Crypto Adoption May Not Be Mainstream Yet, But Growth is Undeniable
If you asked someone in 2013 what the Bitcoin/cryptocurrency ecosystem would look like in 2019, they probably envisaged a future where they procure housing, food, and everything else with seamless cryptocurrency payments. Unfortunately, the market hasn’t scaled to this level yet, but as reported by Bloomberg, adoption is growing and is highly correlated with the price cycle, November 6, 2019.
Usage and Growth Potential
Chainalysis dove deep into how cryptocurrency is being used, and for what goods and services. HODL-ing would indisputably take up a majority of coins, but payments aren’t negligible.
Bitcoin, which accounted for 89 percent of all crypto payments, is resting at a 3x gain from its yearly bottom. The analysis, which focuses on the payment trail, found that payments growth tends to explode in periods where there is a significant price rise. Relative to 2018, 2019 has been a very fruitful year for crypto.
Estimates from Chainalysis put the daily crypto commerce volume in the range of approximately $6 million per day, which amounts to roughly $2.19 billion annually (at the current rate).
Between January and July 2019, the transaction volume of payment processors like BitPay increased by 65 percent. Sentiment has picked up for cryptocurrency on the whole – not just Bitcoin.
The research claims to have analyzed other top cryptocurrencies like Bitcoin Cash, Litecoin, and Tether (no Ethereum).
According to a senior economist at Chainalysis, trust in crypto is growing. Given the current trajectory and the magnitude of awareness efforts/campaigns, there is a strong case that the next few years in crypto will be a revolutionary era.
Tip of the Iceberg
The research mentioned above is backward-looking, as it looks at how the market has acted in the last year in comparison to the first half of this year.
Making this macro picture rosier requires a forward-looking analysis as well. Bakkt’s consumer app with native Bitcoin support is set for testing with Starbucks in early 2020, Ethereum’s DeFi stack is growing at a rapid pace, and processors like BitPay are extending crypto support into new, untapped cryptocurrencies.
Dire economic conditions in certain markets and retail adoption efforts by the likes of Abra, and more, in thriving emerging markets, will all add nuance to market growth in the next year.