Tuesday, May 10, 2022

Real Adoption of Bitcoin

Too much emphasis is always put on accepting bitcoin as payment, legal tenders to show the growth in adoption.

I think this is a completely incorrect way to look at adoption.

In any country, where you have a currency that hasnt completely gone to shit, it will always be better to pay for things using that currency/ credit denominated in that currency. This has the following benefits:

  • This makes taxes easier.
  • Lets you use technological advancements like apple pay/ upi in india/ and other mobile payments networks.
  • Lets you take benefits like purchase protection/ extended warranties/ credit card discounts.

Now Ill say what I think adoption really is. People holding bitcoin for what bitcoin is. Incorruptible, unconfiscatable property. If a person is keeping his long term savings in bitcoin, he is doing much more to further adoption than Gucci accepting bitcoin.

Metrics to measure this kind of adoption would be %population holding bitcoin and average time bitcoin is held. Also market cap moving average is a loose indicator of this.

Some events that would definitely mark an increase in adoption would be: - More countries allowing people to use bitcoin without capital gains taxes. - Apple letting you hold bitcoin in their wallet app. - Bitcoin friendly President in the US. - A G2 nation holding Bitcoin reserves. - Also if gifting bitcoin becomes a thing. People tend to hold on to gifts longer than the things they buy.


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