Background

Blockchain technology, implemented in 2008 by the anonymous person known as Satoshi Nakamoto, was initially insignificant compared to the US Dollar. At that time, the price of 1,200 BTC was just 1 USD.

Over Time

Since its inception in 2008, Bitcoin has gradually become a store of value. Today, after surviving several years and four past halving (which occur every four years and reduce the reward for Bitcoin mining by half), Bitcoin's price recently surged to $73k.

Factors Contributing to Bitcoin's Rise

Federal Reserve's Monetary Policy: The Federal Reserve prints money to buy its own bonds, causing the devaluation of the Dollar. This devaluation leads to all-time highs for stocks, cryptocurrencies, and other risk assets.

ETF Approvals: The approval of ETFs in various countries, especially the US SEC BTC ETF approval and the upcoming $ETH ETF, significantly boost Bitcoin's legitimacy and value.

Halving Events: Each halving reduces Bitcoin's supply, leading to bull markets. Historically, every market surge has followed a halving event.

Bank Collapses: The collapse of big banks, including central banks in different regions, underscores the instability of traditional financial systems.

Interest Rate Cuts: The Federal Reserve's interest rate cuts further drive investors toward Bitcoin as a more attractive investment.

Bitcoin Adoption

A growing number of people are now turning to Bitcoin to safeguard their budgets, viewing it as deflationary compared to the inflationary nature of traditional currencies. The Federal Reserve's money-printing practices have led to increased taxes year by year. Since its establishment on December 23, 1913, the Federal Reserve has aimed to control commodities like gold, silver, and now Bitcoin, using endlessly printed paper currency. This has eroded public trust.

In contrast, the world is beginning to embrace blockchain technology, specifically Bitcoin, which is known for its limited supply, store of value, global transaction capability, and 24/7 market availability. This shift could potentially end the traditional banking system and the era of paper currencies like the USD. 

The Federal Reserve's control over the USD, with its unlimited supply, stands in stark contrast to Bitcoin's journey from 1,200 BTC = 1 USD to 1 BTC = $73k, capturing global attention. Notably, figures like El Salvador's government and Donald Trump have shown support for Bitcoin, with Trump stating that the United States will own the remaining Bitcoins.

Many analysts predict that Bitcoin's price could reach $1M by 2030. This widespread adoption of Bitcoin is poised to revolutionize the financial world, potentially ending the era of paper currency.

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