The last twelve months have been monumental for Bitcoin, solidifying the asset as a global store of value for investors of all classes.
However, according to one analyst, this is just the beginning. Renowned on-chain analyst Willy Woo states that crypto is still only at the beginning of mass adoption when comparing Bitcoin’s adoption rate to the internet.
Will Bitcoin and Blockchain Become the Internet of Finance?
Charted out on an adoption curve, Woo paints a picture of what to expect from Bitcoin in the years to come. At current levels, crypto adoption is the same as where the internet was in 1997.
This was a time before Google, Amazon, and pervasive smartphone usage that gave everyone a personal computer in their pocket. Based on Woo’s findings, Bitcoin’s user base is growing even faster than the Internet’s. At that rate, this would bring Bitcoin to one billion users in the next four years. Something Woo equivocates to global internet usage in 2005.
Breaking Down the Numbers
Woo appears confident of Bitcoin’s (BTC) future adoption rate. Additionally, he thinks the network is much more equitable than the data leads people to believe.
He states that almost 40% of BTC owners are ‘small’ holders, which points to a fairer distribution compared with fiat currencies. He also points out that this trend will likely continue.
The data shows that small holders are growing strongly as well as ‘whales’ (institutions). The uptick from both sides of the financial spectrum suggests broadening adoption rates.
The Ultimate Store of Value
Satoshi Nakomoto created bitcoin to be a decentralized store and transfer of value. But it seems the former is taking the lead. Although bitcoin should work as cash, current investors view it more as gold.
As a store of value, the Bitcoin narrative is already propelling it to new heights, gaining adoptions from all walks of life. Even if bitcoin doesn’t become the ultimate digital currency, it provides an opportunity to hedge against government-controlled fiat inflation.
Bitcoin’s network effects continue to grow. Like Internet adoption before it, as the network grows, it should continue to attract more users at an even higher rate.