Bitcoin, the leading cryptocurrency, has reached new heights in terms of value and adoption in 2024. According to an analysis by Balaji Srinivasan, author of Network State, Bitcoin has surpassed its all-time high (ATH) against the currencies of fourteen different countries with a population of more than one billion and a GDP of more than $7 trillion. Here are the details…
Bitcoin gained value against the currency value of countries
Countries that have seen their currencies lose value against Bitcoin include Argentina, Japan, Turkey, Brazil, Russia, Colombia, South Africa, Nigeria, Egypt, Iran, Ethiopia, Venezuela, Sudan and Zimbabwe. Some of these countries face economic crises, hyperinflation, sanctions or political instability that erode the confidence and purchasing power of their national currencies. For example, Argentina and Japan recently entered a technical recession, while Venezuela and Zimbabwe faced astronomical inflation rates.
Srinivasan’s analysis also shows that Bitcoin’s dominance is not limited to outperforming national currencies. Bitcoin also reached unprecedented highs against the US long bond ETF TLT and the S&P Regional Banking ETF KRE. These are two of the world’s most widely traded financial assets, representing the US bond market and the US banking industry respectively. Bitcoin’s performance against these assets demonstrates its growing potential as a viable alternative to traditional financial instruments, especially in a low-interest and high-debt environment.
Why did BTC gain value?
Bitcoin’s rise in value and adoption can be attributed to several factors, including its limited supply, decentralized and censorship-resistant nature, network effects, innovation and evolution, and increasing acceptance and integration by various institutions, platforms, and individuals. Bitcoin has also benefited from global uncertainty and volatility caused by the COVID-19 pandemic, the US-China trade war, the climate change crisis, and geopolitical tensions in various regions.
Supporters and enthusiasts of Bitcoin believe that the cryptocurrency is on its way to becoming a global reserve asset, a digital gold, and a universal medium of exchange. They argue that Bitcoin offers a superior store of value, a hedge against inflation and devaluation, and a way to protect and empower individuals and communities from the failures and abuses of the traditional financial system.
Cryptocurrency also has risks
However, Bitcoin also faces many challenges and risks, such as regulatory uncertainty, security breaches, technical glitches, scalability issues, environmental concerns and market manipulation. Bitcoin’s volatility and unpredictability also make it difficult to use it as a reliable unit of account and stable means of payment. Critics and skeptics of Bitcoin argue that the cryptocurrency is a speculative bubble, a Ponzi scheme, a vehicle for illicit activities, and a threat to the sovereignty and stability of nations and central banks.
The future of Bitcoin is still uncertain and controversial, but its current successes and impact are undeniable and unprecedented. Bitcoin has proven to be a resilient and revolutionary phenomenon that has challenged and transformed the world of money and finance. Although Bitcoin will continue to rise or fall, succeed or fail, it has already made history and changed the world.
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