On Wednesday, Bitcoin reached a historic milestone, with the price of a single coin surpassing $100,000 for the first time. This marks a stunning achievement for the cryptocurrency, which began as an experimental financial asset 16 years ago and was once dismissed as a passing fad. Bitcoin’s rise has been nothing short of extraordinary, evolving from a niche project to arguably one of the most successful investment products of the past two decades.
The cryptocurrency’s journey began in 2008 when an anonymous creator, known only as Satoshi Nakamoto, introduced Bitcoin as a decentralized digital currency. The first notable Bitcoin transaction took place in May 2010, when early enthusiast Laszlo Hanyecz famously used 10,000 Bitcoins to purchase two pizzas from Papa John’s. At the time, the Bitcoin used in the purchase was worth just around $40, but the same 10,000 Bitcoins are now worth approximately $1 billion. That dinner has since become an iconic moment in Bitcoin history, illustrating just how far the digital currency has come.
Bitcoin’s meteoric rise is a testament to its resilience and growing acceptance. The total value of all Bitcoins in circulation has now surpassed $2 trillion, greater than the combined market capitalization of major companies like Mastercard, Walmart, and JPMorgan Chase. Once seen as a fringe asset, Bitcoin has attracted attention from major financial players, including Wall Street giants, as well as individual investors eager to capitalize on its potential for high returns.
The rise of Bitcoin has sparked the creation of a vast ecosystem around it, from cryptocurrency exchanges like Coinbase to new blockchain-based technologies. Public figures, athletes, and entrepreneurs, most notably Elon Musk, have contributed to Bitcoin’s visibility, often promoting it as a revolutionary financial asset. Even the U.S. president-elect, Donald J. Trump, has embraced the cryptocurrency, expressing support during his campaign and even suggesting the creation of a federal Bitcoin stockpile that could further drive its value.
Finn Brunton, author of Digital Cash, notes the incredible transformation of Bitcoin from its humble beginnings. “Bitcoin started as essentially an experimental hobbyist project,” Brunton said. “To see where it is now is to see a really impressive feat.”
The surge in Bitcoin’s value has also been fueled by growing institutional interest. After a rough 2022, when Bitcoin’s price plummeted below $17,000 amid the collapse of the FTX crypto exchange, the digital currency has made a powerful comeback this year. Regulatory changes played a key role in this recovery, particularly the approval of financial products tied to Bitcoin, which allowed Wall Street firms to enter the market and invest billions into the cryptocurrency.
Bitcoin’s recent resurgence has been further bolstered by the election of Donald Trump. Crypto enthusiasts have hailed Trump as the first “Bitcoin president,” with his policies and pro-crypto rhetoric fueling the cryptocurrency’s upward trajectory. As Bitcoin approached its $100,000 milestone, the election of Trump sent the price soaring, benefiting crypto investors who had once been anxious about stricter regulation under the Biden administration.
In the wake of the election, cryptocurrency leaders have also exerted significant influence on U.S. politics, spending millions of dollars on lobbying efforts to shape the regulatory landscape. Recently, top executives from the crypto industry contributed about $135 million to political campaigns, hoping to ensure favorable policies that would further support Bitcoin and other digital assets.
The growing influence of cryptocurrency on U.S. politics became even more apparent last month, when Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), announced his resignation. Gensler had been a vocal critic of the crypto industry, leading a crackdown on digital asset regulation. His departure was seen as a win for the crypto community, which had long sought more favorable regulatory treatment. Just hours before Bitcoin crossed the $100,000 mark, Trump nominated Paul Atkins, a former SEC commissioner and known crypto supporter, to lead the agency. Atkins, who has advised a cryptocurrency industry group, is expected to advocate for policies that benefit digital assets.
Bitcoin’s ascent to $100,000 is more than just a price milestone. It is a clear signal that the cryptocurrency has achieved a level of acceptance and integration into the global financial system that few could have predicted when it was first introduced. As Bitcoin continues to grow in value and influence, it remains to be seen how it will shape the future of finance and whether it will sustain its position as the leading digital asset in the years to come.
