Bitcoin reached a record price of $100,000 on Wednesday, marking an extraordinary milestone for the once-niche digital currency. The achievement underscores Bitcoin’s evolution from an experimental asset dismissed by Wall Street into a central player in global finance.
The rise follows a series of events that reignited enthusiasm for cryptocurrency. Wall Street firms began offering Bitcoin exchange-traded funds (ETFs) earlier this year, attracting billions in fresh investment. President-elect Donald Trump’s vocal support for Bitcoin also fueled its surge, as crypto advocates celebrated him as the first “Bitcoin president.”
The Legacy of Bitcoin Pizza Day
The milestone contrasts sharply with Bitcoin’s humble origins. In May 2010, Laszlo Hanyecz made history by purchasing two pizzas for 10,000 Bitcoins—then worth $40. Today, that transaction would be valued at $1 billion, highlighting Bitcoin’s meteoric rise.
Bitcoin was initially conceived as a decentralized currency, free from government control. Created by the pseudonymous Satoshi Nakamoto in 2008, the digital coin was designed to serve as a store of value resistant to inflation and as a medium for peer-to-peer transactions recorded on the blockchain.
From Collapse to Comeback
Bitcoin has experienced dramatic volatility. After reaching $70,000 in late 2021, its price plummeted to under $17,000 in 2022 amid the collapse of major crypto firms like FTX. Regulatory scrutiny under the Biden administration further compounded industry woes.
However, the cryptocurrency rebounded in 2023. The Securities and Exchange Commission (SEC) lost a court battle over Bitcoin ETFs, allowing firms like BlackRock and Fidelity to introduce new investment vehicles tied to the currency. This renewed institutional interest pushed Bitcoin to new heights.
Trump’s election win added momentum. His promises to ease regulations and appoint crypto-friendly officials, including Paul Atkins as SEC chairman, have been widely praised by industry leaders.
Challenges Ahead
Despite its successes, Bitcoin remains controversial. Critics highlight environmental concerns tied to its energy-intensive mining process and its use in illicit activities. Cybercrime involving cryptocurrencies accounted for $500 million in ransom payments in the first half of 2023.
Bitcoin’s latest rise also highlights contradictions in its original vision. Designed to operate independently of governments, its value now partly stems from political support. Crypto author Finn Brunton observed, “Bitcoin’s real value comes from its association with a politician and a state actor,” signaling an ironic twist in its journey.
As Bitcoin solidifies its position in global finance, its path forward will be shaped by regulatory developments, market adoption, and the evolving priorities of its supporters and critics alike.
