The Growth Dilemma and Prospects After Bitcoin Price Hits New Highs

Recently, the cryptocurrency market has experienced severe fluctuations, with Bitcoin prices oscillating widely between $94,000 and $101,000. The main reasons for this volatility are twofold:

First, Microsoft rejected the "Bitcoin Financial Proposal" put forward by a conservative think tank at its annual shareholders' meeting. The proposal suggested that Microsoft invest 1% of its total assets in Bitcoin as a hedge against inflation. Although the board had previously recommended a rejection, the market still had certain expectations for the proposal. After the proposal was officially rejected, the price of Bitcoin briefly fell to $94,000, before quickly rebounding.

This intense volatility reflects the market's anxiety about the sources of future growth after Bitcoin breaks its historical high. Currently, some leaders in the crypto industry are trying to leverage the wealth effect of a certain company to promote the strategy of allocating Bitcoin on the balance sheets of more listed companies, in order to achieve effects against inflation and performance growth.

However, it is not easy for Bitcoin to replace gold as a global store of value in the short term. The main reasons are two:

1. The value proposition of Bitcoin is top-down. Its mining relies on electricity and computational efficiency, which means that the distribution of Bitcoin will be concentrated in a few areas, hindering the spread of its value concept globally.

2. The regression of globalization trends and the challenge to the dollar hegemony. This may increase the acquisition cost of Bitcoin priced in dollars, thereby increasing the difficulty of promoting its value proposition.

These two factors will lead to high volatility in Bitcoin prices in the short term, making it more like a speculative asset rather than a stable store of value. Therefore, promoting Bitcoin as a hedge against inflation has limited appeal for large publicly traded companies.

In contrast, Bitcoin is more likely to become a new driving force for the growth of the U.S. economy. As the growth rate of the artificial intelligence sector slows down, the U.S. stock market faces downward pressure. In this context, encouraging companies to allocate Bitcoin may become a means of stabilizing the stock market. This strategy is attractive to both the government and businesses, as it can bypass monetary policy and provide new growth points for companies.

Therefore, whether Bitcoin can take over from artificial intelligence and become the core of the new round of economic rise in the United States is worth close attention. This may be a key factor in determining whether Bitcoin can achieve new value growth in the short term.