Mass adoption is something that can help increase the price of a particular cryptocurrency. Though there are businesses that are already accepting cryptocurrencies, this ultimate dream is still a work in progress.
For this reason, Vitalik Buterin believes that people are giving so much attention to the possibility of a Bitcoin ETF when they should instead be focusing on a Bitcoin ETF.
According to a survey conducted by Coinbase, 18% of US students responded that they own (or have owned) a cryptocurrency such as Bitcoin. That is twice the rate of the general population who invested in some way on Bitcoin. This suggests that Bitcoin and crypto ownership is actually on the rise especially for the younger demographic.
Younger Generation Loves New Technology
It is quite common that it is the young individuals who lead technological change. Facebook, for instance, is now the largest social media platform, that was initially used mainly for students on a campus. However, as it was adopted all over the world, it has become a household name.
In addition to this, in the 1980s, the internet was predominantly used by students and academics who want to share research.
Aside from the fact that 18% of US students have owned a cryptocurrency, 17% of students consider themselves to be knowledgeable about cryptocurrencies and blockchain technology. In comparison to the general public, it is said that only 9% consider themselves to be well versed in the crypto market.
Adoption Takes Time?
If you are going to ask the chief executive of Coinbase, he believes that mass adoption for Bitcoin may take some time. This was the time when Bitcoin price was only around over $6,000. According to Brian Armstrong, “I think it will be quite some time before you cross the street to Starbucks in the U.S. and pay with crypto”.
However, Starbucks teamed up with Microsoft and New York Stock Exchange owner Intercontinental Exchange to come up with their own digital platform, Bakkt. For Armstrong, only 10% of cryptocurrencies are used in real life applications. The rest are then used in games and other purchases online.
Ari Paul even argued that in terms of adoption, cryptocurrencies find itself in the same spot as the internet when it was in 1994. What this means is that Ari Paul thinks that cryptocurrencies have a large potential.
Countries Adopting Cryptocurrencies
Regulatory changes changed the way countries treat cryptocurrencies. In fact, India’s Central Bank that announced a few months ago that banks shouldn’t be transacting with crypto exchanges created their own research group that takes a closer look at cryptocurrencies. India is now currently looking at the possibility of having its own digital currency.
As for Venezuela, this is already happening. In fact, blockchain technology’s decentralized nature has been used in order to circumvent the US sanctions and in order to save an entire economy.
Despite the issues surrounding cryptocurrencies from slow transactions and expensive fees, are we going to see more businesses adopting cryptocurrencies in the near future? Or this will take some time considering the fact that the crypto market is still in its infancy?