Bitcoin, a digital currency that has been making waves in the financial world, reached another record high above $103,000 on Thursday. This remarkable achievement was fueled by the expectations of a cryptocurrency-friendly White House. In Hawaii, local advocates believe that the state is well-positioned to capitalize on this booming market, although the full adoption of Bitcoin will take time.

Unlock Hawaii's Crypto Potential with Bitcoin's Record High

Bitcoin's Adoption in Hawaii

Since July, when state regulations on cryptocurrency companies were eased, Bitcoin has been adopted more widely in the state. Drip Studio HNL in Fort Street Mall in downtown Honolulu is one of the few businesses that accepts Bitcoin and has become a de facto hub for the unregulated local cryptocurrency industry. Co-owner Vincent Pohaku expressed his enthusiasm for the concept and ideas behind Bitcoin.This increased adoption is not only seen in businesses but also in other sectors. Schools and nonprofits, for example, have started accepting cryptocurrency for donations. Mid-Pacific Institute recently changed its policy to allow a donor to make a $200,000 gift. Shannon Cleary, Vice President of Institutional Advancement at Mid-Pacific, emphasized their goal of making giving convenient for donors and creating avenues for those who prefer cryptocurrency donations.

The Benefits of Bitcoin

Local think tank Grassroot Institute has urged the state to stop requiring digital currency companies to have a money transmitter license. Under the "double reserve" rule, companies had to hold cash assets equal to their digital assets. However, advocates argue that Bitcoin offers economic freedom and a way to hedge against inflation. Joe Kent, EVP at Grassroot, pointed out that with the cost of living rising continuously due to government printing of money, Bitcoin stands out as a more stable source of value. The supply of Bitcoin is capped, which makes it a reliable alternative."It's a money made by people for people," Kent said. "Finally, we have a competition for a better currency, and hopefully, it can help people get ahead of inflation."

The Risks of Bitcoin

Despite the potential benefits, critics warn that the cryptocurrency industry is rife with fraud. Investors have no protection or recourse if they lose money, and crypto prices can rise and fall drastically due to speculation. Economist Paul Brewbaker even calls crypto a medium of exchange for criminal activity.However, schools and nonprofits have implemented protections to prevent fraud when accepting cryptocurrency donations. This shows that with proper measures in place, cryptocurrency can be used safely in certain contexts.

Investor Considerations

While some may hold onto Bitcoin as an investment, others may choose to cash out to protect themselves from volatility. Kent advises first-time investors to be cautious and do their research. "Buyer beware," he said.As the incoming Trump administration pushes digital currency into the mainstream and Bitcoin reaches record highs, consumers are urged to consult with financial advisors. This ensures that they make informed decisions and understand the risks and benefits associated with Bitcoin.Copyright 2024 Hawaii News Now. All rights reserved.