Market changes that cannot be ignored

Bitcoin, blockchain, and cryptocurrencies were all hot trends a few years ago. But technology waits for no one. With all the hype around AI, it's no wonder you think it has been forgotten. it's not.

In fact, if you keep up with the news, you've likely noticed a resurgence of interest in decentralized digital currencies and the innovative distributed ledger technology that underpins them.

So why is this the case? How will it affect the value of Bitcoin, one of the best investments in living memory? And what many say is the “future of money” What is the current state of the technology that you predict will become a reality?

Let's take a look at what's happening in the world of Bitcoin, blockchain, and cryptocurrencies as we head into 2025.

Let me remind you again – what is Bitcoin?

Bitcoin is the first and most well-known cryptocurrency and is a type of digital currency. Cryptocurrency (or “crypto”) differs from previous digital currencies in two important ways. First, being decentralized means that the database that records balances and transactions (called the blockchain) is shared among hundreds of thousands of computers. These computers must reach a “consensus” so no single person or organization has control over the network. Second, transactions are protected by encryption, and only those with the appropriate keys can access your private wallet and spend the funds.

Some believe that Bitcoin and other cryptocurrencies could become the foundation of the future financial system. This is because transactions can be processed without intermediaries or central banks, avoiding problems such as inflation caused by currency value manipulation. However, critics argue that cryptocurrencies do not solve these problems and create other problems, such as high environmental costs and regulatory challenges that attract money laundering, criminals and fraudsters. .

However, Bitcoin is perhaps most famous for its explosive growth in value. In 2010, 10,000 Bitcoins were used to buy two pizzas. One Bitcoin is now worth about $100,000, an increase of nearly 5 billion percent. In contrast, gold has appreciated by just over 100% over the same period, while the value of the US dollar has fallen by about 45% due to inflation.

trump train

Whether you see him as controversial or transformative, Trump's influence on financial markets as the 45th and 47th president is undeniable. President Trump's enthusiastic support for Bitcoin (an attitude markedly different from that of the former incumbent) is thought to have accelerated the current resurgence of interest in virtual currencies.

Since he announced his idea that the United States should stockpile digital currencies at the 2024 Summer Convention, the price of Bitcoin has soared, and mainstream interest in using Bitcoin as an investment vehicle has scaled. Exceeds.

Bitcoin fans argue that Trump's interest will encourage other countries to incorporate the cryptocurrency into their economic strategies. This will accelerate its adoption into the global financial system, further increasing its value and bringing about further innovation and disruption.

So what are altcoins?

Altcoin is a name that refers to virtual currencies other than Bitcoin, and refers to alternative coins. The market capitalization of all cryptocurrencies currently stands at approximately $3.5 trillion, which is slightly more than the UK GDP ($3.4 trillion).

The most well-known altcoin and second largest cryptocurrency is Ethereum. Ethereum is blockchain-based, like Bitcoin, but includes additional features. This includes the ability to run computer code on the blockchain and enable smart contracts. This makes it possible to program blockchains to automatically make payments when predetermined conditions are met, such as when work is completed.

Another category of altcoins are meme coins. These are cryptocurrencies based on internet memes, the most famous being Doge Coin, which is based on the popular image of a dog and is frequently shared on social media and internet message boards. Sounds like a joke, right? However, the memecoin's market cap has reached $120 billion at the time of writing, and Elon Musk appears to be planning to name a new branch of the US government after Doge.

The future of money?

So what does the future hold for Bitcoin and cryptocurrencies? Once on the verge of being forgotten as the AI ​​boom took hold, it is now firmly back on the agenda.

The renewed interest, not to mention the monetary value, suggests that the technology is resilient and unlikely to simply be forgotten, as was expected during the downturn.

But will it be the backbone of a new, fairer, and more efficient financial infrastructure, as fans believe? Or will there always be speculative bubbles that encourage gambling, get-rich-quick schemes and scams?

Well, a lot may depend on how successful the next US president's planned economic reforms are. This is an issue that currently divides economic analysts.

High levels of FOMO due to increased adoption and skyrocketing prices have seen it valued favorably for its status as a store of value and hedge against inflation, with it sometimes being considered “digital gold.” The continued evolution of more innovative features, such as Ethereum's smart contracts, is likely to further add to this.

However, regulatory challenges clearly remain, including periodic value collapses and high levels of volatility leading to high levels of energy use.

But all this may mean little in the end. Bitcoin is already forcing us to rethink how we treat currency and value, showing that it is possible to build a more efficient and democratic financial system based on technology and mathematics rather than central banks. I am.

And like any other innovative technology, AI and the internet being two examples, once Pandora's box is opened, it's very difficult to stop it from changing the world.