As a crypto investor with some experience under my belt, I find Willy Woo’s analysis intriguing and thought-provoking. The idea that Bitcoin could one day challenge the US Dollar in terms of market capitalization is not new, but Woo’s use of historical adoption curves to estimate when this might happen adds a fresh perspective.
An expert analyst has provided insights into when Bitcoin‘s expansion might surpass that of the US Dollar, based on its past adoption trend.
Bitcoin Needs To Grow Its Adoption This Much To Challenge The USD
Analyst Willy Woo has shared his insights in a recent publication on X, shedding light on the growing anticipation among financial professionals regarding Bitcoin’s potential.
As an analyst, I’ve observed that the financial community is increasingly viewing Bitcoin as an emerging asset class. However, its current market capitalization of approximately $1.2 trillion pales in comparison to the valuation of traditional asset classes, which are typically measured in units of tens of trillions.
According to Woo’s perspective, the financial community holds the belief that Bitcoin (BTC) will achieve the following milestones:
How about this instead?: Yet to be realized are these anticipations. To provide an approximate timeline, the analyst looks towards Bitcoin’s “adoption” trend. The following chart, presented by Woo, illustrates a comparison between Bitcoin’s and the internet’s adoption rates.
As a researcher, I have analyzed various studies on Bitcoin and cryptocurrency adoption to identify the correlation between the values on the adoption curve and the current percentage of the global population utilizing these digital assets. Woo has compiled these studies for my examination.
One method stands out among others for analyzing Bitcoin ownership: Glassnode’s grouping of addresses into “entities,” where each entity signifies an individual investor managing multiple addresses, and Cambridge’s statistics on authenticated exchange participants.
According to the analyst’s assessment, Bitcoin’s user base makes up approximately 4.7% of the global population based on the data presented in the chart.
As a crypto investor, I believe that if the S-curve of the internet is an accurate analogy for Bitcoin’s adoption, then we might be still in the early stages of its growth. Consequently, the number of users adopting Bitcoin could start to accelerate significantly from hereon.
What is the level of acceptance required for cryptocurrencies to challenge the US Dollar’s dominance, according to Woo’s perspective? He anticipates this milestone may be reached when the market share falls between 25% and 40%, which could possibly materialize in the 2030s.
As an analyst, I cannot predict with certainty how the adoption rate of Bitcoin will unfold in the upcoming years. However, it’s intriguing to contemplate the possibility that its trajectory might bear some resemblance to the evolution of the internet.
BTC Price
This week, Bitcoin experienced a dip below the $59,000 mark as its opening gambit. Yet, the cryptocurrency has bounced back and is now trading above $61,400. It remains uncertain whether this rebound will persist or if bearish trends will resurface imminently.
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2024-06-27 04:14