Bitcoin; From ridicule to mainstream

reportedMehr News Agency, the value of Bitcoin, the world’s most popular cryptocurrency, recently exceeded $100,000 and reached $107,000. This sudden jump has been mainly influenced by the new stance of US President-elect Donald Trump in support of cryptocurrencies.

Trump has backed bitcoin, plans to create a strategic bitcoin reserve, and has appointed cryptocurrency advocates to key positions. This digital currency has gained legitimacy today, and governments like El Salvador have large reserves of Bitcoin, and the US Treasury Department calls Bitcoin digital gold. Despite the volatility, Bitcoin is now receiving serious attention from governments, financial institutions and investors around the world.

Bitcoin’s value today far surpasses assets like stocks and real estate. Bitcoin, the first decentralized digital currency, was created by a person nicknamed “Satoshi Nakamoto“. The global financial crisis of 2007 to 2008 was invented.

Nakamoto introduced the blockchain system to the world, a digital ledger that stores transactions on a network of computers. to enable anyone to make financial transactions without the intervention of banks, financial companies or the government.

Bitcoin, once derided as a speculative asset with no intrinsic value, is now increasingly being taken seriously by governments, financial institutions and investors.

According to fintech analyst Boaz Sobrado Based in London, Bitcoin has gone from being a special asset favored by political dissidents and criminals who conducted illegal transactions to something that central banks must consider and consider.

The International Monetary Fund has established very strong anti-crypto policy guidelines when negotiating with countries that may need the Fund’s assistance.

According to Subrado, Bitcoin has turned from an academic question to a practical and real one, and now its central banks are taken very seriously.

increasing legitimacy

Bitcoin, which was initially favored by political opponents and criminals, has now attracted the attention of central banks and governments. In January, the Securities and Exchange Commission approved Bitcoin ETFs and allowed them to be listed.

The US Treasury Department referred to Bitcoin as “digital gold”. El Salvador has $600 million in Bitcoin and accepts it as legal tender, and other countries such as the United States and the United Kingdom acquire it through asset forfeiture. America currently has significant amounts of Bitcoin worth 21 billion dollars.

Bitcoin will also gain more legitimacy with Trump backing the asset and appointing cryptocurrency advocates in his administration. “Cynthia Loomis” US Senator Bitcoin Act 2024 to use Bitcoin as an asset Reserve introduced to protect against inflation. Wall Street’s view on Bitcoin has changed, and CEO “Black Rock” is now calling it A protective asset like gold.

Resistance currency

According to Max Kaiser, consultant Chief Bitcoin President of El Salvador The revolutionary feature of Bitcoin is its separation from government control, which makes it unique and powerful. Bitcoin’s value has risen, fueled by economic instability in places like Argentina, which is struggling with hyperinflation. The supply of this cryptocurrency is limited to 21 million, which will lead to a significant increase in its value in the coming years.

Bitcoin’s value is dependent on its blockchain technology, and experts predict that the value of this cryptocurrency will continue to increase and has the ability to reach $1 million per coin. In the Bitcoin blockchain, there is a certain amount of Bitcoin that is supplied every 10 minutes and this supply is halved every four years. In other words, over time, fewer and fewer bitcoins are produced. Once the limit is reached, no more bitcoins can be created. That is why its value will continue to increase.

However, Bitcoin is volatile and some analysts consider its value to be a bubble. Despite support from figures such as Trump, some governments, including El Salvador, have been cautiously supporting cryptocurrencies due to the risks and concerns of the International Monetary Fund. El Salvador announced this week that it has privatized its cryptocurrency wallet Chivo as part of a $1.4 billion loan agreement with the International Monetary Fund. closes.

Digital currencies of central banks

Some supporters of crypto believe that governments and central banks with their own special digital currencies called CBDC will be directed towards the use of digital currencies. “Gerald Selent” from the research institute “Trends” predicts that the United States may have a currency Digital to help pay its 36 trillion dollar debt.

As ​​central banks increasingly discuss CBDCs, concerns have arisen about potential government control and oversight of the financial affairs of these cryptocurrencies.

Meanwhile, stable coins (stable Coins are a type of digital currency whose value is tied to another asset such as gold to keep its price stable.) Like Tether tied to traditional commodities, Significant market value at hand have brought Experts have predicted a digital future for money and expect CBDCs to be established in countries such as the United States, the United Arab Emirates, and Switzerland.