Is Bitcoin Dead?
Amid the declines, the media has once again begun to write about the death of bitcoin. But, is this just another crash in the volatile cryptocurrency market, or is this the beginning of the end for this alternative asset class?
According to 99bitcoins data, BTC has been called “dead” at least 461 times since its launch. There have been 21 such cases in 2022 alone.
However, is this the end of bitcoin? Looking at the situation historically, it is not at all. Indeed, bitcoin has already experienced 50% declines (or more significant) at least six times in its career.
In fact, this is how every cycle in history has looked like. First, there was a halving, and then the bull market in Bitcoin began. Next, investors who realised profits started investing in altcoins triggering the so-called “Altcoin season.” After reaching ATH, there were sharp declines, mainly caused by panic among retail investors.
Now the situation is admittedly different. The market has seen the emergence of many institutional players, who collectively hold a massive percentage of the supply and are heavily leveraged. Nevertheless, two things point to the fact that bitcoin is here to stay – soaring adoption and the optimism of crypto enthusiasts.
Growing Adoption
The current situation of the cryptocurrency market is different from what it was a few years earlier – mainly in terms of adoption. Who would have thought of spending bitcoin directly or storing it in the wallets of payment giants before? During previous bull markets, huge corporations did not hold it on their balance sheets either.
In general, the adoption of cryptocurrencies is a phenomenon, so to speak, of the “absorption” of digital currencies into the economy or other spheres of everyday life. The stronger this process becomes, the more investors and ordinary consumers, for example, will know what bitcoin, blockchain or Ethereum is and how to use this type of technology.
Cryptocurrencies nowadays can be compared to websites in the 1990s. Back then, many people knew what websites were, except that it was not common knowledge. Today, every person, even older, knows what the Internet is. A similar fate may be awaiting cryptocurrencies. But how do we check the level of adoption? Where can you see it best?