Bitcoin’s Path To Widespread Adoption
The world is a big place, unfortunately there are not that many Bitcoin (BTC-USD) to go around. Last winter we saw a prelude to what can happen when people in mass want to acquire Bitcoin, the price skyrockets. However, since then Bitcoin’s price has corrected by approximately 70%, and now that it’s close to production cost could represent a level much closer to fair value. Still though, the Bitcoin marketplace is a relatively small market, with almost exponential growth possibilities.
So, what will happen in future waves of buy interest and popularity increases? What will happen when substantially more people decide they want to own Bitcoin in the future? Fortunately, Bitcoin can be broken down into much smaller units, Satoshis. And when all the Bitcoins are mined there will be about 2.1 quadrillion Satoshis someday. This is roughly comparable to the approximate 3.7 quadrillion cents that make up the world’s M1 fiat money supply.
Bitcoin and its blockchain network coupled with the Lightning Network protocol represents a digital currency and a payment system that is superior to the current fiat money and financial system in many respects. In addition, Bitcoin is being adopted as a form of payment by an increasing number of companies, and is being recognized as a legitimate form of money, and/or an official commodity/asset by many governments. Furthermore, the number of blockchain wallets continues to grow, and there are over 28 million accounts now, which implies that a growing number people are joining the Bitcoin network.
It appears likely that more and more people will continue to join the Bitcoin network going forward, and as an increasing number of active users begin trading and transacting in Bitcoin the price could go substantially higher.