The mighty river flows eastward, and the celebrities have all been swept away. But Bitcoin still stands tall! The $100,000 Bitcoin milestone has the crypto world in awe, fulfilling the promise made to the Almighty.
From being worthless initially, to exchanging 10,000 Bitcoins for two pizzas in 2010; to early adopters cheering as Bitcoin broke $10 in 2011; to the global frenzy when it first crossed $10,000 in 2017, and now the approval of a Bitcoin spot ETF in 2024 and its listing on the US stock market... This "internet bubble" that was once scoffed at has now become the "digital gold" that financial giants like BlackRock and Fidelity are eagerly chasing.Each transformation of Bitcoin has been awe-inspiring, redefining people's perceptions of currency, value, and wealth.
This latest Bitcoin rally to $100,000 can be attributed to three "heroes", who, though acting in their own interests, are still better than those who coldly watched from the sidelines.
From $16,000 to $30,000, we must thank Grayscale, who have steadfastly absorbed Bitcoin like a Qilin, and achieved a crucial victory in their lawsuit against the SEC.
From $30,000 to $60,000, we must thank the ETFs, especially BlackRock and Fidelity, as these traditional institutions brought their users and the hot money from the US stock market into Bitcoin.
From $60,000 to $100,000, we must thank MicroStrategy. Key resistance levels are often difficult to break, especially with the invisible pressure of various technical indicators. But MicroStrategy's faith and determination, using cash raised from debt and stock sales, directly and forcefully cleared the way, pushing Bitcoin into uncharted territory.
Why is it only Bitcoin that can repeatedly fall and rise, breaking through milestones and pressing on despite doubts and suppression?
The narrative appeal of Bitcoin lies in its simplicity - it requires no technical delivery and is unfalsifiable, like a perfect closed loop. Each crisis has only served to strengthen, rather than weaken, its value proposition.
In 2009, it was born from the ruins of the financial crisis, with a mission to combat inflation and the banking system;
During the 2020 pandemic, as countries engaged in unlimited quantitative easing, the narrative of Bitcoin's scarcity shone even brighter;
In 2022, the Russia-Ukraine war saw Bitcoin become a weapon in the invisible financial war, exemplifying the concept of a supranational currency and reaffirming the importance of decentralized assets;
In 2024, as the Fed cuts interest rates and geopolitical tensions escalate, Bitcoin has once again played the perfect role of a safe-haven asset.
From the early "digital gold" to the later "supranational asset" and now the "Web3 cornerstone",each narrative of Bitcoin has been reinforced in reality.
In the crypto world, we have seen many grand visions and complex technical solutions, but the one that has truly stood the test of time is the simplest - Bitcoin. It requires no marketing, no roadmap, and no promises of technical upgrades. Its value proposition is as simple and undeniable as the law of gravity: a decentralized, scarce, and immutable value network.
This is why it can only be Bitcoin. In a world filled with uncertainty, the most precious thing is certainty. And Bitcoin provides that certainty: a fixed supply, a predictable issuance schedule, and a reliable operating mechanism.
Is Bitcoin a competitor to gold?
Fed Chair Powell said that Bitcoin is not a competitor to the US dollar, but rather a competitor to gold. The scrawny underdog in the corner has finally stepped into the spotlight and the roar of the crowd, challenging the once-unattainable champion.
With a market cap of $20 trillion, Bitcoin is still dwarfed by the $180 trillion global gold market, but the gap is not an insurmountable one in terms of strength.
10 years ago (December 2014), gold was 250 RMB/gram, and 10 years later it is 630 RMB/gram, a 2.5-fold increase.
10 years ago (December 2014), Bitcoin was $360/coin, and 10 years later it is $100,000/coin, a 277-fold increase.
Bitcoin still has a long way to go to catch up to gold's $150 trillion market cap, but for many in the crypto world, this may not be an overly difficult task given Bitcoin's 277-fold growth in 10 years. We have already seen the boss's health bar, and it's just a matter of time.
Most of the time, gold in many people's portfolios is actually a hedge against inflation, serving as a safe-haven asset. However, the fact is that gold has largely failed to outpace inflation. But Bitcoin, with its relentless new highs, fixed supply cap, and 4-year halving, has never let anyone down in this regard.
Due to the general consensus, gold has very low volatility, while Bitcoin is the opposite. Thus, while Bitcoin has higher growth potential, it also carries higher risk. But Bitcoin's volatility is gradually decreasing, and it is truly becoming a viable "safe-haven tool" for high-inflation countries.
Next, we need to watch for the "boost" from Trump. Whether it's announcing the establishment of a strategic Bitcoin reserve or nominating a crypto-friendly SEC chair, Trump's election seems poised to usher in the most favorable regulatory environment in the history of the crypto industry, thereby opening the door for Bitcoin's recent upward trend. But from a medium to long-term perspective, the real driving force behind the crypto industry's continued progress is not Bitcoin's price, but whether Trump can turn those verbal crypto commitments into reality, providing more space for the crypto market at the legislative level.
With the right timing, location, and people, Bitcoin is swinging its fists to break through the mundane and the pressure, roaring a challenge to the traditional financial establishment's dominance. It has grown stronger and more respectable.
