Based on a study by Fidelity Digital Assets, increased acceptance and use of Bitcoin (BTC) by countries and governments could significantly contribute to its expansion in the year 2025. The research indicates that 2025 might mark a crucial turning point in the widespread adoption of BTC.
Nation-State Adoption To Make Bitcoin Mainstream
2024 witnessed substantial advancements in Bitcoin adoption, encompassing various milestones such as the initial approval of U.S. spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) during the early part of the year. Later in the year, discussions arose about the possibility of a strategic Bitcoin reserve due to the pro-cryptocurrency stance of presidential candidate Donald Trump, who ultimately won the November election.
According to a recent study by Fidelity Digital Assets named “2025 Outlook,” it is anticipated that as more retail and institutional investors can invest in Bitcoin via ETFs, the next significant surge in Bitcoin adoption may originate from various nations. The report indicates:
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Fidelity Digital Assets’ new report, titled “2025 Look Ahead,” proposes that with retail and institutional investors now able to invest in Bitcoin through ETFs, the upcoming wave of adoption is expected to stem predominantly from nation-states. The report underscores:
2025 is projected as the year when we might witness increased acceptance and adoption of bitcoin, as more countries, central banks, government funds, and treasuries are likely to explore strategic investments in this digital currency. It’s possible that they will learn from the strategies used by Bhutan and El Salvador, which have seen significant returns on their bitcoin positions within a short period.
In summary, the widespread adoption of Bitcoin (BTC) by governments and countries could serve as a significant catalyst, pushing this leading digital currency deeper into mainstream usage in 2025. As Matt Hogan, Research Analyst at Fidelity Digital Assets suggests, it might be riskier for nations not to invest in BTC compared to making that investment, potentially leading to missed opportunities down the line.
Hogan pointed out several key issues like escalating inflation, devaluation of currencies, and increasing budget shortfalls, suggesting that neglecting Bitcoin investment might prove to be a pricey oversight for nations worldwide.
Additionally, the analyst mentioned the Bitcoin Bill of 2024, sponsored by U.S. Senator Cynthia Lummis, that proposes setting up a government-held Bitcoins stockpile as a strategic reserve. It’s unclear if the Trump administration will take up this initiative.
If this legislation passes, it might initiate a chain reaction in both politics and finance, possibly compelling other countries to adopt similar strategies. It’s worth noting that states amassing Bitcoin may choose to do so covertly to prevent artificially increasing its value by attracting more investors.
Countries Already Planning To Establish BTC Reserves
Countries like El Salvador and Bhutan have already created national Bitcoin reserves, and other nations appear ready to follow suit. By December 2024, a Brazilian federal deputy has proposed legislation aimed at enriching Brazil’s National Treasury by investing in Bitcoin.
In a similar vein, it’s rumored that countries such as Chile, Canada, and the Czech Republic are contemplating establishing their own strategic Bitcoin reserves. Currently, Bitcoin is trading at approximately $94,190, marking a decrease of 3.4% over the past 24 hours.
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2025-01-09 16:11