Bitcoin Hits $99,000: A Predictable Milestone in the Halving Cycle
A technological lifeline is steadily rising amidst the collapse of sinking economic systems.
Bitcoin has reached an all-time high of over $99,000 USD, a milestone that comes as no surprise to those familiar with its algorithmic halving cycle. I can’t help but think of my long “I told you so” list—friends, family, and critics, many of whom sold their Bitcoin during the dip of 2022-2023, between the 2020 and 2024 Halvings.
This surge is driven by two main factors. First, Bitcoin’s deflationary nature makes it increasingly scarce over time. The Halving, a process in which the amount of new Bitcoin entering circulation through the Proof of Work mining protocol is cut in half, ensures this scarcity. Second, the devaluation of fiat currencies through hyperinflation has made Bitcoin’s limited supply even more appealing. Decades of reckless money printing have undermined trust in fiat currencies, which are backed only by faith in their value.
But is Bitcoin truly rising in value, or are we simply watching the dollar sink? Comparing Bitcoin to fiat currencies is like measuring against a sinking ship. A better benchmark is gold—a timeless and universal standard of stability.
While this rise may seem almost magical—or too good to be true—it is by design. Bitcoin’s features set it apart from fiat currencies. Its limited supply of 21 million coins makes it scarcer than gold, and the decreasing issuance of new Bitcoin ensures its deflationary nature. Unlike fiat currencies, which are continuously inflated, Bitcoin becomes more valuable over time as its supply diminishes.
However, I predict this deflationary effect will level off over the next decade. As the remaining Bitcoin is mined and enters circulation, the impact of the halving cycle will diminish. At that point, Bitcoin is likely to take on a role similar to gold—a stable store of value rather than a speculative investment. From this position, Bitcoin could gain broader adoption as a medium of exchange, offering both stability and mobility while enabling sovereign wealth storage.
That said, we’re not there yet. Despite its all-time high price, we’re still early in this halving cycle.
One of Bitcoin’s most powerful features is its divisibility. Each Bitcoin can be divided into 100 million units, called Satoshis, making it accessible to small-scale investors like me. With a few hundred dollars at a time, individuals can save in Bitcoin—a life raft for the middle and working class to preserve the fruits of their labor.
Contrast this with the current banking system. In Canada, banks charge $30 per month in service fees, which easily negate the paltry 2% interest offered on savings accounts. Inflation, officially estimated at around 8% but arguably much higher, eats away at any remaining value. In essence, saving money in fiat is akin to holding an account with a significantly negative interest rate.
Bitcoin flips this dynamic on its head. Its deflationary structure rewards those who save for the long term, preserving and even growing their wealth. For me, Bitcoin’s accessibility and deflationary design are invaluable. It offers an opportunity to protect my wealth from sinking alongside today’s faltering economic systems.
Bitcoin is not just an investment—it’s a means to regain control over the value of our labor and savings. And as its adoption grows, it may well become the cornerstone of a new, more equitable financial system.
