NEW YORK: Bitcoin has topped the USD 100,000 mark as a massive rally in the world’s most popular cryptocurrency sparked by the election of Donald Trump rolls on.
The milestone comes just hours after the President-elect signalled a lighter regulatory approach to the crypto industry when he said he intends to nominate cryptocurrency advocate Paul Atkins to be the next chair the Securities and Exchange Commission.
Bitcoin has soared to unprecedented heights since Trump won the election Nov. 5. The cryptocurrency has climbed dramatically from USD 69,374 on Election Day and rose as high as USD 103,713 Wednesday, according to CoinDesk. Just two years ago, bitcoin dropped below USD 17,000 following the collapse of crypto exchange FTX.
How long bitcoin will stay above the USD 100,000 mark is uncertain. As with everything in the volatile cryptoverse, the future is impossible to predict. And while some are bullish on future gains, other experts continue to warn of investment risks.
Here’s what you need to know.
Back up. What is cryptocurrency again?
Cryptocurrency has been around for a while now. But, chances are, you’ve heard about it more and more over the last few years.
In basic terms, cryptocurrency is digital money. This kind of currency is designed to work through an online network without a central authority – meaning it’s typically not backed by any government or banking institution – and transactions get recorded with a technology called a blockchain.
Bitcoin is the largest and oldest cryptocurrency, although other assets like Ethereum, tether and dogecoin have also gained popularity over the years. Some investors see cryptocurrency as a “digital alternative” to traditional money, but the large majority of daily financial transactions are still conducted using fiat currencies such as the dollar. Also, bitcoin can be very volatile, with its price reliant on larger market conditions.
