"Never sell your Bitcoins," Trump said at the Bitcoin 2024 conference in Nashville this weekend, providing the currency circle with the latest news in recent times. Strong emotional value.
During Trump’s speech, Bitcoin staged a V-shaped trend. First, it fell short-term, losing $67,000; at the end of the speech, when he announced that Bitcoin would When Bitcoin was listed as a strategic reserve asset, Bitcoin skyrocketed, recovering all its losses and even exceeding US$69,000.
During his previous term as president, Trump had harshly criticized cryptocurrencies, calling them a "scam." Now, he even bluntly stated at the Bitcoin Conference that "Bitcoin has become the ninth-largest asset in the world by market capitalization and will soon surpass silver and gold in the future."
Such a big change shows that cryptocurrency users have begun to become a growing political force.
From "Internet scam" to "politician's lobbying handle", ten years have passed. Why has Bitcoin turned around?
Not only Trump, but Mike Novogratz, CEO of asset management company Galaxy Digital, also publicly stated, “Although Bitcoin’s current market value is less than one-tenth of gold, it It is rising rapidly and will definitely exceed the market value of gold, and it won’t be long. Michael Saylor, CEO of MicroStrategy, also holds a similar view. “Digital gold” will replace physical gold by the end of the century.
Have you ever thought about why so many world-class masters make no secret of their belief in Bitcoin? Is it a fantasy, or is it justified?
First of all, you need to know, why is Bitcoin similar to gold?
Scarcity. The total number of Bitcoins is fixed at 21 million, and it is expected that all Bitcoins will be mined by 2140. This limited supply gives Bitcoin a scarcity similar to gold.
Inflation resistance. Bitcoin, as “digital gold”, is considered an effective inflation hedge. Although Bitcoin has only been around for about ten years and has only experienced the test of inflation during the COVID-19 epidemic, its unique algorithm and distributed system give it the ability to withstand inflation. JPMorgan research shows that institutional investors are increasingly choosing Bitcoin over gold as a safe-haven asset.
Actual value. Gold’s value comes from its wide range of uses in areas such as luxury goods and electronics. The value of Bitcoin comes from its innovation in the monetary system. Its encryption technology and distributed network enable billions of people around the world who have not entered the banking system to enter the financial system.
Since both assets are so popular, what is Bitcoin? The real reason why gold is better than gold?
The answer is return performance and supply, Bitcoin has enjoyed nearly 120% annual returns over the past decade, compared to gold’s annual returns The rate is only 2%. Unlike gold, Bitcoin’s supply is clearly capped, ensuring its inherent scarcity.
Gold has always been a symbol of value storage and wealth preservation. But at the end of the decades of inflation that began in the 1970s, gold's performance began to be relatively bleak.
From 1980 to the end of 2023, gold’s inflation-adjusted total return was -4%. Over the past decade, gold's annual return has been just 2%.
In addition, the supply of gold is also difficult to control, with mining and new discoveries making its quantity uncertain. Even historically, the United States has confiscated gold through Executive Order 6102, which is a vulnerability of gold to government intervention.
However, Bitcoin is emerging with unparalleled advantages. As the world's first cryptocurrency, Bitcoin not only has strict supply restrictions, the total supply is fixed at 21 million, and no one can change its supply to ensure its scarcity.
In the past ten years, Bitcoin's annual return has been as high as 120%, an astonishing figure that far exceeds that of gold. Not only that, Bitcoin is based on the global blockchain network and cannot be tampered with or confiscated, providing investors with an unprecedented sense of security.
As the market matures, Bitcoin's volatility is gradually weakening, bringing more stable opportunities to long-term investors.
More importantly, Bitcoin gives holders true financial sovereignty, is free from currency manipulation, and perfectly adapts to the needs of the digital age.
So, Bitcoin appeared on the scene and became the value reserve in the new era!
Going back to what was mentioned earlier, Trump mentioned at this conference that Bitcoin would be listed as a strategic reserve asset, which directly pushed the price of Bitcoin to climb above $69,000.
The original words are as follows: "If I are elected, my government policy will be that the United States will retain 100 of all Bitcoins currently held or acquired in the future. %. We will retain 100%. I hope you do well. This will actually serve as the core of the strategic national Bitcoin reserve." Conservative, but it certainly highlights the importance of Bitcoin as a global financial asset. Trump has also been an outspoken critic of the Biden administration's crackdown on cryptocurrencies, saying such policies are damaging to the U.S. economy.
In contrast to Trump's caution, independent presidential candidate Robert F. Kennedy Jr. has presented a more radical vision.
He promised that if elected, he would launch an ambitious Bitcoin reserve plan-buying 550 Bitcoins every day until the reserve reaches 4 million. The proposal is far bolder than Trump’s plan and aims to turn Bitcoin into a strategic national asset.
In Wyoming, Senator Cynthia Loomis is also actively promoting a national reserve plan for Bitcoin. She plans to draft a bill that would require the government to build a reserve of up to 1 million bitcoins within five years and use it solely to reduce the national debt over the next 20 years.
This plan undoubtedly further strengthens Bitcoin's status as a long-term financial asset.
The above public statements have quickly pushed Bitcoin into a hot topic in the global financial and political fields. We all know that national governments may own Bitcoin as reserve assets. For example, the U.S. government is one of the largest holders of Bitcoin. The federal government owns nearly 210,000 Bitcoins, accounting for 1% of the total supply. %.
In 2021, El Salvador announced Bitcoin as its official currency anchor, becoming the first country to use BTC as a legal currency. In addition, Switzerland has also passed legislation to include Bitcoin in its national bank reserves.
So, what does this mean?
Looking at a set of data, according to VanEck’s report hypothesis, as geopolitical tensions and debt repayment costs put pressure on the existing system, Bitcoin The currency may become an important part of the international monetary system in the coming decades.
The report predicts that Bitcoin’s global reserve asset status will gradually increase, and its proportion in international foreign exchange reserves is expected to reach 2.5%.
In this way, it can be seen that Bitcoin is gradually transforming from an emerging asset to an important component of the global financial system. Whether in the United States or in international markets, Bitcoin's status is rising rapidly.
Therefore, Hong Kong is not to be outdone.
Fang Hongjin, co-chairman of the Hong Kong Blockchain Association, recently suggested that the Hong Kong government should use the anti-inflation properties of Bitcoin to diversify the asset allocation of the Exchange Fund to To reduce reliance on the U.S. dollar, Bitcoin should continue to be purchased and held as part of foreign exchange reserves.
He believes that Bitcoin not only has the potential to surpass gold, but also significantly enhance Hong Kong's influence in the global financial market.
Hong Kong Legislative Council member Wu Jiezhuang also expressed support for this trend when expressing his views on Trump's speech at the US Bitcoin Summit.
He believes that Bitcoin and Web3 are key nodes in the development of globalization. In the future, Bitcoin can be included in official financial reserves in compliance with regulations.
He also emphasized that Hong Kong should speed up the construction of the Web3 ecosystem to attract the world's top talents and investment.
Hong Kong is following closely and actively exploring the possibility of incorporating Bitcoin into its foreign exchange reserves. All this shows us that Bitcoin may become an important part of the global financial system. key pillars.
From the United States to Hong Kong, more and more governments and financial institutions are paying attention to the unique advantages of Bitcoin.
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Summary
In a world that is increasingly digitized and fiat currencies are devaluing, Bitcoin is gaining ground due to its scarcity, high yields and financial sovereignty. Gradually replacing gold and becoming the value reserve of choice for the new generation.
It is expected that in the next few years, this trend will promote the further rise of Bitcoin in the international market.
If the current drop of Bitcoin from 60,000 to 50,000 makes you sleepy, then tell a horror story: if it reaches the market value of gold, one Bitcoin The price of the coin could surge from the current $69,000 to nearly $600,000.
At that time, you may be able to appreciate the weight of the sentence "Never sell your Bitcoins."
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