and only accessed on many computers using blockchain digital ledgers. This decentralized system allows for the currency to not be regulated by government control. To invest in cryptocurrencies, investors need to visit a cryptocurrency exchange because investors cannot purchase it through traditional banks. Although this investment sounds very fraudulent, the blockchain system is what allows for cryptocurrency and Bitcoin to be so secure. This system works on a long series of “blocks” that are filled with records of transactions. When the transactions are verified by consensus nodes in the network, mining, the block is added to the pre-existing chain of Bitcoin. In other words, to buy a Bitcoin, the buyer must be checked and accepted by every other purchaser of Bitcoin to be able to own their own. This system leads to a very secure and fraud protected network.
How does Donald Trump’s Re-election Effect Bitcoin?
During the election campaign, Donald Trump was eager to position himself as the pro-crypto candidate. Although Trump was very dismissive of crypto, stating, “that is was based on thin air”, he has converted into a crypto supporter. His new crypto company, World Liberty Financial, was created in September with the help of his children, and he has gone on record saying he believes in the future of cryptocurrency. Trump has a personal stake in Bitcoin and has many new policies in his new plan for office. The first policy is the creation of the U.S. strategic Bitcoin reserve. If this reserve is created, Bitcoin would be seen as a new premier currency on the same status as gold or the USD. As a result of this reserve’s creation, many companies like Vanguard who previously have not allowed for investors to invest in crypto ETFs could be strong armed into creating ETFs because of new calls from investors who are adamant to invest in cryptocurrencies. Another policy Trump has proposed is to create a U.S. Bitcoin mining industry. During his speech in Nashville, Trump stated, “If crypto is going to define the future, I want it to be mined, minted and made in the USA.” If the U.S. can sustainably have the largest network of Bitcoin miners, it would allow for the U.S. to have more control over the currency and boost Bitcoin’s price because of the backing by the U.S. government. The third change he stated was to fire the Securities and Exchange Commissioner Gary Gensler, who has previously been very antagonistic towards the crypto industry. If he does do this, the SEC will pivot to having a friendly stance towards crypto and many legal battles with companies like Coinbase will be dropped. \
What is the Outlook of Bitcoin, and Should you Invest?
Many analysts believe that this recent surge in Bitcoin is only the start. According to analyst Samir Kerbage, CIO of crypto asset manager Hashdex, Bitcoin is predicted to have a very strong 2025 because of Trump’s new election. Chief analyst at Bitget Research, Ryan Lee, believes that Bitcoin is on track to reach a $100,000 price tag in the next three months. Although there is optimism, investors should be cautious because of the high risk that is involved with cryptocurrency. Many of the changes that have led to the recent rise in Bitcoin have not been implemented yet. Donald Trump’s past presidency could not deliver on some of his past promises, including the border wall. But he did uphold his promises on overturning Roe V. Wade and getting new justices onto the Supreme Court. With the election of the senate and the house won by the republican party, Trump’s administration will have a much easier time with implementing their policies than compared to the first term. Overall, Bitcoin’s future is optimistic but unknown. In the short term, Bitcoin has been on a drastic rise, but much of the future growth going into 2025 is on the 47th president’s shoulders. If Donald Trump can deliver on his crypto promises during his campaign, then investors should rush to the chance to invest in Bitcoin. Investors should understand what their risk tolerance is and if they truly believe Bitcoin can become the premier currency of the future.