Feb 22, 2019 15:30 UTC
Feb 22, 2019 at 15:30 UTC
How Bitcoin Adoption is on the Rise Despite Bear Markets
The Cryptocurrency trade market has seen one of the worst bearish trends in recent times which nearly lasted for over 6 months. During this period major cryptocurrencies lost a significant portion of their market capitalization and many altcoins which jumped into the crypto game after the 2017 price high perished due to the falling markets.
Bitcoin, the pioneer cryptocurrency also lost almost 80% of its total market valuation to the prolonged crypto winner of 2018. However, things were not all gloomy for the pioneers as it saw a steady rise in its adoption despite the falling markets.
So what has made Bitcoin climb the adoption charts despite the falling price? We will try to analyze various factors which have been a catalyst in Bitcoin’s phenomenal rise.
The Emerging Markets are Biggest Bitcoin Adopters
2018 might have been a year to forget, despite the gloomy markets the Bitcoin community has seen a rise in its adoption. One of the major contributors towards this rise is the new and emerging markets, especially the developing nations whose banking systems have failed them beyond recovery.
Venezuela is one such country which has seen its financial economy go down the drains, the inflation has made their fiat not even worth the paper they are printed on. The US sanctions only added to the woes. They did attempt to form their national cryptocurrency petro, backed by their gold and petroleum reserves, however, the petro turned out to be a bigger failure as the technical aspect of the national crypto was flawed. The US went ahead to put sanction even on the national crypto which the government was looking at as an escape.
When all doors seem closed for Venezuela, Bitcoin came in as the savior they were looking for. The government legalize the use of Bitcoin in the country and are looking to incorporate it in their financial system so that citizens can use Bitcoin in their day-to-day life.
The trading volume of the local bitcoin exchange in Venezuela as on 11th Feb 2019 was 157X higher than the biggest stock exchange in the country.
Similarly many emerging and upcoming startups or the nations plagued by inflations and the disastrous economy have turned towards Bitcoin for their revival. When Satoshi invented Bitcoin this was what he visioned about, helping the troubled developing nations to get out of their misery brought upon them by their flawed centralized banking systems.
How Bitcoin use is Growing Every day
Bitcoin is among the only two cryptocurrencies which are seen as an entity rather than security. This plays a big role in the rise of Bitcoin adoption. Apart from Bitcoin, Ethereum is the only other cryptocurrency which is not categorized under the security offering.
Security offerings are like collaterals and not an entity, let us dumb it down to understand it better. Security offerings can be used as an exchange against the entity and do not really have any universal value.
Bitcoin is an open-source blockchain based platform which was poisoned to create a decentralized network of finances handled by the peers on the network, instead of a centralized authority taking care of it. It promises to be faster, more secure and private than the existing traditional payment networks.
The original idea and the vision for a no-monopoly barred system earlier attracted people with libertarian views, however, the phenomenon gripped the world slowly but steadily which also saw its prices rise beyond any analysts predictions or imagination.
The rise and fall in prices of any commodity is a part and partial of any trade market and no can accurately predict the next bull run or bear trends. But, the real value lies in the core principles and how well the idea has been developed. The value rises as the entity gets wider acceptance, and the same holds true in case of Bitcoin as well.
The falling prices might have worried the investors who jumped on the bandwagon after the 2017 rise, hoping that the prices would go further up, but despite the falling markets Bitcoin has established itself as the true digital asset of the modern world.