Since 2009, criminals have connected cryptocurrency to over $2.5 billion worth of dirty money. It has also been used to hide identities while transacting for some illegal purposes over dark web. Development of such negative use cases is a core reason as to the anti-narrative against bitcoin which further translates into lack of adoption and acceptance as a form of payment.
Kyle Asman, partner at BX3 Capital Investment Advisory shared his opinion with BlockPublisher that BTC price is one of the most dominant factors to process mainstream adoption of cryptos among masses. He said;
BTC price is one of the most important things for mainstream adoption. Everytime the price of BTC falls, interest in the market drops off. We saw a peak in new wallets, and volume when Bitcoin made its run to $20,000 in December of 2017.
It is a popular opinion that better acceptance is to arrive when the cryptocurrency prices show an attractive proposition. Such an event was shown in 2017 when bitcoin priced up to the $20,000 mark. This was a period where people jumped into cryptocurrencies as it kickstarted a narrative that cryptos will be the future form of currency.
While price remains an attractive instrument to bring in the niche consumer or an investor looking to buy and sell within the crypto space, it cannot be termed as really effective in moving the market. Since 2017, bitcoin price has dropped down to as little as $3,000, but the crypto market cap has only become bigger and better. The whole cryptocurrency market cap is more than any single financial institution, which is a testament to the investment there lies in the space.
If numbers were in anyway related to crypto adoption, it would have been apparent in aspects like market cap or the number of projects being added to the market. But it is the opposite, the crypto market cap values at over $200 billion and there are more and more projects being added to it daily, despite the price plummet.
Speaking to BlockPublisher, CEO of ICOAxiom Henry Stanley agreed that there are other aspects more important than price to determine adoption. He stated;
In order for mainstream adoption of crypto, ease of use is a bigger factor. The on ramp for purchase and selling crypto coins and using them will do more to incorporate crypto into the mainstream then the BTC price.
Apart from the use cases, tests offered to cryptos can be seen in the lack of understanding of the technology by authorities and the general public alike and attempts by financial institutions to shut down cryptos. In the current status quo, the crypto space as a whole does lack is real value for consumers. This value can be termed towards the unaccepted status of BTC and other cryptos within daily life operations.
Stefano Covolan, founder of blockchain firm Korporatio also spoke of the lack of use cases bitcoin has to offer to the user. He said;
There is the lack of use cases, if in simple, i can’t do much with BTC why would I keep it in my portfolio? So, I see the equation in this way: more use cases will bring more adoption and more adoption will increase the price.
Adoption among the mainstream customers requires more than mere price spikes. Prices cannot solve the persistent problems for bitcoin and other cryptos. Any sound investor would know that prices are subject to a great amount of volatility, and would not join in just for the sake of an attractive selling and buying rate. The real game changers are regulations, development of use cases and institutional investment into the space. Talking to BlockPublisher, Co-founder of Delphi Digital, Kevin Kelly had states;
The launch of gold-backed ETFs in the early 2000s granted a wider investor base access to the yellow metal. The approval of a bitcoin-backed ETF will likely boost the price of BTC (and as a result other crypto assets) if history serves as any guide.
BTC price does not do a lot to influence adoption, rather it’s the other way around; adoption influences the bitcoin price.