Bitcoin in the USA: History, Impact, and Expert Opinions

History and Trajectory of Bitcoin

Bitcoin was created by a person (or group) under the pseudonym Satoshi Nakamoto, who published a white paper in 2008 describing the decentralized digital currency based on blockchain technology. In 2009, the network was launched, and the first transaction took place between Nakamoto and programmer Hal Finney.

Over the years, Bitcoin evolved from a technological curiosity to a highly valuable asset. In 2010, the famous transaction where 10,000 bitcoins were used to buy two pizzas highlighted its potential as a currency. Since then, its price has surged from mere cents to over $60,000 at certain points in history.

Bitcoin Technology and Mining Process

Bitcoin operates on blockchain technology, a decentralized digital ledger that securely and immutably records all transactions. This technology is supported by a process called Proof-of-Work (PoW), which ensures network integrity and prevents fraud.

Bitcoin Mining

Bitcoin mining is the process by which new coins are created and transactions are validated on the network. Specialized computers called miners solve complex mathematical problems. The process works as follows:

1. Transaction Grouping: Pending transactions are grouped into blocks.

2. Solving Cryptographic Calculations: Miners compete to solve a mathematical problem using computing power.

3. Block Validation: The first miner to solve the problem validates the block and adds it to the blockchain.

4. Reward System: The winning miner receives a Bitcoin reward along with transaction fees included in the block.

Mining requires substantial computing power and consumes enormous amounts of energy, sparking debates over its environmental impact. Alternatives such as Proof-of-Stake (PoS) are being explored to make the process more efficient and sustainable.

What Do Experts, Politicians, and Celebrities in the U.S. Say?

Bitcoin sparks divided opinions among influential figures in the United States. While some see it as the future of money, others consider it a speculative bubble or a tool for illegal activities.

Financial and Technology Experts

• Elon Musk (CEO of Tesla and SpaceX) – Although Tesla has invested billions in Bitcoin, Musk’s opinions are volatile, often influencing its price with tweets and public statements.

• Warren Buffett (Billionaire Investor) – Called Bitcoin "rat poison squared," arguing that it generates no real value and is purely speculative.

• Jack Dorsey (Co-founder of Twitter and CEO of Block) – A strong advocate who believes Bitcoin could become the currency of the internet.

• Cathie Wood (Founder of Ark Invest) – Predicts Bitcoin could reach $500,000 in the long run, driven by institutional adoption.

American Politicians

• Senator Ted Cruz – Supports Bitcoin as a tool for financial freedom and opposes government interference.

• Senator Elizabeth Warren – A fierce critic, claiming that it facilitates financial crimes and harms the environment due to mining’s high energy consumption.

• Donald Trump – Called Bitcoin a "fraud" during his presidency, asserting that the U.S. dollar should remain the only global currency.

• Joe Biden – His administration has pushed for stricter cryptocurrency regulations, including increased oversight to prevent money laundering.

Celebrities and Influencers

• Snoop Dogg – Among the first artists to accept Bitcoin payments for music.

• Mike Tyson – Launched a line of Bitcoin ATMs and supported its popularization.

• Paris Hilton – A passionate investor who believes cryptocurrencies can revolutionize finance.

• Kim Kardashian – Fined for promoting a token without disclosing she was paid for it, highlighting the risks of misleading crypto promotions.

Who Got Rich and Who Lost Everything?

Success Stories

• The Winklevoss Twins – Invested in Bitcoin in 2013 and became billionaires.

• Michael Saylor (CEO of MicroStrategy) – Transformed his company into one of the largest Bitcoin holders globally.

• Erik Finman – Bought Bitcoin at age 12 and became a millionaire before turning 20.

Major Losses

• James Howells – Threw away a hard drive containing 8,000 bitcoins, now worth hundreds of millions of dollars.

• 2021 Investors – Many entered the market during the peak, buying Bitcoin above $60,000, only to lose much of their capital when prices dropped below $20,000.

Bitcoin’s Impact on the Economy and Future Challenges

Bitcoin has the potential to impact the economy in several ways:

• Financial Decentralization – Enables global transactions without intermediaries, challenging traditional banks.

• Regulation – The U.S. government is debating how to regulate the sector without stifling innovation.

• Volatility – Extreme price fluctuations hinder its broader use as an everyday currency.

• Environmental Impact – Bitcoin mining consumes as much energy as some entire countries, raising environmental concerns.

• Security and Crime – The use of Bitcoin for illicit activities and financial scams worries regulators.

The Future of Bitcoin in the U.S.

The future of Bitcoin in the United States depends on factors such as regulation, institutional adoption, and technological evolution. If it can overcome its current challenges, it could establish itself as a global financial asset. Otherwise, it may lose ground to new innovations in the crypto sector.

The debate over Bitcoin is far from over, but one thing is certain: it has fundamentally changed the way we think about money and digital transactions.