Bitcoin – safe haven asset and increased adoption
The number of wallets holding huge amounts of Bitcoin increased significantly in 2021. This suggested that more individuals were including Bitcoin as a long-term investment. According to an FXEmpire article published in early 2022, 98% of digital asset investors will double their investments, especially when it comes to the Bitcoin.
Cryptocurrencies have also been incorporated into the products of a number of prominent organizations and institutions around the world. In the US and UK, PayPal users can purchase Bitcoins. Even some Wall Street companies are considering allowing Bitcoin transactions in their ecosystem.
Bitcoin has also shown its ability to withstand crises. The COVID-19 pandemic is an example. While equity markets would plummet in March 2020, Bitcoin appreciated substantially, becoming a active refuge at the gold stage. This has the effect of favoring a certain automatism among investors who will not hesitate to buy Bitcoin during future crises to protect themselves from the fall of equity markets.
Bitcoin technology is still very young
It is too early to speak of a delay from a technical point of view. Take artificial intelligence for example, since its infancy in the 1950s, we have yet to reach widespread use in everyday life. Most applications are limited to processing large amounts of data and quantitative analysis. Experts still felt that we are still in the early stages of AI adoption.
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Leaving aside the price of Bitcoin, and focusing only on blockchain technology and decentralized finance (DeFi), these notions are completely new. As use cases develop, institutions will adopt Bitcoin and its value will appreciate, regardless of its price. The management company Ark Invest plans a share price of $1.36 million per BTC by 2030.