A MatrixPort report mentioned how bitcoin and cryptocurrency are at the edge of their mainstream breakthroughs.
A MatrixPort report indicated that global cryptocurrency adoption is making it big, with 7.51% of the world’s population now using the asset class. The report further indicated that the number could go beyond 8% in 2025, indicating cryptocurrency’s entry into the mainstream.
“As seen with the rise of personal computers, smartphones, social media platforms, and electric vehicles, surpassing the 8% mark often accelerates adoption, driven by network effects, increased viability, and reduced costs,” the report read.
While retail adoption has taken off for a while, MatrixPort associates the increased figure and potential to spike even higher with institutional adoption. Asset managers have played a tremendous role in legitimizing the asset class by integrating it into their offerings. For instance, as BTC and ETH ETFs (exchange traded funds) received the green light from the US Securities and Exchange Commission (SEC), numerous financial firms began offering the products at the drop of a hat.
Furthermore, BTC is poised to witness increased adoption, thereby positioning the entire market for unseen levels of adoption. The asset’s price is set to take off, considering its position as a store of value, which investors capitalize on during economic turbulence. With global events like wars and the US debt levels, investors are turning to BTC as a hedge against economic uncertainty.
Moreover, the BTC narrative has become a mainstream talking point on the road to the US presidential elections, with the Republican candidate Donald Trump expressing his backing for the asset and the crypto industry. His rival, Kamala Harris, has also expressed that she wants to support emerging technologies, including cryptocurrency and blockchain.
Crypto Adoption Still Witnesses Roadblocks
Despite the publicity the industry is receiving and the adoption from big-name institutions, challenges remain. That includes how regulators view the asset class. The US SEC has taken a stringent approach with anything cryptocurrency. The story is similar to numerous regulators in other nations. Still, some open-minded jurisdictions have opened doors for Web3 businesses to innovate. It remains a question if the regulatory tide will turn in important jurisdictions like the US to let the industry thrive.
Furthermore, the numerous scams and hacks observed by firms in the space thwart adoption, mainly in the retail section. On the institutional side, despite more players making an entry, market volatility is a concern. Large sell-offs could cause massive disturbances for asset prices.
