Bitcoin is definitely one of the disruptive innovations that have made massive changes to the global financial markets. Even though it started off as an obscure virtual currency and a lot of investors felt it was a scam. But, needless to say, it proved not only that it is a viable option for making payments online, but it is equally a valuable hedge against inflation.
Today, Bitcoin is considered one of the most widely adopted cryptocurrencies that have also created space for other altcoins to exist. It is definitely the reason we have a crypto market. However, after a decade since Bitcoin was initially launched, can we expect Bitcoin to enter the mainstream market? And, what are the signs of the global adoption of Bitcoin? We answer these questions and more below.
The Safe-Haven Asset
It’s safe to say that a Bitcoin unique innovation, and no one could have predicted its trajectory. One of the signs that it has reached mainstream adoption is that it is considered a safe-haven asset in a highly restricted sense because its total number of BTC is limited to 21 million. This is one of the reasons why Bitcoin has become an asset class that is even compared to gold.
Another reason why Bitcoin reached a status of a safe-haven asset, and that’s attracted a lot of investors, is Bitcoin protocols that make this cryptocurrency unique to their crypto market. They are Bitcoin halving and another protocol that calculates the total computing power on the network, and afterwards, it adjusts the difficulty of BTC mining.
In other words, not only with BTC is has a restricted pool of tokens, but also the supply and flow of new BTC to the crypto market is regulated, and it is slowing down as the blockchain network becomes more saturated.
Another reason why Bitcoin has a supply that is increasing is Bitcoin halving which halves the number of new BTC by cutting in half the block reward of the miners, and also it simultaneously cuts in half the number of new Bitcoin tokens in the crypto market.
The Surge in Online Trading
All of this has stimulated the growth of online trading sites, so you can choose from loads of reputable exchanges. One example is BitcoinLifestyle which is an automated trading site that specializes in auto trading for users that are inexperienced in Bitcoin trading, but it is an equally great solution for experienced investors that have less time to spare on crypto trading. Thanks to the high-end technology on the platform, you can earn up to $800 on a daily basis.
As its supply is limited, and we have already mined about 80% of the total number of Bitcoin tokens, investors were paying more attention to the cryptocurrency, especially since it entered a bull market phase in 2020.
So, as Bitcoin reached a status of a safe-haven asset with the continuous growth of its price during 2020 in 2021, institutional investors started to add Bitcoin as part of their financial portfolios.
This was a great sign that Bitcoin was getting adopted by a reliable organization in the financial markets such as the Grayscale Bitcoin Trust fund or Osprey Funds and many other trust funds that were designed to make trading easier for accredited institutional investors. Also, because they are able to accumulate BTC on a larger scale, this was another factor that prompted the price growth.
Involvement of MNC’s
Adoption of a new currency in itself can be difficult. It is hard to manage and organize a change and new adoption pattern within an entire country but leading companies all around the world in technological hotspots are adopting and accepting bitcoin. This is mainly due to its recognition as being such a versatile currency that has been growing at a steady rate.
The best-known company to accept and adopt bitcoin payments is Tesla, the electric car manufacturing company founded by Elon Musk. Although he has voiced his opinion on his withdrawal of not accepting bitcoin due to its repercussions of use on nature, Tesla has been accepting bitcoin payments in the recent past, increasing the scope of this cryptocurrency.
Other tech giants that are known to have adopted bitcoin and accept payments as well are Microsoft and fast-food chain, Burger King. Although continuous adoption is a more viable sign of bitcoin being recognized, partial adoption and payment acceptance also is a sign that bitcoin’s scope of adoption is increasing all around the world.
Internet star and Youtube sensation KSI recently made news for buying a Tesla with bitcoin. This not only helps for better publicity of bitcoin, but it has the scope for other companies to start adopting it as well.
Bitcoin has been growing exponentially for more than a decade and will continue to do so. One of the other signs that hint that bitcoin can become a global currency is the incompetence of current national currencies. Price manipulation and counterfeiting cause losses of millions of dollars all around the world. The physical currency can only achieve so much given its natural impediments.
The steps taken to ensure that counterfeiting and fraud are not caused are a lot higher than availing cryptocurrencies. Although this particular crypto seems to have heavy competition from up-and-coming cryptos like Ethereum, bitcoin is still going strong and will continue to do so. It is most likely that bitcoin will become a global currency very soon.
Given the incredible success of bitcoin, banking giants such as JP Morgan and Goldman Sachs are very likely to adopt bitcoin shortly and the wheels are already in place. JPMorgan President in February of 2021, made a public statement of his openness to accept and adopt bitcoin as a currency for their banking services. Although unsure when he said it is most likely to happen soon.
Consolidating or lowering an asset’s price based on circumstance is the best time to invest. A common rule that investors follow while investing money into shares, is to begin to buy stocks when it drops. This is because, if the stock from an all-time high comes down, it has to be a small circumstantial dent in its progress which will most likely be corrected.
Bitcoin’s had a slightly rough patch as other competing cryptos are reducing its credibility by a bit but being that said bitcoin is still going strong and will continue to do so. This price consolidation in bitcoin will open up new prospects who will avail and adopt bitcoin all over the world.
The last sign that Bitcoin experienced a global adoption was the acceptance of BTC payments by a record-high number of organizations. It was officially a payment method not just for popular brands like Tesla, Shopify, PayPal, Home Depot, but for small businesses that operate offline. In conclusion, there is a high probability that it will enter the mainstream market, especially with the support of the business sector and institutional investors.