A look at the growth of Bitcoin shows that the number of cryptocurrencies in the world has experienced what can be called rapid growth. The number of unique and active Bitcoin addresses that are found in crypto exchanges shows that Bitcoin adoption is faster than how the internet was.
Many multi-billion dollar companies in the world such as Tesla, Square and Microstrategy have taken Bitcoin adoption to another level. Countries are not left behind too with countries like Panama, El Salvador, Paraguay and Guatemala accepting Bitcoin. El Salvador even went as far as making Bitcoin its official currency, together with the US dollar.
A lot of people have compared the growth of Bitcoin adoption to that of the internet and here is a careful analysis of both.
Internet Adoption Versus Bitcoin Adoption
The Bitcoin adoption and that of the internet was different although the two had one thing in common. Both the internet and Bitcoin faced a lot of criticism during the early stages of its adoption, critics called it a fad. However, there has been huge growth between the two and more users continue to make use of them.
A History of Internet Adoption
Private individuals and entities started gaining access to the internet in the 1990s and this helped to improve business operations and communication all over the world. This was what led to the quotations of “the world is a global village” and in the 2000s, the number of people that made use of the internet doubled year by year.
Only about 0.4% of the world’s population was connected to the internet by 1995 which was about 16 million people according to data provided by Internet World Stats. However, in the early 2000s, the number grew to about 5.8% of the world’s population at 361 million internet users.
With the introduction of new technologies, the adoption rate of the internet was increasing by the day and by 2010 about 1.971 billion people were already making use of the internet according to Internet World Stats. These figures showed that about 28.8% of the world’s population was already making use of the internet.
The adoption rate of the internet has more than doubled from 2010 to 2020, with about 62% of the population of the world making use of the internet according to data provided by Internet World Stats.
Bitcoin Adoption Rate
Many people have likened Bitcoin to the internet of the 2000s, and this is because of some of the characteristics that both of them share. Since the inception of Bitcoin, it has faced a lot of criticism and it is mainly based on the fact that it is decentralized.
Despite all the criticism it has received, Bitcoin adoption has been increasing among individuals, companies and countries. Companies such as Visa, Mastercard, PayPal, Tesla, Microstrategy, and many others are leading the race of companies with a high adoption rate of Bitcoin. Microstrategy has more than $1 billion cryptocurrencies in their assets and Tesla has more than $1.5 billion worth of Bitcoin in its assets and they allow its customers to buy its products with Bitcoin.
Bitcoin adoption is not limited to private entities only, even countries like El Salvador have made Bitcoin legal tender. In El Salvador, about 30% of its population has a bank account compared to the 50% that makes use of the government’s Chivo cryptocurrency wallet.
This Bitcoin adoption chart helps to simplify how far the flagship cryptocurrency has gone compared to the internet of the 2000s. A look at the Bitcoin adoption chart vs the internet will clear up a lot of arguments.
The internet came out in the late 1980s but only began a massive adoption in the 2000s. Cryptocurrency adoption seems to be faster than that of the internet and it is predicted that by 2025, Bitcoin will have more than 1 billion users. This figure shows that the pioneer cryptocurrency adoption will achieve what the internet achieved in a shorter time.
Reasons For The High Bitcoin Adoption Rate
There are reasons why there is a high rate of Bitcoin adoption by individuals, companies, and countries and it includes:
Decentralization of Bitcoin:
Sometimes the adoption rate of Bitcoin is attributed to the fact that it’s decentralized. This means that it is not under the control of any central body such as governments or financial institutions.
It is easier to access the financial information of people making use of the internet or bank than it is to access information on the blockchain. Bitcoin makes use of encryption systems that can only be accessed by those it was meant for.
This is another feature that drives the growth of cryptocurrency adoption. Bitcoin removes the middleman that stands in the way when people want to send and receive money. With Bitcoin sending and receiving funds is entirely streamlined.
One of the reasons that Bitcoin adoption is growing by the day is the amount of privacy it offers. Users can send and receive money without revealing their identities.
Both the internet and Bitcoin have many uses, but their acceptance and growth were different. Bitcoin adoption is proving to be faster than that of the internet of the 2000s and more individuals and governments are adopting Bitcoin as the day goes by. With the introduction of new technologies in the cryptocurrency, maximum security and privacy will be guaranteed and this will help to increase the adoption rate of Bitcoin.