After a turbulent year, Bitcoin, the world’s most famous cryptocurrency, is experiencing a significant surge in value.
Following months of decline, the recent price spike has prompted questions about whether this rise will last and the risks involved.
Can the current surge continue?
On today’s episode of The Briefing, we sit down with Bryce Leske from Equity Mates Media and Dr Cynthia Cai, Macquarie University finance senior lecturer. They explain what’s driving the current crypto market and offer insights for investors.
Experts attribute this surge to Bitcoin’s four-year halving cycle, a well-known event that reduces the reward for mining Bitcoin.
“Bitcoin itself is just a digital record, the record of money. It doesn’t have any physical forms. It’s not like gold. It’s a lot like the paper bills that are being backed up by the government,” Dr Cai said.
Mr Leske said Bitcoin’s halving event occurs every four years, and we are currently at the two-year mark of the latest cycle.
“It’s all based on what they call this halving event, where every four years…It’s harder to mine bitcoin. And so that put some pressure on the supply,” he said.
This supply pressure often leads to higher prices, a pattern that has played out in previous cycles.
For many potential investors, the recent rise in Bitcoin’s value may feel like a missed opportunity.
Some are asking if they’ve missed the boat, while others wonder if it’s still worth investing.
Mr Leske also shared the story of a friend who bought a full Bitcoin for just $100, sold it when it hit $120, and later regretted the decision as Bitcoin’s value soared.
“He looks back on that moment and can’t believe what he did.”
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