Bitcoin bull Tom Lee mentioned on Bloomberg that the real value of Bitcoin is around $13K to $14K. As for its current price, he believes that adoption is key towards getting the current price of Bitcoin back up. In 2017, Bitcoin was able to go as high as near $20K. But today, the cryptocurrency has dropped around 85%.
But one cryptocurrency that has minimized the recent bloodbath is Ripple. It was even able to take the spot for second largest cryptocurrency from Ethereum thanks to its xRapid product that aims to lessen the cost of cross-border transactions.
But for Ripple’s chief technology officer David Schwartz, he warned that in order for cryptos to get adopted, it is crucial for the industry to have necessary improvements. Many are still concerned regarding security issues, crypto exchanges that don’t prioritize user security, not to mention the lack of regulations in the niche, these are just some of the things stopping adoption from taking place. Schwartz mentioned that “I don’t want the adoption to get ahead of the technology. It took a long time for the internet to get to the point where it was suitable for anybody to use it and you didn’t have to really understand the technology in great detail in order to be able to get it to work”.
Bakkt to Trigger Adoption?
At this point, crypto observers are still waiting for institutional investors to enter the market. This is the reason why many are still hoping to have a Bitcoin ETF approved. However, in order for a Bitcoin ETF to get approved, SEC chairman Jay Clayton believes that there should be improvement within the market. A few months ago, the SEC rejected nine Bitcoin ETF applications citing the possibility of price manipulation within the niche. Jay Clayton discussed that exchanges don’t have tools that Nasdaq and other exchanges have. Surveillance tools can potentially track possible abnormal movements within the market that could suggest price manipulation.
A Bitcoin ETF is said to have the ability to simplify the process of investing in the crypto market. And also, it can potentially involve institutional investors.
Aside from a Bitcoin ETF, many are also excited to see what Bakkt could bring to the table. It is due next year and many believe that it can spur adoption.
Progress in Terms of Adoption
Despite a bearish market, there’s progress on the part of the crypto market in terms of adoption. A new study that was published by the Cambridge Centre for Alternative Finance showed that there’s a rise in the number of new users. This plays a significant role in terms of adoption.
Though many are still hesitant to make use of cryptocurrencies in their day to day transactions mainly because of the volatility of cryptocurrencies, this can be considered progress. And also, you have the SEC now working hard towards achieving regulatory clarity. The agency tracked down companies that were selling unregistered securities along with celebrities who took the money in exchange for their endorsement.
Though we now have Bitcoin near $3K, adoption is a silver lining in case you are still waiting for the next bull run.