In the current year, Bitcoin has seen a substantial surge of nearly 150%, reaching a two-year high of almost $45,000, compared to the starting figure of $16,600. This rise has occurred despite challenges faced by the cryptocurrency sector, including regulatory pressure and legal allegations against prominent figures such as Changpeng Zhao and Sam Bankman-Fried, founders of the world’s largest cryptocurrency exchanges, for financial crimes and fraud.

The Indestructible Nature of Cryptocurrency

The resilience of cryptocurrencies is attributed to the indestructible nature of their underlying technology, blockchains, which cannot break or be shut down, and are maintained by a decentralized network of computers incentivized by the issuance of new tokens.

Continued Adoption and Growth

Cryptocurrency adoption continues to expand, with its use in countries under authoritarian regimes and the creation and collection of non-fungible tokens (NFTs) by artists and museums. Additionally, the industry continues to attract smart developers working on new applications, such as social networks and games.

Strengthening of Bitcoin as an Investment Asset

Bitcoin’s stability as an investment asset has also been strengthened by a US court decision ordering the SEC to reconsider converting a Grayscale investment fund into an ETF, which could make Bitcoin investment easier for the average customer. Major investment funds like BlackRock and Fidelity have shown interest in launching cryptocurrency ETFs.

This recognition and the diversification that Bitcoin offers compared to other assets could lead to a significant inflow of investments into cryptocurrencies, as investors seek to diversify their portfolios.