By Over its remarkable 15-year journey, Bitcoin has weathered countless setbacks and market downturns, but now it stands on the verge of reaching the once-unimaginable milestone of $100,000.
As the world’s leading cryptocurrency, Bitcoin has seen an extraordinary year of growth, more than doubling in value since January 1. At the time of writing, its price hovers near $99,000, after briefly hitting $99,347 around 3:00 a.m. ET.
“This $100K milestone is a vindication for Bitcoin believers and a reckoning for its harshest skeptics,” said Garrick Hileman, an economic historian and cryptocurrency expert, in an interview with Newsweek. “When Bitcoiners in 2021-22 embraced the ‘laser eyes until $100K’ slogan, they faced widespread mockery after the market crash that followed. Today, it’s clear who has the last laugh.”
The impressive performance of Bitcoin in 2024 is largely attributed to a pivotal move by the Securities and Exchange Commission (SEC), which in March approved the use of U.S.-listed exchange-traded funds (ETFs) to track Bitcoin’s value.
However, the latest price surge is closely tied to the victory of President-elect Donald Trump in the 2024 presidential election, fueling optimism that his administration will implement crypto-friendly policies.
Since Bitcoin’s inception in 2009, its growth has been nothing short of phenomenal. According to the 2024 Crypto Wealth Report, the number of millionaires whose fortunes stem from Bitcoin has skyrocketed to 85,400—an astonishing 111% increase in just one year.
Despite its current success, Bitcoin’s journey has been riddled with volatility, legal battles in the cryptocurrency market, and cautionary tales highlighting the risks associated with investing in this unconventional digital asset.
What Is Bitcoin?
Bitcoin was introduced by Satoshi Nakamoto, the pseudonymous creator(s) behind a 2008 white paper that envisioned “a purely peer-to-peer version of electronic cash.” This revolutionary currency, Nakamoto explained, would enable direct online payments between parties without relying on traditional financial institutions.
Unlike government-controlled fiat currencies, Bitcoin operates on a decentralized network of computers worldwide. These computers adhere to a shared set of rules, ensuring no single individual or organization has control over the system.
Every transaction is meticulously recorded in a public ledger called the blockchain. Transactions are grouped into blocks, which are then linked sequentially, forming a transparent and tamper-resistant chain.
To prevent inflation similar to what affects traditional currencies, Bitcoin’s supply is capped at a fixed total of 21 million coins. New Bitcoins are introduced through a process called mining, where high-powered computers solve intricate mathematical problems. This process validates transactions and adds them to the blockchain, ensuring the network’s security and transparency. To date, approximately 19 million Bitcoins have already been mined.
Once mined, Bitcoins can serve various purposes. They can be used to purchase goods and services from vendors who accept them, sent across international borders without the need for intermediaries, or held as an investment. Many investors choose to hold their Bitcoin, waiting to capitalize during one of its frequent bull runs, which have historically yielded significant returns.
How Did Bitcoin Reach the $100K Milestone?
Bitcoin’s journey to $100,000 has been a rollercoaster ride marked by dramatic highs and crushing lows. The cryptocurrency’s first major breakthrough came in 2017 when its price skyrocketed to nearly $20,000. However, by the end of 2018, Bitcoin had plunged to around $3,000, a crash often likened to the bursting of the dot-com bubble. Concerns about market fraud and the ease with which governments could regulate or ban cryptocurrencies fueled skepticism, stalling growth for several years.
The next surge arrived in 2021, with Bitcoin climbing to $60,000, driven by institutional investors and increasing recognition of Bitcoin as a potential hedge against inflation. Yet, this peak was short-lived. By mid-2021, Bitcoin’s value had halved, with contributing factors including China’s crackdown on Bitcoin mining and Elon Musk’s announcement that Tesla would suspend Bitcoin payments for vehicle purchases.
Despite a recovery to $69,000 in late 2021, rising interest rates from the Federal Reserve to combat inflation discouraged riskier investments, including cryptocurrencies. This shift ushered in a prolonged “crypto winter,” as described by the World Economic Forum. Confidence was further shattered in late 2022 with the collapse of FTX, one of the largest cryptocurrency exchanges, leaving Bitcoin at just $16,548 by year’s end.
NPR’s David Gura reflected on the turbulent year in December 2022, suggesting, “2022 may be remembered as the year cryptocurrencies lost their allure, or perhaps as a period of growing pains for an industry still maturing.”
Fast forward to 2024, and Bitcoin has staged a remarkable comeback. With a surge of nearly 130% this year, it now hovers tantalizingly close to the $100,000 mark, a testament to its resilience and enduring appeal among investors.
What’s Next for Bitcoin?
Bitcoin’s remarkable rally in 2024 owes much to key developments such as the SEC’s approval of Bitcoin-related investment products, the Federal Reserve’s first interest rate cut since the COVID-19 pandemic, and the post-election optimism surrounding new policies. These factors have collectively fueled its meteoric rise this year.
“Bitcoin is not going to go to one-hundred thousand dollars. Full stop,” said Craig Wright, an Australian computer scientist who controversially claimed to be one of Bitcoin’s creators, in July 2020. Wright went on to label Bitcoin a “Ponzi scam,” dismissing its potential as a legitimate asset. Yet, for those who held onto their investments during downturns and ignored panic-induced sell-offs, Bitcoin has proven to be highly rewarding.
“There are valid reasons to believe Bitcoin can climb even higher from its current levels,” said cryptocurrency expert Garrick Hileman. “But caution is essential, as these price bubbles often lead to newcomers being wiped out when they jump in too late.”
Although Bitcoin is still not widely used as a payment method—largely because many prefer to hold onto it rather than spend it—it is increasingly viewed as a hedge against currency fluctuations. This investment perspective may bolster Bitcoin’s appeal as global economic dynamics evolve.
“For now, Bitcoin’s price remains too closely tied to tech equities for it to be considered a safe-haven asset like gold,” Hileman added. “However, as the economy continues to digitize, speculation is growing that Bitcoin could eventually replace gold as the ultimate store of value.”