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Bitcoin Adoption - A "Tipping Point"

Wisebitcoin 2021-07-02

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The narrative of Bitcoin has shapeshifted considerably over the course of its existence of twelve years. Early investors were software engineers, programmers, and computer science graduates who had the foresight to predict the power of cryptocurrency before anyone else. It wasn’t just because they knew about Bitcoin and the crypto world. It was also because they understood its financial potential as an alternative payment system for the world and as a speculative trading asset.

However, the inefficiencies of the cryptosystem, high volatility, and lack of use cases limited the scope of this new technology and prevented many people from joining the Bitcoin club. In other words, it was challenging to market it. 

Fast forward to 2021, and Bitcoin is supported by tech billionaires. The narrative has evidently passed to entrepreneurs, high-profile investors, and corporate entities. This billionaire and institutional investor backing is popularizing the idea of cryptocurrency adoption in the mainstream. Let’s see what viewpoints analysts and institutions have as we look forward to the second half of 2021.

 

The Viewpoints of Analysts on Bitcoin in 2021

Bitcoin has been considered a speculative bubble for a long time. People were skeptical about investing in it and were apprehensive about its future. However, the year 2020 gave a rebirth to the idea of Bitcoin. It is now said to be at its tipping point by the very institutions that had once questioned the crypto’s efficacy.

Tom Jessop, the head of Fidelity Digital Assets, who had questioned Bitcoin’s use as a store of value a few months ago, now holds a different opinion about this digital asset. According to him, Bitcoin adoption has reached a tipping point, and it will continue to rise as an investment at a rapid pace in the coming years. 

It was at his recent interview with MarketWatch that he seemed to voice his bullish perception of Bitcoin and the entire crypto space. When asked about the reason behind the massive demand for Bitcoin, Jessop said, “I think you’ve had the accumulated experience of roughly 12 years of the Bitcoin blockchain being operative since the genesis block in early 2009. And the pandemic, quite frankly, was a catalyst for institutional adoption, and specifically Bitcoin and the narrative, or use-case, around digital gold.”

It’s not just Jessop who sees the pandemic as the catalyst for bitcoin mainstream adoption. Earlier in January, Bill Miller, the US investor, fund manager, and philanthropist, also seemed to be of the same opinion. According to him, Bitcoin has surpassed names like JPMorgan Chase & Co and Berkshire Hathaway in terms of market capitalization at a very early stage of its adoption cycle. He believes that the global economic situation will attract large corporations to put more funds into Bitcoin over the coming months and years. 

A recent report from Citibank, the multinational investment bank, has also caused quite a stir across the crypto net and beyond. A well-researched report by a team of six analysts entitled "Bitcoin: At the Tipping Point" stated that “There are a host of risks and obstacles that stand in the way of Bitcoin’s progress, but developments in the near term are likely to prove decisive of its uncertain future as the currency balances at the tipping point of mainstream acceptance or a speculative implosion.”

Analysts stated that institutional interest from the likes of Mastercard and PayPal is helping Bitcoin to become the medium of choice for international trade in the future. Many describe it as the “North Star” of the blockchain ecosystem, the guiding light that all other crypto projects and currencies will follow.

The global audience is also witnessing a change in the tone of big Wall Street players. BNY Mellon, the oldest bank in the U.S., is offering custody services for Bitcoin and other digital currencies. JPMorgan has also touted Bitcoin as an alternative currency to gold that can double or triple its price in the long run. 

 

What’s Next in the Bag for Bitcoin?

In 2010, Satoshi Nakamoto, the pseudonymous developer of Bitcoin, made a statement about the digital coin that stated “I’m sure that in 20 years there will either be very large transaction volume or no volume.” So far, the former situation seems to be prevailing. 

Analysts and financial institutions all over the world are coming in support of this disruptive tech currency. Its meteoric rise is setting a vision where its probability of playing a major role in world trade doesn’t seem to be very far-fetched. And as Grayscale stated, “When it comes to learning about investment opportunities, while it’s possible to be late to the game, it’s certainly never too early to start.”

So if you are a potential investor and contemplating when and where to start, you can do your first steps with Wisebitcoin!

Wisebitcoin is a trading/exchange platform for cryptocurrency products. It offers a user-friendly way for traders to begin crypto trading in a seamless manner. Contact us to get started with your crypto journey today!