Three ‘Major Keys’ to Help the Bitcoin Price in BTC/USD Reach New Highs and Mass Adoption
In a recent article, Kyle Torpey, a Bitcoin writer and researcher for Forbes, gives three reasons why Bitcoin price would be surging. At the same time, he wrote about the potential mass adoption over the next five years.
Bitcoin Could Reach Mass Adoption in Five Years
The author started the article by talking about Adamant Capital’s Bitcoin paper in which they focused on why Bitcoin is at the end of a bear market and why it will start growing in the near future. They also give some reasons why investors should accumulate more of the digital asset before the upcoming bull run in the space.
The report has also focused on three main long-term drivers for the price of Bitcoin. These things to take into account are the increasing financialization of the asset, growing adoption among younger generations and the network’s approach to scaling.
The first point about Bitcoin’s future is related to its decentralization and approach to scaling the network. Bitcoin aims at remaining decentralized through a proof of work (PoW) consensus algorithm. Nonetheless, Bitcoin developers are also focused on providing scaling solutions to the digital asset through the Lightning Network (LN) a second layer protocol for Bitcoin.
Operating a full node is also a simple task for those that have enough knowledge about how to set them up and if they have the hardware requirements, specifically enough space to store the whole blockchain data.
The report also focuses on the expansion of the Lightning Network in the market and other side chains. This would allow users to transfer funds without having to use the main network. This reduces the congestion in the main Bitcoin’s chain and improves the overall performance of the network.
There are also going to be other solutions implemented that aim at improving the Bitcoin’s network, including Taproot and Schnorr signatures. The report also includes an increasing decentralization of mining activities in the future. At the moment, most mining activities for the Bitcoin network take place in China.
The second topic discussed in this report is related to the financialization of Bitcoin. Adamant Capital believes that there are going to be several institutional investors entering the market in the future.
The Intercontinental Exchange (ICE) announced in 2018 that they were going to be launching a new platform for institutional investors called Bakkt. The ICE is the parent company of the New York Stock Exchange (NYSE).
Bakkt will be offering Bitcoin futures that will be physically settled. The platform is expected to be launched during the current year. Moreover, Goldman Sachs has also invested in the cryptocurrency asset custody solution called BitGo. Furthermore, there are other platforms that are expected to be launched this year, including Fidelity Digital Custody, Nasdaq Bitcoin futures and more.
The report reads as follows:
“Bitcoin’s qualities of political neutrality, unparalleled security, global accessible liquidity, and predictable financial policy are probably improving. As it matures, we expect for Bitcoin to disrupt the $100 trillion investment vertical of Liquid Store of Value, and become a globally used digital gold and reserve asset.”
Finally, the last thing that will be contributing to Bitcoin’s long term growth is the millennial generation. According to the report released by Adamant Capital, this is the largest growing demographic in the world, superseding other generations as soon as in 2029.
This generation has been deeply marked and shaped by the crisis experienced in 2008. Most of these individuals had issues when finding work when they tried to become professional and, after the crisis ended, they had to live with the consequences of it.
At the same time, millennials have exposure to different peer-to-peer protocols such as BitTorrent to share files or Uber to move from one place to another. Bitcoin and virtual currencies work in a very similar way as these services by allowing users to send funds to one another without having to rely on a third party authority.
This, as this generation continues growing, they will be providing a strong tailwind for Bitcoin and digital assets. Bitcoin is currently being traded around $5,600 and it has a market capitalization of almost $100 billion. In the last 24 hours, Bitcoin registered a price increase of over 4%.