Many financial experts, scholars, and investors predict Bitcoin’s future growth. Find out why Bitcoin is likely to become successful.
Bitcoin doubles up as a means of payment and a store of value, accepted worldwide. However, it is also a highly volatile asset, with sharp and enormous price swings. Apart from volatility concerns, Bitcoin has also increasingly come under scrutiny by government regulators. Meanwhile, Bitcoin’s adoption and value continue to grow by the day. So, how does Bitcoin manage to remain so powerful and relevant amidst all those criticisms? The following article discusses why Bitcoin is likely to be successful.
Increasing Institutional Adoption
Many people doubted Bitcoin in the early days, saying it could not serve as a viable payment method if financial institutions did not adopt it. Such claims dragged on for some time as most institutional investors perceived Bitcoin as a market disruptor that would interfere with their businesses. Some even criticized Bitcoin as a bubble that would soon burst.
In recent years, those perceptions have dramatically changed, with several financial and investment companies increasingly embracing crypto. Many banks, insurance, and asset management companies now deal in Bitcoin and other major virtual currencies. They have invested significant amounts of money in Bitcoin, facilitating its easy accessibility to the public.
The increasing Bitcoin adoption by institutions suggests many global populations are ready and willing to use it as payment and an investment asset. That boosts investor confidence, portraying a positive perception of Bitcoin and the entire crypto market. The growing institutional adoption elevates Bitcoin’s future potential, encouraging its usage by the public worldwide.
Unique Supply and Demand Economics
Bitcoin boasts a brighter future because of its unique supply and demand economics. Unlike fiat currencies that central banks can print and circulate at will, Bitcoin’s supply won’t exceed 21 million tokens. Miners have already mined about 19 million coins, currently doing rounds in the market.
Bitcoin is also subject to the halving process that reduces the number of rewards issued to miners by half every four years. That creates a massive strain on Bitcoin’s supply, making it scarcer over time. Meanwhile, Bitcoin adoption is quickly taking shape across mainstream industries worldwide. That has impacted a growing market demand that experts believe will continue due to Bitcoin’s increasing mass adoption.
Like other market economies, Bitcoin’s diminishing supply and growing demand enable it to attract and retain a higher purchasing power. That means Bitcoin’s value will undoubtedly increase over time, creating lucrative opportunities for investors. Experts have issued different predictions about Bitcoin’s future, but most are confident its value will increase exponentially.
Multiple Real-world Use Cases
Bitcoin started as an alternative means of payment for daily transactions, and it has successfully achieved that goal. Several industries, including finance, e-commerce, manufacturing, retail, travel, health, and tech, accept Bitcoin payments for various goods and services. They also use it as an investment asset.
Bitcoin has seen the emergence of a global market comprising tech-savvy consumers seeking to shop with Bitcoin. However, its uses do not end there. Bitcoin is also an independent asset class, with huge trading volumes on major exchanges such as bitcoin-up live. While some use Bitcoin to trade, others hold it as a long-term investment to hedge inflation.
Bitcoin’s underlying blockchain technology is also an innovative platform that supports various projects and processes. It can facilitate the expedition of smart contracts, supply chain management, inventory management, training, and voting. Besides, Bitcoin has also inspired several consumer products, boosting its popularity.
Bitcoin is an alien invention, mainly underpinned by high volatility and regulatory pressures criticisms. While those challenges have slowed its adoption in some places, they are not likely to curtail its success. Bitcoin has unique qualities that enable it to thrive even in some of the worst economic circumstances.