The growth of bitcoin has surpassed the growth of internet users
The current rate of bitcoin adoption is outpacing the growth of internet users. Recent projections predict that the world’s most valuable cryptocurrency will reach one billion users in the next four years. With about 130 million users, bitcoin is now at a similar inflection point where the internet was in 1997. And the rate of mass adoption of bitcoin suggests that it will exceed the number of one billion users, almost twice as fast as the Internet did.
The vast global network that connects computers around the world is one of the most significant and valuable inventions of the 20th century. Although most people started using it in the early 21st century, it was actually invented in the 1960s. Today, it is difficult, if not impossible, to imagine a world without an internet connection. However, the adoption had a challenging and sluggish start as it took about three decades before the number of beneficiaries grew to about 130 million.
Comparing the Internet to a blockchain makes a lot of sense, as both technologies boil down to connectivity and data sharing protocols. Although one of the main factors for creating the Internet was the fast and efficient transfer of data between computers, it could be argued that the purpose of the blockchain is to verify the authenticity of digital data, and in most cases to attach a monetary value to it.
The mass adoption of blockchain technology is happening at a high speed, thanks to the constant growth of public interest in cryptocurrencies such as bitcoin and ethereum. Since the official launch of bitcoin in January 2009, there has been exponential growth much faster than the internet back in the early 80s. On April 5 this year, the market capitalization of all cryptocurrencies reached $ 2 trillion, doubling in just 3 weeks, making it the fastest-growing asset class in a decade.
Many indicators suggest that the momentum for the adoption of cryptocurrencies is accelerating at a faster pace than previously predicted in the last twelve months. Institutions, corporations, governments, and individuals participate in the crypto infrastructure. The number of active addresses is a key factor to consider when assessing bitcoin adoption. On-chain data suggests that the number of active addresses has doubled since the beginning of 2020.
Institutional investors are becoming more and more present
Institutional investors flocked to crypto markets last year. In fact, about 87 percent of bitcoin investments came from institutional investors, according to the world’s largest digital asset manager, Grayscale.
- We have witnessed a significant acceleration of institutional participation. There is no longer an occupational risk of investing in a cryptocurrency asset class. There is probably a higher career risk in not paying attention - said Michael Sonnenshein, CEO of Grayscale.
Billionaire and technology investor Mark Cuban said the development of cryptocurrencies and blockchains reminds him of the early days of the internet.
- It's completely new, no one really knows what it will be. There are a lot of projections - he said.
Cathie Wood believes that the adoption of bitcoin is only at an early stage and that the market value could reach $ 30 trillion by 2030.
By: Olivia J. - Gossip Whispers
