THIS is with reference to the report ‘Bitcoin at record high, sets sights on $100,000’ (Nov 23), which, among other things, pointed out that the cryptocurrency brand had more than doubled its value since Donald Trump’s sweeping victory on Nov 5, and the election of a slew of pro-crypto lawmakers to the United States Congress. It will be a folly not to keep an eye on such happenings.

The world is witnessing another technological advancement in the shape of blockchain and cryptocurrencies. They have transformed the exchange of value just as the internet has transformed the exchange of information. All this is evident from the recent surge in Bitcoin value, especially because of Trump’s pro-crypto stance.

Many believe that the US may even make Bitcoin its reserve currency. Lobbying to that effect has already started in the US. If that happens, experts believe the US may end up buying about a million Bitcoins and holding them for a couple of decades. This will definitely have an impact on the global economy.

Some countries have already adopted Bitcoin as a legal tender and big investment firms have invested heavily in Bitcoin after approval by the Exchange-Traded Fund (ETF), which is a com-ponent of the US Securities and Exchange Commission (SEC). According to analysts, the value of a single Bitcoin may hit the million-dollar mark within six years.

In this backdrop, it is quite apparent that the actual power players in the future will be the countries and institutions that hold a greater share of the 21 million Bitcoins in circulation.

These developments should be observed closely by the relevant stakeholders in Pakistan so that a future government strategy may be devised that could resonate with the realities of the decentralised digital future to avoid potential stagnation.

Shakeel Ahmad
Bajaur

Published in Dawn, December 1st, 2024