Industry News A New Record in Bitcoin Adoption

A New Record in Bitcoin Adoption

May 28, 2019

In the previous period, Bitcoin, just like other cryptocurrencies, once more started showing signs of serious rejuvenation. The bear market seems well and truly behind the crypto domain and its bottom has been confirmed after many months in the red. Bitcoin alone was able to almost triple its value in less than half a year and it is now close to prices that have not been seen for more than 12 months.

This is mainly due to the fact that more and more investors are fearing that they will not get a chance to once again buy BTC at the current prices. Some are even worried that they will never be able to get the same pierced again, which is a slim possibility but still present in the minds of the investors. This all shows that the bullish sentiment and the FOMO mentality is back across the board. Once more, the hyped-up talks about the all-time highs in the crypto market are ever-present.

While so many new crypto investors and those into the HODL mentality are engaged in speculating when will the new price rise wave stop, there are additional factors showing the effectiveness of the slow and sure growth of the bitcoin community. In fact, the same asset is already defining new all-time highs when it comes to the actual users and their engagement with the same cryptocurrency.

Wallet Sizes and Numbers

One of the key benefits that bitcoin brings to the table of currencies is the fact that offers supply that is incredibly scarce. The entire blockchain system of bitcoin was created to be deflationary. This is why the number of bitcoin tokens was capped in a network level at 21 million. No more bitcoin tokens than those 21 million will ever be created.

But this is not the only element that provides bitcoin its level of scarcity. Even today, millions of bitcoin tokens are presumed lost because of lost or forgotten access keys or because the owners died and did not cover the tokens to some other user. The same could even be the case for the mysterious creator of bitcoin, Satoshi Nakamoto and his personal cache of BTC tokens.

This type of design leads to its assets to constantly bubble up in size and then fall down in value fast. This makes it one of the fastest rising and fastest falling financial assets that were ever made. The level of scarcity also explains why crypto investors are so enthusiastic about the recent rising Bitcoin price. Yet, the latest record-breaking of bitcoin is not connected to the price, but to bitcoin wallets, more precisely their number and individual size.

Holders of 0.1 BTC or more recently came out with a very interesting metric. According to their co-founder Nick Carter, the network recently broke a new record with its digital wallets. Carter stated that there have never been more wallets addresses that are holding at least 0.1 BTC at the present moment.

Some would argue that this is completely peripheral news in relation to the possibility of bitcoin going over $20,000 mark in the near future, or even reaching out close to it. Yet, the wallet number and their individual size are arguably a lot more significant not just for the present moment, but for the network future as well.

Interest in Bitcoin

The simplest way to explain how this is important is to state that people are interested in bitcoin. Like with esports, social media and other modern ventures, engagement and user acquisition are the most important precursors to growth.

The news shows that individuals are reaching out to bitcoin as a medium of storing and exchanging value and that more individuals are buying more of it. At the same time, the previously mentioned embedded scarcity will make sure that the prices continue to grow as well. This creates a nice self-feeding cycle that the creator or creators of bitcoin most likely at first envisioned for bitcoin.

Right now, it looks like that cycle is in full swing. This is good for everyone in the still-early phase of this digital currency because the only loss is stability. In this environment, even though the price rise is in theory good for all users, the level of volatility also skyrockets.

Means of Earning Bitcoin

There is an additional factor that allows the bitcoin community of users to overcome any adoption issues is the fact that it is much easier to get BTC than any other cryptocurrency. For example, the Coinbase Earn program will give out a range of bitcoin cryptocurrencies, but the original has been giving out bitcoin for years. This is just one of the many contemporary ways how a person can earn, buy or even trade for bitcoin.

From bitcoin-based forums to small one-computer mining operations, the option for generating bitcoin, albeit in small quantities are numerous. The process of slowly getting more and more of these options began a long time ago when crypto enthusiasts figured out that regular mining is no longer feasible outside of major mining pools. Since then, many individuals got their hands of some bitcoin or even some regular streams of income of the same digital currency.

As weeks turned into months and these into years, the number of individuals like this kept on growing. Today, the results of that process are clearly seen. The sum of 0.1 bitcoin is not a small number and these are not airdropped tokens that would measure a couple of dollars. In other words, the process is not one of the altcoins where they forcibly tried to make a market overnight. Instead, the numerous trickles of BTC earnings, along with the willingness to invest large sums into it as ordinary users created this growing ecosystem.

It has all that is needed to keep growing and become one of the key arguments for bitcoin – the fact that actual people want to use it in their real lives. This alone already provides bitcoin with a huge advantage over other cryptocurrencies and shows well-designed crypto systems will find their users.

Source: NewsBTC