Daily Star reports on Bitcoin’s surge above $100,000

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JIMMY MOYAHA: Today marks a momentous occasion for crypto enthusiasts, as Bitcoin has soared to a staggering US$100,000 per bitcoin. We’ll explore what this milestone signifies for the overall crypto market, and those who doubt the viability of cryptocurrencies will certainly have to reconsider their stance.

Read: Bitcoin exceeds $100,000 on Trump’s pro-crypto pick for the SEC

I have with me Carel van Wyk, the founder of MoneyBadger, to delve deeper into this topic. Good evening, Carel. It’s a pleasure to connect with you. Today’s achievement is not just significant for Bitcoin but for the entire crypto arena. Did you recognize how impactful this moment is, particularly from a South African perspective?

CAREL VAN WYK: Absolutely. Whenever there’s a surge in price, we typically witness a spike in trading volumes. Exceeding $100,000 is undeniably substantial. Today, on a single exchange in South Africa, we observed over half a billion rand traded. And that’s just a fraction of the overall activity in the country.

Globally, the trading volume is around a hundred billion dollars in the past 24 hours, and we expect that figure to rise in the coming hours.

JIMMY MOYAHA: That’s an extraordinary figure. Carel, how does this development influence the crypto landscape? As Bitcoin is the frontrunner, being one of the pioneering cryptocurrencies, should we anticipate that other coins will capitalize on this upward momentum? Historically, we’ve seen Bitcoin lead the market, followed by a surge in altcoins.

Are we witnessing heightened interest in alternative cryptocurrencies at this juncture? Should we expect a broader upswing? December usually proves to be a robust month for cryptocurrencies – at least it has been in the past.

CAREL VAN WYK: Indeed, there’s often a strong correlation between Bitcoin’s price movements and those of other cryptocurrencies. However, if we look at the long-term, it becomes apparent that there’s really only one dominant player, and that’s Bitcoin—other coins tend to depreciate in value compared to Bitcoin.

Regardless of whether the prices of those altcoins rise or fall in dollar terms, they tend to lose value when assessed against Bitcoin over extended periods.

JIMMY MOYAHA: The introduction of institutional investors and events like the approval of Bitcoin ETFs by the SEC have undeniably affected Bitcoin’s price volatility. Looking ahead at Bitcoin’s trajectory and the future of cryptocurrencies as a whole, it’s clear that cryptocurrencies are not going anywhere. Bitcoin remains the leader. Are we beginning to see a trend where investors might shift from traditional asset classes to consider Bitcoin more seriously? Is there an uptick in interest in this regard?

CAREL VAN WYK: That’s a nuanced question. Whether Bitcoin is now regarded as a legitimate asset class can vary depending on opinion. However, strategically considering a small percentage of your net worth in Bitcoin might not be a poor idea.

Ultimately, if you allocate even a modest portion to Bitcoin over time, it’s likely to become a significant part of your portfolio.

We may already be witnessing a scenario where significant political events are influenced by Bitcoin’s price movements. Over the past three years, we’ve seen countries adopt Bitcoin as legal tender. As you mentioned, the emergence of major ETFs has marked a significant shift, and we can anticipate even more pivotal developments tied to Bitcoin’s rising price in the future.

JIMMY MOYAHA: You noted the growing adoption of cryptocurrencies by nations, with El Salvador stepping forward to recognize Bitcoin as official legal tender. This clearly signifies a market for Bitcoin, no matter your perspective.

Carel, regarding the broader crypto ecosystem, we’ve seen discussions intensifying around utilizing blockchain technology in various sectors. As an advocate of blockchain and Bitcoin, do you believe that the current momentum surrounding Bitcoin could transition into broader applications within the crypto and blockchain domains?

CAREL VAN WYK: I tend to remain skeptical about claims that blockchain is the panacea for all challenges. In many instances, a straightforward database could suffice.

Legitimately, there are only a handful of use cases that genuinely necessitate a blockchain.

Often, blockchains are costly, slow, and complex to maintain. When true use cases emerge, they typically demand high trust; Bitcoin fits this criterion as a form of currency requiring significant trust. However, in the majority of other cases I’ve encountered during my decade in the industry, many touting blockchain are essentially selling smoke. Evaluating projects and tracking their survival over the last five-plus years can reveal the genuine applications.

JIMMY MOYAHA: Carel, considering the future of cryptocurrencies as we approach 2025, are you optimistic that Bitcoin’s current momentum will sustain? Are we targeting $150,000 as a potential marker? Have you analyzed any data? Naturally, with all-time highs, it’s challenging to predict how much higher we might reach from here.

CAREL VAN WYK: Fundamentally, it’s essential to determine whether you view Bitcoin as a scarce commodity. If you believe Bitcoin is scarce—whether in terms of digital versus physical scarcity—then, as long as more dollars are printed globally, Bitcoin’s price should likely continue rising in dollar terms.

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

JIMMY MOYAHA: The US certainly doesn’t shy away from dollar printing; they do it quite frequently.

We’ll conclude the discussion there. Carel, thank you for sharing your insights. That’s Carel Van Wyk, the founder of MoneyBadger, who joined us today to analyze Bitcoin’s significant milestone and the state of the crypto landscape.

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