In a development that cements cryptocurrencies’ rise as an investment opportunity, Bitcoin has surged past the $120,000 mark for the first time on July 14, with a record market capitalisation of $2.41 trillion, almost equal to the entire GDP of Italy.
The flagship cryptocurrency has risen by over 29% from the same date last year, even as venture capitalists, governments and individual investors take notice. Bitcoin has come a long way since its launch in early 2009 by an anonymous coder who no one has been able to identify yet.
Bitcoin first attracted authorities’ attention when it first rose to its first high of $19,138 in December 2017. Its success has attracted awe, concern and opportunity in equal measure ever since, depending on whom you ask. Regulators and government agencies have been concerned about tax evasion and terror financing by those looking at cryptocurrencies as an alternative to fiat currencies, even as venture capitalists and economists and scientists have been studying its rise since.
Many governments have legalised their use, including Japan, Germany, Singapore, Hong Kong and others, actively encouraging trading and mining with investor-friendly regulations.
Many countries started regulating cryptocurrencies after their surging popularity forced them to treat them at par with securities. Some, like Pakistan, are looking at crypto trading and mining as an opportunity to diversify their revenue streams, while Indian authorities are still dragging their feet to chalk out a clear policy for cryptocurrency trading.
Incumbent US President Donald Trump had endorsed the use of cryptocurrencies during his re-election campaign, aiding Bitcoin’s value to rise north of $100,000. The US President has also ordered the creation of a ‘Strategic Bitcoin Reserve’ and his administration is pushing the US Congress to debate key bills like the CLARITY Act, the Anti-CBDC Surveillance State Act that aim to facilitate the regulation of cryptocurrencies. Analysts are expecting Bitcoin to rise another 10-15% if these bills get passed during the week.
