The number one thing cryptocurrency investors are waiting for is mainstream adoption. This basically means assets like Bitcoin will explode in value. Ecosystems will flourish, blockchain tech will see a wider application, and worldwide platforms will harness its full potential.
With Bitcoin recently hitting a new all-time-high right under $20,000, some enthusiasts are wondering if crypto is finally moving to the mainstream.
Is Crypto Coming Back?
Back in late 2017, early 2018, Bitcoin made its way into the public eye. Newscasters all over were discussing its potential. Investors worldwide were putting money in, causing the asset to pass $19,000. Unfortunately, it wasn’t meant to last.
Whales and long-time Bitcoin holders eventually sold, causing the price to crash hard. Some predicted the asset was just a fad. A one-and-done pit to buy on a platform such as Crypto Exchange and waste your money in. However, if recent events are anything to go by, cryptocurrency is anything but a fad.
PayPal, the worldwide payments group, has added official support for Bitcoin. Square, a company lead by the CEO of Twitter, is a massive proponent of the asset. Even the CEO of BlackRock, the largest asset management group in the world, claimed Bitcoin could even replace gold. For many, this very well may be the attention crypto has needed.
A Ways to Go
Of course, this isn’t just it for the asset. In fact, Bitcoin is bound to crash again before it really makes things mainstream. But that’s not a bad thing. If anything, the price will finally correct as whales sell once again, and people who were hesitant at $20,000 will dive in at the lower value.
From here, the technology behind Bitcoin, the blockchain, is much more likely to see mass adoption. Speaking to CNBC, PayPal CEO Dan Schulman said that cash usage has dropped “40 to 70%.” The world is heading digital. With industries heading into the realm of digital payments, it’s only a matter of time before they adopt cryptocurrency.
That’s why it’s so important that groups like PayPal introduce tools to make crypto more accessible. If companies can look at Bitcoin and see it’s easy to adopt, they’re much more likely to. That, and we’re bound to see more central bank-issued cryptocurrencies as well.
This is especially prevalent in China. The country is pushing its own government-powered stablecoin for the world to take advantage of. Many have claimed it will go directly against Facebook’s Libra cryptocurrency for the first mainstream crypto.
Other Cryptos Carry
Of course, Bitcoin and stablecoins aren’t the only application for this tech. Ripple, for example, has been partnering with banks for years now. The company’s XRP cryptocurrency is designed for international transfers, meant to succeed banks’ current SWIFT system. It can convert funds internationally in minutes rather than days, with next to no fees as well.
Ethereum is moving toward its proof-of-stake upgrade, as well. This change will introduce cryptocurrency staking – a new way to earn on crypto in the form of interest. This excitement will transfer over to Ethereum’s big push for decentralized finance applications more than ever before. Once the world realizes crypto is used for more than just money transfers, who knows what will happen?
Of course, some enthusiasts are already aware of Bitcoin’s other use cases. Some might argue it’s meant to a currency for the world to use, but others believe Bitcoin is a store of value. This is largely due to the asset’s scarcity.
There can only ever be 21 million Bitcoin in existence. This limit is programmed into Bitcoin’s code. That means the asset is always likely to have value. It can’t be inflated like, say, the United States dollar. Smart investors look at that difference and see Bitcoin as a safe haven. It’s much closer to gold than some might give it credit for.
That said, there’s still no guarantee that Bitcoin and other cryptocurrencies will break mainstream. While the signs are all there, this is all speculation.