The Dual Adoption Curves of Bitcoin

 

Bitcoin was created over a decade ago and not many people would have guessed that it would be as big as it is today. BTC is the largest cryptocurrency today with the biggest blockchain size of more than 350 gigabytes.

 

The rise of bitcoin has been an interesting one, it has managed to gain worldwide recognition despite the initial criticisms, and based on its current trajectory, it will maintain this growth well into the future. The success it has achieved is based on its adoption. Let’s look at the two curves that have made it possible!

 

Contents:

General Reaction to Innovation

The Dual Adoption Curves

Asset

Network

What Is the State of Bitcoin Adoption Today?

Final Thoughts

 

General Reaction to Innovation

As a species, humans have always tried their best to improve their circumstances. The urge to make life easier has made us the most innovative organisms on the planet. We keep creating new concepts and technologies that make the world a more comfortable and convenient place for us.

 

Cryptocurrency is a technology that was created to make trade fairer for the common man. The leader in this movement was bitcoin which was created in 2009 by a Japanese student. In the years that have followed since its inception, bitcoin has managed to gather a huge following and this is the backbone of its success.

 

The number of worldwide users has continued to increase over the years. Although bitcoin has the biggest chunk of the users in the western world (with the US making more than $1,5 billion in exchanges), it is gradually making its way to the developing world. With this development, it is safe to assume that the influence is only getting stronger by the day. It is further amplified by the new cryptocurrencies that are being created these days.

 

Advancements in one type of technology can pave a way for another to become mainstream. Another important factor that has enabled Bitcoin to reach the heights it has to do with the development of mobile devices and computers. Nowadays, anyone can get access to a smart device. These gadgets play an important role in not only investing in cryptocurrencies like BTC but also spreading its influence on a global scale.

 

The Dual Adoption Curves

The acceptance and adoption of bitcoin are highly influenced by the dual adoption curves. In brief, these curves are referred to bitcoin as an asset and a network.

Asset

When bitcoin is referred to as an asset, its monetary value is what’s considered. Bitcoin represents a stored value that can be used to further an individual's wealth. This is almost identical to how gold is valued. We can list a lot of features that make Bitcoin an ideal means of trade but it's safe to assume that it will take more time for people to see the same value they see in physical assets like gold. In this regard, Bitcoin still has a lot to prove.

 

Network

When the concept of “the network “ is used to describe another part of Bitcoin’s duality, we look at it as a platform of exchange. And in this case particularly for the bitcoin cryptocurrency.  As a network, bitcoin provides the doorway for any internet user to use it as a currency. It is very important to draw the distinction between its nature as a potential currency and as an asset (store of value). With its role as a network (currency), bitcoin can be used by anyone with an internet connection to make payments to anyone who accepts its role as such.

 

 

What Is the State of Bitcoin Adoption Today?

Bitcoin is solely making its way to world domination. One of the main factors that influence the rate of adoption is its volatility. Although the potential to make a profit on an investment is great it is the chance to make a loss. Another factor is investor sentiment and a rapid increase in the number of users on the blockchain.

 

Currently, the bitcoin asset is somewhere on the s-curve. The exact point is influenced by various factors, one of the most influential being the number of users who actively use it. The most influential factor for pinpointing its location when bitcoin the network is considered is the number of internet users. As more corporations become open to the use of cryptocurrency the need for Bitcoin will proportionally increase. However, currently, we’re still in the early stages.

 

Final Thoughts

Bitcoins’ influence will continue to grow. Its nature as both an asset and a network is playing a big role in propelling it to further stages in the chain of adoption and global acceptance. Getting more people on board will require providing the right education to people who haven't fully understood it. Focusing on explaining and understanding its dual nature will play a key role in going beyond the s-curve and this can be achieved with the decade.

 

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