Home Market Analysis Bitcoin Could Hit 10% Adoption Rate By End Of The Decade

Bitcoin Could Hit 10% Adoption Rate By End Of The Decade

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Bitcoin Could Hit 10% Adoption Rate By End Of The Decade


“Lettuce hand” is an expression some people use to describe investors selling their bitcoin at the first sign of trouble, often at a loss. An example of using it in a sentence might be: “Elon Musk has a lettuce hand because he sold 75% of Tesla’s bitcoin holdings in Q2.”

The above statement is not just an example; it just happens to be the truth. During Tesla’s quarterly earnings webcast last week, Musk admitted to dumping about $936 million in bitcoin to raise cash amid concerns about an economic pullback from China’s pandemic lockdown. The CEO said he sold to “realize gains,” but some people online were seriously skeptical.

To be fair, Musk added that he’s open to buying more in the future. But to many bitcoin fans and advocates, his decision to sell it feels like a betrayal — especially since he continues to hold Dogecoin, the meme coin created as a joke in 2013.

When Tesla originally announced in February 2021 that it had purchased $1.5 billion in Bitcoin, the crypto community saw it as marking the beginning of a trend of large corporations and other institutional investors holding digital assets on their balance sheets. The enthusiasm only picked up next month, when the electric vehicle (EV) maker announced that it would start accepting bitcoin as a payment method.

Those plans went on for more than a month before Musk suspended bitcoin payments. reason? He claimed that mining the asset consumed too much energy and emitted a lot of greenhouse gases.

We now know that Musk’s concerns, while valid, were and are not true. Some might call them FUD, or Fear, Uncertainty, and Doubt.

Bitcoin miners are ‘buyers of last resort’ when it comes to sustainable energy

Musk is right in one respect: Bitcoin mining is, without a doubt, energy-intensive, and will only get more energy-intensive as the difficulty rises.

He was wrong by saying that Bitcoin mining is dirtier than other industries. The truth is that the average institutional-scale miner uses more renewable, non-carbon-emitting energy sources than any large country on Earth.

Below are the results of a second quarter survey of members of the Bitcoin Mining Council (BMC), of which HIVE Blockchain Technologies is a founding member. According to the data, sustainable energy sources (wind, solar, hydro, geothermal, etc.) make up an impressive 66% of BMC members’ electricity portfolios. For the entire global Bitcoin network, it is closer to 60%. No G20 country comes close to using this level of renewable energy as a percentage of total energy use.

As many others (including myself) have pointed out, when it comes to renewable energy, large Bitcoin miners are often the buyer of last resort. They often consume a lot of electricity that would otherwise go to waste during off-peak hours. This makes sustainable energy more competitive and will encourage further deployment of wind and solar energy.

Dennis Porter, CEO of the Satoshi Action Fund, whose mission is to educate policymakers on the merits of Bitcoin, goes further. In a recent tweet, he said that bitcoin mining will one day “become a huge part of the grid, and if they try to ban it, we’ll all lose steam.”

Still, Tesla has no plans to start accepting bitcoin as a payment method again. The only digital asset it accepts is Dogecoin, whose market cap is only about 2% of Bitcoin’s.

Shanghai lockdown is a challenge for Tesla in the second quarter

Still, we love Tesla. The lockdown in Shanghai was a big challenge for automakers in the second quarter, with profits down from the previous quarter. However, now that factories are back up and running, we expect the company to see stronger results when it reports in the third quarter.

Like tech and luxury stocks, of which Tesla is considered a member, shares have fallen into bear market territory this year amid rising interest rates, recession fears and global supply chain issues.

Global Bitcoin adoption to reach ‘parabolic phase’ in 2030

Tesla’s suspension of bitcoin payments has raised questions about the viability of the digital asset as a currency and a widely accepted medium of exchange. More and more companies and retailers will use your bitcoin, but so far, relatively few transactions have been made using the cryptocurrency. According to one source, Bitcoin currently processes only about seven transactions per second, compared to Visa’s 1,700 and Mastercard’s 5,000.

But new research from blockchain infrastructure firm Blockware Solutions suggests that won’t be the case forever.

In a June report, the company looked at historical adoption trends for some previously disruptive technologies, including automobiles, radios, the internet, smartphones, and more. Although the rate of adoption varies in these cases, one thing is certain: once adoption reaches 10% of the population, as penetration shifts from “early adopters” to “early majority” and finally to “late adopters” , the growth becomes “parabolic”. most. “

Long story short, Blockware predicts that global Bitcoin adoption will exceed 10% by 2030. After that, growth could become parabolic, eventually reaching 80% of the population in the 2050s.

As a reminder, the Bitcoin supply is capped at 21 million. Divide that into 8 billion people, which is the number the world’s population is expected to reach later this year. The model above suggests that owning just one full bitcoin and holding it for the long term will ultimately yield not only life-changing wealth, but generational wealth.

Did you miss HIVE Blockchain’s fiscal 2022 results? Click here to watch the replay!

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