As Donald Trump, who has indicated aspirations to de-regulate the cryptocurrency industry, is ready to take office as US president, Bitcoin reached a record high of $109,000 on Monday.
Prior to Trump’s inauguration ceremony, Bitcoin soared to an all-time high of $109,241, but it then dropped back to $107,765 at roughly 0740 GMT.
Since Trump won the presidency in November, the largest cryptocurrency in the world has grown rapidly; in early December, bitcoin crossed the $100,000 mark for the first time.
It followed his appointment of bitcoin supporter Paul Atkins to lead the US securities watchdog, which bolstered hopes that the incoming administration will de-regulate the industry.
Trump shifted his position and became a strong supporter of cryptocurrencies throughout his election campaign, despite having previously called them a “scam.”
He introduced his own cryptocurrency, suitably named $TRUMP, over the weekend, which sparked frantic buying and caused its market capitalization to surge to several billion dollars.
Trump posted the following on his Truth Social platform when bitcoin hit the historic $100,000 mark: “CONGRATULATIONS BITCOINERS!!!” One hundred thousand dollars! YOU ARE WELCOME! We will work together to restore America’s greatness.
Since their inception, cryptocurrencies have garnered media attention due to their extraordinary volatility and the demise of multiple business titans, most notably the FTX exchange platform.
A individual or group writing under the pseudonym Satoshi Nakamoto came up with the idea for Bitcoin in 2008.
By creating a decentralized platform for transactions, it was promoted as a means of escaping traditional financial institutions.
When powerful computers solve intricate puzzles to confirm transactions made on a meddle-proof register called the blockchain, the digital currency is created, or “mined,” as a reward.
Bitcoin has long been criticized for being the preferred payment method for making untraceable transactions on the “dark web,” a covert area of the internet where illegal activity takes place.
The asset has frequently been attacked for enabling ransomware extortion and aiding in money laundering.
Because cryptocurrency mining uses a lot of energy, its carbon footprint has also drawn attention.