BUFFALO, N.Y. — In the past decade or so, digital cryptocurrency like Bitcoin, has gone from a technological novelty to an industry with a multitrillion-dollar global market.

BronxCrypto Founder Julio Barrios said many people don’t understand the industry so several years ago he started an educational platform.

“I go in and I host classes and seminars, workshops,” Barrios said. “I host free workshops at libraries all over the Bronx.”

He said the industry has been marred by misunderstanding and bad actors that have led to government leaders approaching it cautiously. 

“That happens to all technologies,” Barrios said. “In the beginning it’s used by criminals. It’s used by people trying to do illegal things and then all of a sudden when people see the potential of like the blockchain, that’s when people get on board.”

Tech industry coalition Chamber of Progress’ Director of Financial Policy Kyle Bligen said the Biden administration has been generally hostile toward crypto, but Democratic presidential nominee Kamala Harris may be changing that.

“We’ve seen a little bit of a tone shift here in recent reporting saying that her surrogates and her close advisors are actually reaching out to industry, trying to ensure that she has a comprehensive understanding of what  cryptocurrency, blockchain technology is and how she can better work with industry in the future,” he said.

Meanwhile, Republican nominee Donald Trump is beginning to make crypto a key component of his campaign. Over the weekend, he spoke at a Bitcoin conference in Nashville, laying out several specific policy plans including creating a strategic reserve similar to what the government has for petroleum. 

“The actual mechanics of that, how that would come to fruition and what the benefit would be for the actual marketplace, that still needs to be bore out but that was the first time that I have ever seen someone on the level of a presidential candidate or someone in the administration ever calling for that type of policy,” Bligen said.

Chamber of Progress said while Republicans, by way of Trump, are embracing the industry they hope Democrats will join in creating a bipartisan regulatory plan. U.S. Sen. Kirsten Gillibrand is one of the party’s leaders on the issue.

“If we want to make the market safe for Americans to participate in, we need basic transparency, accountability, know your customer rules, anti-money laundering rules, safety and soundness rules and I’ve written legislation to provide exactly that,” Gillibrand said.

She said regulating crypto and promoting American innovation should not be partisan. 

“I think cryptocurrency and blockchain isn’t a top five issue for most New Yorkers or most Americans and so our elected leaders haven’t really had the experts within their staff to give them guidance about what regulation is needed,” Gillibrand said.

Chamber of Progress said polling shows pro-crypto voters may prioritize the issue over others in choosing a candidate. Barrios said there needs to be an all hands-on deck approach.

“America has to see this,” Barrios said. “They have to wake up. We cannot let China control most of this Bitcoin mine.”

The organization said more than 20 million Americans either buy, trade or sell cryptocurrency and reference polling claiming more than 52% of Americans nationwide support the technology. 

Bitcoin‘s (BTC -0.79%) earliest investors, particularly those who have been able to hold on through the wild volatility, are probably rich beyond their wildest dreams. The monster gains have continued in recent times, with this top digital asset rising 594% just in the last five years, a much better gain than the Nasdaq Composite index.

Bitcoin is trading just 10% off its peak price, and I still believe it’s the ultimate cryptocurrency to buy with $1,000. Here are three reasons why.

Fixed supply cap

Perhaps Bitcoin’s defining characteristic is its fixed supply cap: There always will be only 21 million coins in circulation. This limit is etched into the Bitcoin source code, and unless the majority of nodes approve a change, it will stay this way. For what it’s worth, I don’t see the hard cap ever being altered because if it did change, it would undermine the value of the entire network.

Bitcoin’s fixed supply is precisely what makes it stand out, versus fiat (government-backed) currencies, such as the U.S. dollar. The Federal Reserve, our central bank, has immense power when it comes to controlling the money supply. Historically, the number of dollars in circulation has gone up astronomically.

This setup is what makes Bitcoin superior to the current monetary network. A constantly debasing currency is troubling enough and a situation in which your dollars lose value over time. But in the U.S., the world’s most powerful economy, the debt problem is becoming too hard to ignore. As of this writing, the country has $35 trillion in outstanding debt, a figure that will only expand due to ongoing fiscal deficits.

It’s anyone’s guess if Bitcoin will one day become the new global-reserve currency. However, you can see why a decentralized and digital monetary network with absolute scarcity has tremendous value. And this warrants making a small investment.

Powerful catalysts

What’s remarkable is that Bitcoin went from an obscure internet money for tech geeks to a legitimate mainstream financial asset. This has never been more obvious than when the U.S. Securities and Exchange Commission approved Bitcoin spot exchange-traded funds (ETFs) in January 2024.

The launch of these spot ETFs can also be viewed as a stamp of approval, one that shows that Bitcoin has arrived and should be taken seriously by leaders on Wall Street and in Washington.

Bitcoin is also becoming a popular political campaigning tool. For example, during the Bitcoin 2024 Conference, which is happening right now in Nashville, former President (and 2024 candidate) Donald Trump is the keynote speaker. It’s difficult to envision a winning president who doesn’t embrace Bitcoin, given that it may be able to attract voters.

Another recent catalyst was the April halving, which reduced Bitcoin’s new supply rate by half. This event happens about every four years and is exactly what enforces the crypto’s fixed supply cap of 21 million coins. Historically, its price has soared in the year-and-a-half after a halving has occurred.

Return potential

Businesses that sell products and services to customers generate revenue and profits. Bitcoin, of course, isn’t set up in the same way. That makes it hard to figure out what its value should be.

Bitcoin is often viewed as a digital version of gold. But I’ve argued before how this cryptocurrency is superior to the precious metal. Gold has a market value of $16 trillion, which is 12 times higher than Bitcoin’s $1.3 trillion. Over time, I don’t think it’s out of the question that the digital asset will match or even eclipse gold.

Therefore, even though Bitcoin has skyrocketed since its launch, it could still produce fantastic returns for investors who can buy and hold for the next 10 or 20 years. This makes it the ultimate cryptocurrency to buy with $1,000.