Bitcoin Reaches $100,000 Is Making It Enter Unchartered Territory With Known Consequences

In an unprecedented milestone, Bitcoin has soared past the $100,000 mark for the first time.

This landmark achievement comes amidst a surge in demand following the recent election of U.S. President Donald Trump, who has been a vocal advocate for cryptocurrencies. It's also largely attributed to his decision to nominate Paul Atkins, a known cryptocurrency proponent, to head the Securities and Exchange Commission (SEC).

Trump's administration has promised a more lenient regulatory approach towards cryptocurrencies, which has injected optimism into the market.

Atkins, with his history of advocating for less stringent regulations, is expected to steer the SEC towards a more crypto-friendly stance. This move has been celebrated by the cryptocurrency community, with many viewing it as a step towards legitimizing digital currencies.

In fact, Trump's transition team is reportedly discussing the potential creation of a new White House role for a "crypto czar" to oversee Bitcoin policy.

Bitcoin, being the first and most well-known cryptocurrency, was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto.

It was introduced as an open-source software designed to enable peer-to-peer transactions without the need for intermediaries like banks.

The cryptocurrency gained mainstream attention during its massive bull run in 2017, when its price surged to nearly $20,000.

Despite a subsequent crash, Bitcoin continued to attract interest from both retail and institutional investors.

By the late 2020s, Bitcoin had firmly established itself as a store of value, often referred to as "digital gold."

And here, the milestone shows that the future of cryptocurrency is more promising that it ever was, the $100,000 milestone is just the beginning of what could be an unknown journey.

Read: Bitcoin, The Fastest Asset To Reach A $1 Trillion Market Capitalization

Bitcoin, just like other cryptocurrencies, have their own share of a rollercoaster ride.

But its journey is not only a financial milestone but also a symbolic one.

It highlights the growing confidence in cryptocurrencies as a viable investment and a hedge against traditional market volatility. The rise of Bitcoin has also sparked interest in other digital assets, with investors exploring new opportunities in the cryptocurrency space.

But for Bitcoin, its rise to $100,000 is a testament to its resilience and growing acceptance.

It's a clear proof that Bitcoin has cemented its place as a significant player in the financial world.

The digital currency reached a peak of $103,800 before stabilizing slightly below the $100,000 threshold that same day.

Read: The First Documented Purchase Using Bitcoin: 10,000 BTC For 2 Pizzas

Bitcoin in reaching $100,000 marks a significant milestone in the cryptocurrency market, and its implications would likely extend across several domains.

Early adopters and holders who bought the cryptocurrency at lower prices should see massive returns. And with Bitcoin’s market cap closing in to $2 trillion, the milestone can cement its name as a more dominant player in the global financial system.

This can also make companies to accelerate their adoption to the cryptocurrencies, creating a positive market and enthusiasms.

Bitcoin could solidify its position as "digital gold," rivaling traditional safe-haven assets, and that some nations or entities may also start using Bitcoin as an alternative to the U.S. dollar for international transactions or reserves, de-dollarizing their assets.

However, the surge could lead to large-scale profit-taking, potentially causing market volatility. Not to mention how the increasing number of investors, fueled by FOMO (Fear of Missing Out), will make the price of Bitcoin to fluctuate even more.

Not to mention that the increasing interest can also help altcoins and memecoins to benefit an increased demand, possibly boosting their prices to new heights.

The increased popularity can further increase regulatory scrutiny.

Other risks include market corrections, even more energy debate due to the fact that Bitcoin mining leaves a lot of carbon emission, and also an increase in scams and fraud.

Long story short, Bitcoin reaching this new height is making it enter unchartered territory.

But fortunately, people are beginning to know the consequences that come with this milestone.

The surge can also be attributed to Elon Musk being announced to lead Department of Government Efficiency (DOGE), which is also an backronym referencing to a popular internet meme and a cryptocurrency Musk supports.

Additionally, the Bitcoin halving event in April 2024 played a significant role.

This event, which occurs approximately every four years, reduces the reward for mining new blocks, thereby decreasing the supply of new Bitcoins and increasing scarcity3. Combined with the growing acceptance of Bitcoin as a legitimate financial asset, these factors created a perfect storm for Bitcoin's price surge.

Read: Satoshi Nakamoto, The Creator Of Bitcoin, Has 'Woken Up'