Bitcoin Surges Past $100,000

You can also listen to this podcast on iono.fm here.

JIMMY MOYAHA: Today is a historic day for cryptocurrency fans, as Bitcoin has reached an impressive US$100,000 per coin. We’ll examine what this landmark means for the broader crypto market, and skeptics of cryptocurrencies will indeed need to reassess their viewpoints.

Read: Bitcoin surpasses $100,000 following Trump’s pro-crypto appointment to the SEC

Joining me is Carel van Wyk, founder of MoneyBadger, to discuss this topic further. Good evening, Carel. It’s great to have you here. Today’s accomplishment holds significant meaning not only for Bitcoin but for the entire cryptocurrency space. Did you anticipate the impact of this milestone, especially from a South African viewpoint?

CAREL VAN WYK: Without a doubt. Typically, a price increase triggers a rise in trading volumes. Crossing the $100,000 mark is indeed a major event. Today, on a single South African exchange, we recorded over half a billion rand in trades, and that’s merely a portion of the total activity nationwide.

Worldwide, the trading volume has approached a hundred billion dollars in the last 24 hours, and we project that this figure will continue to climb.

JIMMY MOYAHA: That’s a remarkable statistic. Carel, how does this development impact the cryptocurrency landscape? Given that Bitcoin is the leading cryptocurrency, should we expect other coins to benefit from this surge? Historically, Bitcoin has often set the trend, leading to increased interest in altcoins.

Are we observing a rise in interest in alternative cryptocurrencies at this moment? Should we brace ourselves for a broader upward trend? December has traditionally been a strong month for cryptocurrencies – at least it has been in previous years.

CAREL VAN WYK: Yes, there’s usually a close relationship between the price movements of Bitcoin and other cryptocurrencies. However, looking at the long-term picture, one major player stands out: Bitcoin. Other cryptocurrencies generally lose value in comparison to Bitcoin over time.

Whether altcoin prices rise or fall in dollar terms, they typically diminish against Bitcoin when evaluated over extended periods.

JIMMY MOYAHA: The entry of institutional investors and the approval of Bitcoin ETFs by the SEC have had a clear impact on Bitcoin’s price volatility. Looking ahead, it appears cryptocurrencies are here to stay. Bitcoin remains at the forefront. Are we starting to observe a trend where investors are shifting from traditional assets to view Bitcoin more seriously? Is there a noticeable increase in interest in this aspect?

CAREL VAN WYK: This is a complex question. Whether Bitcoin is recognized as a legitimate asset class may depend on individual perspectives. Nevertheless, considering a small percentage of your net worth in Bitcoin could be a wise strategy.

If you strategically allocate even a minor portion to Bitcoin over time, it has the potential to evolve into a significant asset in your portfolio.

We may already be witnessing a situation where major political occurrences are swayed by Bitcoin price fluctuations. Over the past three years, several countries have embraced Bitcoin as legal tender. As you noted, the rise of significant ETFs indicates a substantial change, and we can anticipate additional major developments linked to Bitcoin’s increasing value in the future.

JIMMY MOYAHA: You mentioned the rising acceptance of cryptocurrencies among nations, with El Salvador taking the lead by adopting Bitcoin as legal currency. This clearly indicates a market for Bitcoin, regardless of one’s viewpoint.

Carel, pertaining to the wider crypto ecosystem, there has been a surge in discussions about leveraging blockchain technology across various sectors. As an advocate for blockchain and Bitcoin, do you think the current enthusiasm for Bitcoin could translate into broader applications in the crypto and blockchain sectors?

CAREL VAN WYK: I remain skeptical about claims that blockchain is the solution to all problems. Often, a simple database would be sufficient.

Truly, there are only a few use cases that genuinely require a blockchain.

In many cases, blockchains are expensive, slow, and complicated to maintain. When real use cases emerge, they generally demand high trust; Bitcoin fits this need as a currency that requires considerable trust. However, in many projects I have encountered over my decade in the industry, those promoting blockchain often lack substantial advantages. Analyzing projects and tracking their viability over the past five years often reveals their true applications.

JIMMY MOYAHA: As we look ahead to the future of cryptocurrencies leading up to 2025, do you feel confident that Bitcoin’s current momentum will continue? Are we aiming for $150,000 as a potential target? Have you looked into any data? Naturally, with all-time highs, it’s tough to predict how much higher we might go from here.

CAREL VAN WYK: Fundamentally, one must gauge if they view Bitcoin as a scarce commodity. If you consider Bitcoin scarce—whether through a digital or physical lens—then, with the continued printing of dollars globally, Bitcoin’s price should likely keep increasing in dollar value.

Read: Crypto trading volume skyrocketed to $10 trillion for the first time in November

JIMMY MOYAHA: The U.S. certainly doesn’t hesitate to print dollars; it’s a frequent occurrence.

We’ll wrap up our discussion here. Carel, thank you for your insights. That was Carel Van Wyk, founder of MoneyBadger, who shared his perspectives on Bitcoin’s remarkable milestone and the state of the cryptocurrency landscape.

Stay informed with Moneyweb’s comprehensive finance and business news on WhatsApp here.