The price of “Bitcoin” sees an unprecedented increase, reaching $ 99,028 in Friday’s trade, which has raised speculation about the future of the digital currency, and whether the series will continue of records, especially since it is considered a high-risk investment.
In an analysis of the continuous increase in the price of Bitcoin and the reasons behind it, the researcher in international relations and political economy, Abu Bakr Al-Deeb, explained, “The intention of the head of the Securities and Exchange Commission is of the USA, Gary Gensler, to leave his post next January, played a role in strengthening confidence in the currency market.
In an interview with the Al-Hurra website, Al-Deeb believed that Republican Donald Trump’s victory in the US presidential elections “provided a strong stimulus to the markets, with the decline in gold and oil prices against the strength of the dollar. “
During his election campaign, Trump promised to make the United States “the world capital of Bitcoin and cryptocurrencies.”
By supporting cryptocurrencies, Trump took a position against the administration of US President Joe Biden, who is considered a supporter of strict regulation of the controversial sector, which is largely not under the control of institutions. .
Al-Deeb pointed out that investors are “turning towards high-risk assets such as Bitcoin, hoping that the Trump administration will be more flexible towards cryptocurrencies, which helped the digital currency increase by more than 40 percent since the election was announced. results.”
Unprecedented price .. “Bitcoin” sets a new record
On Friday, the price of the cryptocurrency Bitcoin set a new record, rising one percent to $99,099.
He stressed that “Trump’s good economic record strengthens investors’ confidence in Bitcoin as an alternative asset, especially in anticipation of easing regulations. ”
Among the reasons for the increase in the price of Bitcoin, Deeb highlighted a draft law proposed by Republican Senator Cynthia Lummis, “to launch a strategic reserve of Bitcoin, which includes the purchase of a million cryptocurrencies, which representing about 5 percent of the Bitcoin available globally.”
The expert believed that this project “could lead to a significant increase in demand for digital currency, and further increase its market value.”
Bitcoin price breaks the $95,000 barrier for the first time
On Thursday, the price of the digital currency Bitcoin crossed the threshold of $ 95,000 for the first time in its history, driven by hopes that former Republican President Donald Trump will soon return to the White House and expected that he approves more flexible legislation in the field of cryptocurrencies.
He also noted that the move to cryptocurrencies “reflects changes in investor preferences, as 900 bitcoins are issued per day, while requests for new commercial assets reach 2,800 bitcoins per day, which increases the pressure on the limited supply. “
For his part, the expert in the field of digital currency, Ahmed Sim, in a previous intervention with Al-Hurra channel, expected that “the Bitcoin currency will be officially accepted, and the use of the most central banks in 2025 these currencies in finance. payments, which saves a lot of time.”
He also indicated that by using these currencies, bank owners will be able to “save $120 billion” previously spent on fees and transaction costs.
“Debunking the Digital Gold Theory”
Despite the large increases, Deeb pointed out that the nature of Bitcoin depends on supply and demand, and that the market is currently seeing a certain wave of demand driven by economic and geopolitical factors.
But he warned of the possibility of instability, noting that Bitcoin’s growing connection to financial markets “undermines the theory that it describes (the currency) as digital gold.”
Libya .. A group that runs a Bitcoin mining factory was arrested, including a Chinese
The Office of the Attorney General in Libya announced the arrest of two Libyans and 10 Chinese who run a Bitcoin mining factory on the outskirts of the city of Misrata, east of Tripoli.
Ultimately, Deeb emphasized that Bitcoin is not a risk-free investment, as it remains vulnerable to major fluctuations and global political and economic influences.
Bitcoin currency has seen several historical increases in its value, one of the most prominent of which was in December 2017, when its value reached around 20 thousand dollars, as it rose due to the increasing interest growth in digital currency and the media widely talking about it. them.
At the end of 2020, Bitcoin returned to achieve a new record after crossing the barrier of $29,000, paving the way for a major increase in 2021.
In November 2021, Bitcoin recorded an all-time high with a value exceeding $68,000, benefiting from large companies such as Tesla and MicroStrategy adopting it and investing large amounts in it, as well as using Bitcoin as fund to hedge against inflation with some. large financial institutions.
However, its value declined significantly in 2022, due to market conditions and fluctuations.
2024-11-22 12:43:00
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**Considering the environmental concerns surrounding Bitcoin mining, what innovative solutions can be developed to balance its technological advancement with sustainable practices?**
## Bitcoin Price Surge: Analyzing the Reasons and Risks
This article discusses the recent surge in the price of Bitcoin, exploring potential driving factors and highlighting its inherent risks. Let’s break down the key topics and formulate discussion-provoking questions:
**Part 1: The Bitcoin Boom – Causes and Drivers**
* **Impact of Political Climate:**
* Q: The article mentions Trump’s potential return to office and its potential positive influence on Bitcoin. How might political decisions and regulations impact the future of cryptocurrencies?
* Q: Could the draft law proposed by Senator Lummis truly drive a significant increase in Bitcoin’s value? What are the potential long-term consequences of such a massive purchase by the government?
* **Investor Behavior and Market Demand:**
* Q: The article suggests shifting investor preferences are partly driving the Bitcoin price up. What are the driving forces behind this shift, and how sustainable is this trend?
* Q: Do you think Bitcoin is becoming a mainstream investment, or is this a temporary bubble driven by speculation?
**Part 2: The Future of Bitcoin – Risks and Uncertainties**
* **Volatility and “Digital Gold” Theory:**
* Q: The article acknowledges the risk associated with Bitcoin’s volatility. Is Bitcoin truly a “digital gold,” or is this analogy misleading given its fluctuating value?
* Q: What role should regulation play in mitigating the risks associated with Bitcoin investments?
* **Long-Term Outlook and Adoption:**
* Q: The article cites predictions about wider adoption by central banks. How realistic is this scenario, and what implications would it have on the global financial system?
* Q: Given past price drops, is Bitcoin a suitable long-term investment, or is it too risky?
**Part 3: Ethical Considerations and Global Impact**
* **Bitcoin Mining’s Environmental Impact:**
* Q: The article briefly mentions a Bitcoin mining operation in Libya. What are the environmental implications of Bitcoin mining, and how can these issues be addressed?
* **Accessibility and Equity:**
* Q: Does the increasing value of Bitcoin exacerbate existing wealth inequalities? How can we ensure that the benefits of cryptocurrency are accessible to everyone?
These questions aim to stimulate discussion and analysis beyond the surface level, encouraging diverse viewpoints and critical thinking about Bitcoin’s complex and evolving landscape.
