Growing Force in Global Finance – Arguments for Bitcoin AdoptionSeptember 19, 2020
At the present moment, the price of BTC token has been stuck for some time. Since May 2020, it has found itself in the range between 8,000 USD and 12,000 USD. It has not strongly moved neither below nor above this space, which is unusual for the often exceedingly volatile cryptocurrency. This is why a movement of 40 percent seems, in comparison, like a relatively quiet period.
Another way would be to say, with a baseline price of 10,000 USD, that bitcoin is stuck in a 40 percent range, as the traditional investors would name it. Yet, saying this for something like the housing market, the Dow or gold would be pure insanity. Even in the age of the unprecedented COVID-19 coronavirus pandemic, it is nearly unthinkable that any of these traditional financial instruments or markets have the ability to move almost 50 percent at its baseline price.
This shows just how normalized the inherent volatility of bitcoin has become in the public mindset. Not only that, but it also shows that the wider public is growing increasingly comfortable with that notion. As this takes place, the relevance of bitcoin is growing as a financial instrument in the global economic arena. The same in turn becomes a series of strong arguments in favor of bitcoin adoption.
Regardless of the level of volatility, it is absolutely true that the present price range of bitcoin is relatively stable. That means that the bitcoin market is in its quiet period. This year began with the price of BTC token having around 7,000 USD. That price level was the result of a small but persistent bull run that occurred at the start of 2020. Soon that price climbed all the way to 10,000 USD offering a glimpse into a potential new start of a major bull run.
Yet soon after the pandemic hit, and produced the major market fall in March. Contrary to too many narratives that saw bitcoin as a safe haven, cryptocurrencies also took a massive tumble at the same moment. Thanks to that coronavirus-induced panic, bitcoin lost nearly 50 percent of its value in a matter of days. This was enough for many to once again declare that cryptocurrencies are useless and good is dead. But, not long after that, the narrative once again began to change in favor of digital money.
Technology Stock Mimicry
Some analysts are noting that ever since February, the biggest cryptocurrency in the world has behaved almost like a growing tech stock. Many of these showcase similar patterns but not on crypto markets. Instead, they are companies like Tesla or Apple, and their price moves in an oddly familiar fashion on huge stock exchanges, including Nasdaq. Both entities appear to be heading in the same general direction. As much as these two are different, there is a combined thread between the two – the power to scale. All companies that are active in the tech domain need to be able to expand their services or anything else they offer to encompass a rise in popularity, or, in other words, user presence. It does not matter if they provide an esports tournament support platform or a banking service.
All of them operate by the same ruleset and cryptocurrencies are no exception. That is why a strong focus for any call to adoption needs to be the idea that cryptocurrency tokens are not just pseudo-money or pseudo-stocks. They are first and foremost a manifestation of a really successful tech that has shown incredible ability to scale up when the demand is there. A successful app can be solid to millions of people across the world almost instantly. An effective digital currency is used by millions of people across the world in the same manner.
Everyone and Everywhere
The comparisons to applications do not end with scalability. There is also the question of access which is in fact greater than that of the mobile apps. These can come with geographical limitations and inaccessibility to some markets because of an economic or political issue. In the case of bitcoin and other cryptocurrencies, nothing like that applies. Instead, BTC token has only tech limitations, like both parties in a transaction requiring an internet connection and a digital wallet. Beyond this, anything is allowed and this currency is likely present in every nation in the world. Anyone can send and receive BTC tokens anywhere and at any moment.
There is no political regulation that stops bitcoin transactions nor an economic setup that demands these be halted at someplace and kickstarter somewhere else. The numerous detractors of bitcoin, including people like Warren Buffet, simply do not understand this fact, and the deep-rooted advantages and perks using this digital currency include. This, along with other benefits that come from using bitcoin showcase a strong and stable system that is unorthodox – thus the volatility – but nowhere near some kind of a flimsy setup that will soon cave into itself.
Money of the Internet
The final reason for considering bitcoin adoption in whatever amount is the fact that it is quickly becoming the money of the internet. As more and more people become involved in online structures like social media or other communities, so does the need for financial transactions to arise. Presently. PayPal and other traditional fiat money services have filled in this gap. Others, like Google or Amazon, do not work with these and instead want direct debit or credit card payments via traditional banks.
This is a shot for bitcoin, as no single solution is generally universally accepted – PayPal might be the closest thing to the money of the internet, but still provides room for other contenders. Of course, this does not mean what many evangelists foresee as the ultimate victory of bitcoin – this will not happen anytime soon, if ever. Instead, money on the internet implies an ability to service this niche just as well as PayPal. That is already taking place and represents the crown reason why anyone considering buying bitcoin should do it when the opportunity arises.