Cryptocurrencies still face major challenges in adoption. Although most countries have laws and regulations to support the cryptocurrency industry, there are still many areas that need improvement in terms of the overall adoption of cryptocurrencies and use-case scenarios involving digital assets such as Bitcoin.
(Image source: needpix )
In a recent interview, Dan Held, director of business development at Kraken, spoke about bitcoin adoption, saying:
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Large-scale adoption of Bitcoin requires some catalyst, some key people, and price. As the price of Bitcoin rises, more people will talk about it, which increases people's understanding of Bitcoin and also encourages more people to buy it.
Bitcoin will be halved in less than three months, which may make people realize once again that the amount of Bitcoin is limited, highlighting its scarcity, and will promote more buyers to push prices up.
Although the price of Bitcoin has experienced several huge ups and downs since 2009, the increase in the number of active Bitcoin addresses has been fairly stable. This shows that more and more people have accepted the concept of Bitcoin, and they are willing to continue trading Bitcoin.
Source: Glassnode
Although Bitcoin has been recognized by more mainstream countries and institutions such as the United States, Dan Held believes that as the user base of Bitcoin continues to expand, the regulation of Bitcoin will also consider its popularity. The wider adoption of Bitcoin will help produce a friendlier compliance infrastructure, thereby removing the uncertainties that hinder Bitcoin's wider adoption and mainstream acceptance. He continued:
If the government bans Bitcoin, they are actually harming the part of the people who hold it. But what happens when the bitcoin population accounts for 25% to 30% of the country? Do you really want to ban Bitcoin, and then let 30% of the people who hold the coin vote for others in the next election? This is a very powerful incentive because now people can participate in voting, guide policies, and ensure that their wallets and coins are secure.
In 2019, Federal Reserve Chairman Jerome Powell described Bitcoin as a "speculative value storage method". Although his remarks emphasized Bitcoin's speculative nature, we can also see that Bitcoin has become mainstream from such a statement. This is of great significance to the development of Bitcoin.
Former US presidential candidate Yang Zhiyuan and current presidential candidate Michael Bloomberg also talked about cryptocurrencies and digital assets, which again confirms Dan Held's previous point.
Dan Held pointed out that for a long time, Bitcoin's supporters have not been really valued. He went on to speculate what will happen when the user base of cryptocurrencies grows globally and how regulators will respond. He says:
It will be a real threat when Bitcoin will account for 20% or 30% of the world's population in the next bubble, or if the entire US population owns it.
Although Bitcoin is gradually being accepted by a wide range of users, which may greatly facilitate the regulation of cryptocurrencies, many mainstream institutions still remain skeptical of cryptocurrencies in general.
A recent JPMorgan Chase report shows that compared to the traditional hedge portfolio of many institutional investors, cryptocurrencies may be subject to significant restrictions due to the lack of government-recognized fiat status.
Source: JPMorgan Chase
The views in this report are highly skeptical of cryptocurrencies. With the upcoming halving event and the decline in volatility levels, Bitcoin will further consolidate its position as an investment vehicle and attract more investors who have not yet entered the field.
