Bitcoin Following the Same Growth Rate as of Internet? A Look at BTC and World Wide Web History
It’s been a decade since Bitcoin first came into existence, rising from the meltdown of the 2008 financial recession. The growth of the leading cryptocurrency has been a slow and steady one until now.
As the global markets come under pressure, with economies slowing down, threat of currency crisis overhead, surprising rate cuts, escalating trade wars, and looming danger of yet another crisis, Bitcoin has emerged as a hedge in these uncertain times.
Regulators have also come to the realization that they can’t ban bitcoin while comparing it with gold as a store of value.
Bitcoin is like the Internet in its Early days
‘Bitcoin is like the Internet in its early days,’ is how experts like Apple’s co-founder Steve Wozniak and CNBC’s Brian Kelly see Bitcoin.
A similar reference has been made by Brad Garlinghouse, the CEO of Ripple as he stated how when the president came out and tweeted
‘I don’t like cryptocurrencies’ was a lot like “saying it to the internet companies in 1997.”
He further pointed out how the US needs to stay ahead of the cryptocurrency and blockchain game by providing regulatory clarity and not stifling innovation just like it did with the internet, in first earliest days back in the mid-90s.
In the US, he said, the same thing can happen around blockchain as with Internet in the late 90s.
And Following its Adoption Rate?
According to a chart shared by analyst Timothy Peterson, Bitcoin is actually following the growth chart of the Internet.
— Mark W. Yusko (@MarkYusko) August 7, 2019
“Sustainable BTC price has followed bitcoin ATM growth very closely,”
said Peterson while making another analysis where he compares the number of BItcoin ATMS with BTC price.
“A simple count of bitcoin ATMs give a strikingly accurate estimate of the fair value of BTC.”
Currently, there are 5354 crypto ATMs around the world, as per Coin ATM Radar data.
About this, analyst PlanB who is known for his work on determining bitcoin value by using the stock-to-flow model that is based on the scarcity of an asset said,
“Atm/price correlation could be spurious (like the rising global beer consumption I mention in the pod). BTW same can be said for sf, but sf/value correlation is also present in gold, silver.”
Bitcoin in the Limelight…
Macroeconomic turmoil is currently the reason behind the growth of BTC, which is a demographic mega-trend.
Though bitcoin adoption might be ‘minuscule’ compared to traditional finance, with cash, debit, and credit being the king still as per the findings of the Congressional Research Service (CRS), it is fast developing as Facebook with its “Libra” cryptocurrency plan and regulator putting it further into the limelight.
“Bitcoin is highly volatile and based on thin air,” Treasury Secretary Steven Mnuchin basically compared the flagship cryptocurrency with the USD here, back in July. But he finds it to be “a national security issue.”
BTC versus USD for the Title of World Reserve Currency
With Trump clarifying the USD is the only reserve currency and Mnuchin specifying its role, “Treasury takes very seriously the role of the US dollar as the world's reserve currency,” Bitcoin’s fight for the title of the world reserve currency seems very real.
Meanwhile, Officials like Kevin McCarthy, the California Republican “like bitcoin” and the security of the blockchain ledger technology behind cryptos.
USD’s status as a global reserve currency is already numbered, given the fact that history has seen numerous currencies acquiring this status but no more than a century.
De-dollarisation has been active for many years now and with digital currencies, it has become even easier as nations utilize them to evade sanctions imposed by the US.
A new currency will surely take its place as the global reserve currency, and what could be better than Bitcoin, a decentralized and deflationary asset with a fixed supply?