Bitcoin Mass Adoption Is Likely Catalyst for Bull Run
Yesterday was the 9th anniversary of the first notable Bitcoin transaction, where a man spent 10,000 BTC on two large pizzas. Since then, adoption has come a long way. And if we view adoption as the prime cause of an increase in Bitcoin prices (since it represents ramped up demand), then there is much more good news in the works right now.
Several New Developments In Ecosystem
One such example is the release of a Google Chrome extension called “Get Used to Bitcoin”. Its basic function is to automatically convert all currency values into Bitcoin prices. By showing things in decimal terms of Bitcoin, it is expected that users will become more comfortable with the idea of using the coin. Generally, the big pushback comes from the idea that the prices would be too volatile or that 1 Bitcoin is too large a figure to be relevant for purchases like Starbucks.
Then you have prominent supporters like Twitter CEO Jack Dorsey. His company, Square, has a crypto division but based on their tweets and actions, they are solely focused on Bitcoin. It seems like Dorsey’s only concern is with being a Bitcoin maximalist and he has no time for any of the other cryptocurrencies. This can be evidenced by him buying approximately $10,000 a month in BTC, having minimal interest in other cryptocurrencies, and being an investor in Lightning Labs. Everything he does points towards him believing that BTC will be the one cryptocurrency that makes a difference and that the Lightning Network will enable cash-like use cases.
We also have the announcement that Coinstar, the supermarket Bitcoin kiosk company, has expanded their network to include 21 states and the D.C. area. With 2,200 locations over the United States, they are making it much easier for retail buyers to get money into the cryptocurrency ecosystem. The service allows for users to buy Bitcoin using up to $2,500 in USD bills.
The Implications of These Moves
Outside of Bitcoin, you also have things like Coinbase enabling the borderless use of USD Coin (USDC). This stablecoin would present numerous benefits to merchants. There would be no chargebacks, minimal transaction fees, and the payment would be settled within minutes. Coinbase’s commerce division already allows for the use Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH) and Litecoin (LTC) in payments, but USDC could be the gateway for many more merchants to get comfortable with less volatile cryptocurrencies on their way to accepting Bitcoin.
We may now be entering a Bitcoin pullback now, as the rally enters a pause. However, the cryptocurrency traded sideways around the $8,000 mark and we have seen significant support around the $6,000 level, so it seems unlikely that Bitcoin will drop below this support level. With the 50-day and 200-day moving average showing bullish indications, it seems like there is a lot of room left in this bullish run. We went through a bearish run of almost 18 months, and all the positive news above seems to support the idea that Bitcoin has a lot of upside coming its way.