Wherever Satoshi Nakamoto is, he must be very proud of his creation. Why? Well, Bitcoin has just surged past the $100,000 mark (equivalent to Ksh. 13,366,000), cementing its status as a financial powerhouse that has defied countless predictions and challenges.
The Bitcoin story is really one for the ages. It began as an experimental project outlined in a nine-page white paper published anonymously on Halloween in 2008. The original vision was a decentralized digital currency that could operate without traditional banking systems, with every transaction recorded on a public blockchain.
From those humble beginnings, the cryptocurrency has evolved from an obscure project by hackers and political radicals to a mainstream financial asset worth a collective $2 trillion, which is more than the combined value of Mastercard, Walmart, and JPMorgan Chase.
Bitcoin’s recent surge to $100,000 isn’t just about technology; it’s a political narrative. The cryptocurrency saw a major spike following Donald Trump’s election victory, jumping from around $69,000 on Election Day to $75,000 shortly after.
Investors are betting on a more crypto-friendly administration, especially with Trump’s promise of a Bitcoin-friendly approach and his nomination of Paul Atkins, a crypto industry insider, to lead the Securities and Exchange Commission (SEC).
Getting to $100,000 was not smooth sailing, though. Just two years ago, Bitcoin was trading below $17,000 after the catastrophic collapse of the FTX crypto exchange. Wall Street titans like Jamie Dimon once dismissed it as a “fraud” and a “Ponzi scheme.” Even Trump himself previously called it “a scam.”
But 2024 has been a game-changer. The SEC’s approval of Bitcoin exchange-traded funds from major players like BlackRock has brought unrivaled legitimacy. Mainstream investors who once viewed cryptocurrency with skepticism are now diving in.
Most experts believe there’s a psychological magic to this milestone. Crossing the $100,000 threshold is a signal of maturity and mainstream acceptance. Yet, Bitcoin remains complex. Despite this surge, it’s still a potential financial revolution and a volatile asset. Environmental groups continuously oppose its energy consumption, and cybercriminals have used it for roughly $500 million in ransom payments this year.
What no one can deny is that Bitcoin has defied expectations. As Federico Brokate from 21 Shares puts it, reaching $100,000 represents “legitimacy” for this digital asset. Whether it will continue its meteoric rise or face another dramatic correction remains to be seen.