$100k Bitcoin 🚀 It's Not Just Because of Elon or Trump
Bitcoin's price moves in 4 year cycles irrespective of leadership
There’s been a lot of chatter about why Bitcoin is hitting new all-time highs. Some people think it’s because Donald Trump has shown some support for crypto, or because Elon Musk created a “Department of Government Efficiency” and named it Doge. But let me tell you, if you’re buying into these theories, you’re not digging deep enough to understand Bitcoin truly.
It’s not about hype or headlines. Bitcoin’s price movements are part of a much bigger picture - one that requires a little effort to wrap your head around. Let’s break it down.
The Basics of How Bitcoin Works
First, understanding Bitcoin starts with grasping how the blockchain works. Bitcoin isn’t just some magic internet money. It’s built on a decentralized ledger - a blockchain - where transactions are recorded in blocks.
Miners are the ones who add these blocks to the chain by solving complex cryptographic puzzles. This isn’t guesswork; it’s a computationally intensive process that ensures the network remains secure and tamper-proof.
But here’s the kicker: Bitcoin has a fixed supply—21 million coins. That’s it. No one can print more Bitcoin out of thin air, unlike fiat money (which we’ll get to in a moment).
The Broken Financial System
To really appreciate Bitcoin, you need to understand how flawed our current financial system is. Inflation, for example, is a stealth tax that eats away at the value of your money. Central banks “print money” like it’s Monopoly cash, devaluing the currency and making everything more expensive over time.
Bitcoin, on the other hand, is deflationary. Its supply is capped, and the process of releasing new Bitcoin slows down over time. That’s what makes it so revolutionary. It’s not just an investment—it’s an entirely new way of thinking about money.
The Four-Year Bitcoin Cycle
Now, let’s discuss Bitcoin’s price cycles. This part fascinates me because it’s incredibly consistent. Every four years, or after 210,000 blocks are mined, a Bitcoin halving occurs.
During a halving, the reward that miners receive for adding new blocks to the chain is cut in half. This reduces the supply of new Bitcoin entering the market, which historically drives up the price.
Right now, we’re in Bitcoin’s fourth halving cycle - or its fifth epoch, depending on how you count it. These cycles have been remarkably predictable, and if history is any indicator, this current cycle could still have a lot of room to grow.
Why Bitcoin Is Valuable
Beyond its limited supply, Bitcoin’s value comes from its unique monetary properties. It’s durable, easily verifiable, divisible, and stored in a decentralized way on the blockchain. Every transaction ever made with Bitcoin is recorded and accessible, which means no central authority can mess with the system.
And let’s not forget: there will only ever be 21 million Bitcoins. The last Bitcoin is expected to be mined in around 40 years. This scarcity is a huge part of its value proposition.
The Bottom Line
So, the next time someone tells you Bitcoin’s price is up because of a tweet or a political statement, challenge them to dig deeper.
Bitcoin’s story is about much more than hype—it’s about fixing a broken financial system and creating a decentralized future. And if you take the time to learn how it works, you’ll see why so many people believe it’s the most important financial innovation of our time.