Bitcoin Adoption: What Is It And How Will It Change Its Course
Bitcoin is the leading cryptocurrency that changes the world. Being the first released coin in the market, it has become one of the most used digital currencies, accepted in most institutions. But as it grew in value and has yet to release coins (until the supply reaches its limit), we’re starting to wonder what the future holds for Bitcoin and if it will ever be adopted globally for anyone to access.
In the following paragraphs, we’ll discuss the possibility of Bitcoin becoming a monetary asset and how this will affect fiat money.
What Is Bitcoin Adoption?
Adopting a cryptocurrency means recognizing its role as the world’s best hard-money asset. In other words, to be officially seen as a risk-adjusted coin and a great liquid investment opportunity, other than people’s usual investments. Given that Bitcoin is one of the most stable cryptocurrencies at the current moment, it is expected for it to be adopted by 2030. Although the predictions are yet to be verified, it’s more likely that the coin will get to this level sooner or later.
One of the reasons why Bitcoin hasn’t been yet globally adopted is the language. As Bitcoin’s whitepaper and primary literature are written in English, it’s not suitable for achieving hiperbitcoinization. Since cryptocurrencies don’t have a specific leadership or a marketing team, the only solution is for volunteers or blockchain companies to help other communities and translate everything from scratch. Until now, more startups have translated Bitcoin-related articles into different African languages, where there’s the highest mobile money usage.
Although the countries’ currency depreciation is concerning, people still don’t clearly know how to store and preserve Bitcoin value. Among other small businesses around the world that voluntarily translated Bitcoin content, one startup also translated the cryptocurrency’s whitepaper into Braille to help people with vision disabilities understand and use Bitcoin. The business is called Neatnik, and this project started in 2017 when they created tactile diagrams.
The Bitcoin community is eager to share knowledge and spread investing practices among others. Still, it’s a difficult long-going process that will take some time to fully develop so that people globally can access Bitcoin’s benefits.
If you’re curious about the current Bitcoin price, know that its value increases by the year, even though the price is volatile. The media hype can make investors buy or sell, which is why you should keep an eye on the news. At the same time, the price is influenced by ongoing demand and supply changes.
How Will It Influence Bitcoin’s Future Development?
There’s a concern regarding Bitcoin’s limited coin supply, which is supposed to reach its peak in a few years. When that happens, and all 21 million bitcoins are issued, no new bitcoins will be released, which means the cryptocurrency’s future is somewhat unsure.
But experts think that Bitcoin will still be worth millions in the future, regardless of reaching its end. With that in mind, institutional investors might be interested enough to participate in the blockchain and revive Bitcoin’s value, which is determined by the limited supply that increases demand.
Others say that cryptocurrencies will overtake traditional investments in a span of ten years from now because the level of investors’ trust has increased. Plus, the younger generation has a more positive attitude towards Bitcoin, meaning that its adoption is relevant and should be performed globally.
Will It Influence Fiat Money?
Although businesses were reserved at the beginning of Bitcoin, they have started accepting crypto payments. But would it be wrong for countries to fully adopt cryptocurrency as a legal tender? For some of them, it might be a better decision than to keep their regular money.
For example, El Salvador, a small country in Africa, officially adopted Bitcoin last year, and now people can make exchanges for goods and services with their bitcoins. Even though people’s reaction was to protest, most of them didn’t even understand Bitcoin completely to use it. But countries like El Salvador need a change in terms of currency, where banks are not accessible to the population, and low-income account holders are discouraged by high-transaction costs.
Cryptocurrencies may also solve the problem of debt crises and weak domestic currencies, but there’s a need for people to be educated regarding Bitcoin and other trustworthy cryptocurrencies.
Bitcoin adoption is yet to be seriously considered by many countries, as people and governments still struggle with fiat money. Inflation is currently affecting people living worldwide, as basic aliments are becoming more inaccessible, so there are disadvantages and advantages for both parties up until now.
Do Cryptocurrencies Have A Future?
Although it’s tricky to predict what will happen to cryptocurrencies in the span of a year, here are some factors that can heavily influence their worldwide adoption:
- Regulations in the US and abroad;
- Worldwide market adoption of crypto payments;
- Exchange-traded funds based on the blockchain;
- Countries adopting Bitcoin as legal tender;
These factors’ development is steadily moving to a common ground for cryptocurrencies, so it might take some time until everyone gets to use Bitcoin consciously. But as crypto regulations are moving forward on a federal level, and cryptocurrencies are taxable, there should be a legal framework that doesn’t interfere with the blockchain features.
The global cryptocurrency market is also expected to triple by the end of 2030, meaning that investors, businesses and brands will not ignore this opportunity, which will also increase crypto investments. But there are still some fears regarding the risks of these regulations, as investors are worried about their impacts. And given that most cryptocurrencies have a huge carbon footprint, eco-conscious people have reservations about them, as they need enormous computational power for mining (yet some new cryptocurrencies are environmentally friendly).
All signs estimate that cryptocurrencies will be adopted at some point in the future after people know better what they are, and the government will be able to create a legal framework suitable for the blockchain. Since there are so many uncertainties, we’re excited to see what the future holds!
Image Source: freepik.com
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