New Delhi: Bitcoin, the original cyrptocurrency which has spawned a barrage of dcentgralsied digital coins in its wake has witnessed immense volatility this year. The digital currency hit an all-time high of $71,00 earlier this year before nearly $100 billion worth of the asset was wiped out in the matter of a month. This was followed by a general optimism among crypto traders as US President elect Donald Trump who was on the campaign trail at the time proclaimed that he will be the US’ first ‘çrypto President’.
The bitcoin was valued at $94,880.87 apiece at the time of writing on Friday, December 20, 2024. The flagship cryptocurrency was down 2.80 per cent on December 20, 2024, and 9.02 per cent in the past 5 days. However, over the past month, the crypto coin has risen 2.89 per cent. It has jumped 45.59 per cent in the past months and 117.31 per cent in the past year. Bitcoin has risen both in anticipation of Donald Trump’s election to the US office and in the aftermath of his victory.
Bitcoin crosses $100,000 mark
The bitcoin breached the $100,000 mark after Trump indicated the appointment of crypto backer Paul Atkins as the next US SEC chief as the incumbent Gary Gensler is set to resign before the next president takes office. While bitcoin enthusiasts have cheered on the rise of the cryptocurrency, skeptic, including Value Research CEO Dhirendra Kumar remained skeptical of the commodity.
“Bitcoin produces nothing, earns nothing, and serves no practical purpose that existing financial systems cannot serve better,” said Kumar. Calling it the very definition of a bubble, Kumar stated in an article that cryptocurrency rises only based on speculative buying.
Trump to the rescue
US President-elect Donald Trump during a bitcoin conference in July campaigned to form a new council which will make his administration crypto-friendly. Now key crypto firms including Ripple, Kraken, Circle and a16z are eyeing a seat in the council, Reuters reported. The crypto council is likely to be housed under the White National Economic Council, Reuters reported, citing two people familiar with the matter.
Once constituted, the council is likely to have a far-reaching impact on cryptocurrencies, from a bitcoin reserve to formulating regulations for digital currencies. The council is also likely to be a go between for the US SEC, the US Treasury and the Commodity Futures Trading Commission.
Crypto’s brush with dark side of the law
Cryptocurrencies continue to be a vehicle for alleged criminal activities and rogue states. North Korea stole money worth $1.3 billion in 2024 through cryptocurrency hacks, the Financial Times reported. These funds are likely to have been used to fund North Korea’s illicit nuclear weapon programme, according to the report.
Russia legalised cryptocurrency-dominated payments in July this year in an effort to bypass Western sanctions in the aftermath of the Russia-Ukraine War. This has set the tone for a Cold War of Bitcoin between the US and Russia along with China and Japan, Forbes magazine reported.
In an article for Forbes, investor Tomer Niv simulated data to show how countries’ treasuries may look if they scaled up crypto buying to gold levels. National bitcoin reserves are likely to usher in a new era of financial changes which are likely to have reverberating effects on geopolitics and technical innovation, he said.
Bitcoin came into existence in 2009 as a digital currency mined by the mythical figure Satoshi Nakamoto. It would go on to be used for buying pizza before becoming a global rage over the years. However, 2024 has proven to be a marquee year for the cryptocurrency as it emerged from the ashes of the FTX crisis last year to be mentioned a s potential national reserve by the heads of state in the US and Russia. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
