Bitcoin, once a hot topic trend a few years back, has seen a resurgence in interest with the rise of AI. Let's explore its current state and future implications.

Discover the Hidden Potential of Digital Currencies

So Remind Me – What Is Bitcoin Again?

Bitcoin stands as the pioneer and most renowned cryptocurrency. It differs from earlier digital currencies in significant ways. It is decentralized, with its blockchain shared across countless computers, ensuring no single entity controls the network. Transactions are encrypted, granting access only to those with the correct keys in their private wallets.Some envision Bitcoin and other cryptocurrencies as the bedrock of future financial systems, capable of handling transactions without intermediaries or central banks, thus avoiding inflation. However, critics raise concerns about environmental costs and regulatory challenges, which attract illegal activities.In 2010, 10,000 Bitcoin could buy just two pizzas. Today, one Bitcoin is worth nearly $100,000, an astonishing increase of close to five billion percent. In contrast, gold rose by over 100% during the same period, while the US dollar's value dropped by about 45% due to inflation.

The Trump Train

Whether seen as controversial or transformative, Trump's influence on financial markets as both the 45th and 47th president is undeniable. His endorsement of Bitcoin, a departure from previous incumbents, has accelerated the current resurgence in cryptocurrency interest.Since announcing his belief in the US stocking up on digital currency at a 2024 convention, Bitcoin's price has soared, and mainstream interest in it as an investment vehicle has reached new heights. Bitcoin fans believe his interest will prompt other countries to integrate cryptocurrencies into their economic strategies, accelerating its global adoption and driving up its value.

So What Are Altcoins?

Altcoin refers to cryptocurrencies other than Bitcoin. The current market cap of all cryptocurrencies is around $3.5 trillion, slightly higher than the UK's GDP.Ethereum is the most well-known altcoin and second-largest cryptocurrency. It is blockchain-based like Bitcoin but offers additional functionality, such as enabling smart contracts. This allows for automated payments based on pre-determined conditions.Meme coins, based on internet memes like Doge Coin, have also made a significant impact. Despite their seemingly joking nature, their market cap currently stands at $120 billion. Elon Musk is even planning to name a new branch of the US government after Doge.

The Future Of Money?

The resurgence in Bitcoin and cryptocurrency interest suggests their resilience. But will they become the backbone of a new financial infrastructure?On one hand, with increasing adoption and high levels of FOMO due to its soaring price, Bitcoin's status as a store of value and hedge against inflation gives it an advantage. The ongoing evolution of innovative features like Ethereum's smart contracts adds to its potential.On the other hand, challenges remain around regulation, including high volatility and energy use.Ultimately, Bitcoin has already forced us to rethink currency and value. Like other transformative technologies, it may be impossible to stop its impact on the world.