Previsions on Bitcoin Adoption in 2020
The economic reality of 2020 is one we were definitely not prepared for. It’s a challenging year, to say the least. Even the major financial players are struggling, the social and political situation is tense all over the world, and hyperinflation is unavoidable. Traditional markets are in a precarious state, and it’s getting increasingly difficult to predict what comes next. In this unexpected and challenging context, what happens to Bitcoin? Were the previsions on Bitcoin adoption too optimistic?
The Bitcoin Asset
This may not seem like a good year to start investing, and many stock investors have actually lost a lot during this crisis. But Bitcoin isn’t a traditional currency, and its unpredictability can even be an advantage in this new economic background the COVID-19 pandemic has created. First of all, Bitcoin is a cryptocurrency that has the power to survive inflation. Crypto is known to follow its own path, and we are still to determine what are the elements that definitely influence the evolution of cryptocurrency. Secondly, it doesn’t obey a root authority; therefore, it is not exposed to the questionable decisions that authority could make.
Of course, Bitcoin has had its share of problems this year, but that’s normal in a world where even gold is losing value. But after the expected significant drop, the Bitcoin price is slowly going up again. For those who dare to make an investment and continue trading, 2020 can be an opportunity. The irony is that in this volatile economic environment, more people are choosing the speculative crypto way.
Bitcoin Adoption in 2020
Bitcoin adoption statistics are showing an unexpected trend for 2020. It seems that Bitcoin is starting a new adoption cycle, despite pessimistic previsions, since the Bitcoin adoption rate is going up at a significant pace. It could be a reaction to the current frailty of the US dollar, or to the inflation that the political environment only seems to accentuate.
On an international level, a study ranking countries on the level of cryptocurrency adoption has established that the countries with the best crypto adoption rate are Ukraine, Russia, China, South Africa, Nigeria, Kenya, and the US. A high Bitcoin adoption rate in countries where the income of the average individual isn’t high compared to other countries is even more impressive. It also shows that the trend of preferring investment in cryptocurrency over traditional options is general and gaining ground in more countries.
Another country where cryptocurrency is bound to receive a significant boost is Switzerland, with the new law amendments the Parliament has just passed. With the new and improved regulations, blockchain and cryptocurrency are expected to reach new levels in this country.
How Will Bitcoin End the Year?
In any case, many specialists consider that by December, we will see Bitcoin gaining a bit of stability, mainly because of the FOMO (fear of missing out) effect. Crypto enthusiasts will react to every little boost Bitcoin gets, and that will reinforce the Bitcoin adoption curve. It’s obviously hard to predict the trend of cryptocurrency with accuracy, as recent history has shown. It all depends on the investors and their reaction to market changes. But the fact remains that Bitcoin is still a valid option of investment even in the current context.