The Surge of BTC and Meme Coins in 2024: A Newcomer’s Perspective

Bitcoin and a series of other cryptocurrencies

Hello, everyone! This is my first post, and I want to share my thoughts on a topic that’s been on my mind lately: the resurgence of cryptocurrencies, particularly Bitcoin (BTC) and meme coins.

I’ve been on the sidelines of the crypto world since 2020, dabbling in major altcoins on centralized exchanges like Tokenize and Coinbase, but with little success. To be honest, I never fully grasped the real-world utility of most tokens on the blockchain. For me, they mainly served as high-risk hedges — just small pieces of my broader investment portfolio.

But in 2023/24, the landscape shifted. The approval of Bitcoin and Ethereum ETFs grabbed global attention, and the crypto world began to feel like it was back in the spotlight. Governments, financial institutions, and retail traders were all watching closely. It almost felt like the digital equivalent of the California Gold Rush from the 1800s, but this time, it was happening in the wild west of decentralized finance (DeFi).

In Singapore, one of the largest banks, DBS, began offering cryptocurrency services to investors. Grabs users could top up their wallets for spending with crypto. Even local hawker stalls, like Lor Mee 178 at Tiong Bahru Market, began accepting USDC — a USD-pegged cryptocurrency. Cryptocurrencies have already started to subtly infiltrate everyday life. Once viewed as a speculative asset class, they are now moving toward real-world utility.

TL;DR: Like it or not, cryptocurrencies are here to stay. It’s up to us to learn about them now — or risk being forced to learn about them in the future.

A few key catalysts have driven Bitcoin’s surge in early 2024. These include the speculation around the BTC ETF, the Bitcoin halving event, September rate cuts, and the November 2024 US presidential election.

For those who aren’t aware, the newly elected President of the United States has shown strong pro-crypto support. He has pledged to make the US the “crypto capital” and has even promised to fire the US SEC Chairman, Gary Gensler, who has been known for his crackdown on the crypto industry. Following the election of this pro-crypto president, Bitcoin surged to an all-time high of $76k.

This news caused a ripple effect across the entire crypto market, with meme coins seeing a dramatic rise in the 24 hours following the election.

MEME coin strength 24h post-election compared to other narratives. Retrieved from DYOR.ag

The narrative surrounding Bitcoin has often been framed as “digital gold.” Its supply is capped, and its code, written by Satoshi Nakamoto in 2009, remains immutable. This simplicity is one of its biggest strengths.

To understand why Bitcoin is so appealing, it’s important to look at the broader context of inflation and fiat currencies. Inflation occurs when governments print more money, which dilutes the value of currency. For instance, during times of recession, central banks, like the US Federal Reserve, often engage in quantitative easing to stimulate economic activity by increasing the money supply. However, while these measures may help in the short term, they also contribute to long-term inflation, decreasing the purchasing power of fiat money.

The illustration below shows the dramatic increase in the US money supply from the 1960s to 2024:

Taken from https://fred.stlouisfed.org/series/M2SL

Given this inflationary trend, holding fiat currency may not be the best option, especially during recessions.

This is where Bitcoin stands apart. Unlike fiat currencies, Bitcoin’s supply is limited and predetermined by its code. Its main appeal lies in its ability to serve as a store of value — unlike the constant devaluation of fiat currencies, Bitcoin’s scarcity gives it a unique position in the digital age. Another major advantage is the ease of global transactions, which can be completed with the click of a button.

With its large market cap and growing institutional adoption (BlackRock and VanEck, for example, now offer Bitcoin ETFs), it’s no surprise that Bitcoin is the entry point for many newcomers into the crypto space.

Pepe the frog

Now, let’s talk about meme coins — the other star of this surge in 2024. Meme coins are often seen as having no real utility and are typically classified as high-risk, speculative assets. They usually carry the branding of internet memes or humorous themes, making them appealing to a wide audience looking for a fun and easy entry into the crypto world.

What makes meme coins particularly intriguing is their potential for outsized returns. While they’re risky, with low market caps and little fundamental value, the possibility of a “100x” return on investment often attracts retail traders, especially those with a “get rich quick” mentality. Compared to more complex crypto narratives like AI, DePin, GameFi, Layer 1 and Layer 2 solutions, or decentralized finance (DeFi), meme coins are easy to understand, and the stakes seem clearer — bet on the meme, hope for the next big surge.

As a result, meme coins often see dramatic price movements, especially when there’s positive sentiment around the cryptocurrency market. When the broader crypto market pumps, meme coins are often among the first to surge, thanks to their speculative nature and their appeal to new investors.

With Bitcoin’s established narrative as a store of value and meme coins offering high-reward speculation, both are playing key roles in driving the crypto market forward. For newcomers, Bitcoin is the more stable and understandable entry point, while meme coins offer the thrill of speculation.

In conclusion, cryptocurrencies, whether it’s Bitcoin or meme coins, have already begun to permeate our society. They are no longer just speculative investments — they’re moving towards real-world use cases, from payments to store of value and more. So, whether you’re a seasoned investor or a newcomer like me, it’s essential to understand these dynamics. The crypto world is evolving rapidly, and it’s up to us to keep up or risk being left behind.

The Surge of BTC and Meme Coins in 2024: A Newcomer’s Perspective was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.