Despite the Hype, Only 7% of US Residents Have Bought Bitcoin
Despite the hype about Bitcoin (BTC), data published by Statista indicates that only 7% of US residents have used the king of crypto. This implies that latest investors in Bitcoin remain in beginning phase of growth.
Dan Tapiero, who co-founded 10T Holdings, opined that Bitcoin still remains at its “birth” phase, considering that it is a relatively new asset class. He tweted:
“It’s still so early for Bitcoin. Still at the birth of a new global asset class.”
In the years ahead, the considerable growth potential of Bitcoin will enable it to transform into a proven store of value, similar to gold.
If that is the case, then investors expects its valuation to rise exponentially over the next ten years.
Presently, overwhelming demand for Bitcoin is from investors who consider BTC as gold 2.0. Investors trust Bitcoin would ultimately transform into a safe haven asset.
Subsequently, institutional investors have increasingly bought Bitcoin in the past few months. MicroStrategy and Stone Ridge, for example, bought Bitcoin worth $425 million and $110 million, respectively.
It’s still so early for #bitcoin
Still at the birth of a new global asset class. pic.twitter.com/pIliolyFpS
— Dan Tapiero (@DTAPCAP) October 19, 2020
However, if the retail demand for the numero uno crypto in terms of market cap rises simultaneously in all key regions across the globe, it could spur exponential growth of Bitcoin.
Data provided by Statistica indicates that there are only six countries which have over 10% of population as Bitcoin users. The top countries with respect to Bitcoin users per capita are Vietnam, Nigeria and South Africa, the Statista Global Consumer Survey identified.
Tapiero stressed that the poll does not take into account all countries, implying that big cryptocurrency markets could have been missed. For illustration, South Korea is not a part of the list in spite of being the world’s largest Bitcoin markets. He stated:
“It’s a survey of select countries. It’s not a straight top to bottom survey. IE there are countries that belong on this list that are not listed.”
Of late, the Bitcoin exchange and framework for fiat on-ramp have got better throughout the Europe, the US and Asia. Nevertheless, there are still several countries that have a scarcity of dependable exchange framework as of date.
Canada, for example, has a dearth of regulated dependable domestic cryptocurrency exchange other than Coinbase. After the exchange and fiat on-ramp framework gets set up completely, then it would turn out to be simple for retail investors to step into the market.
In the absence of exchange-traded funds (ETFs) and top bank custodians, users may have to use cumbersome procedure of using cryptocurrency exchanges. Notably, a handful of cryptocurrency exchanges have made it compulsory for wannabe clients to go through an in-depth KYC (Know Your Customer) verification process before transferring funds for purchasing Bitcoin.
Per se, only when there is an enhancement to the framework to accept retail investors, the wider mainstream population would probably wrestle to get into the cryptocurrency market. The long-term forecasts of Bitcoin broadly alter, anywhere between $20,000 and $1 million.
Three days before, founder of the Real Vision Group, Raoul Pal, trusts that Bitcoin is moving towards the $1 million mark. At that price, the fully diluted market cap of Bitcoin will be roughly $21 trillion. That would be higher than twice that of gold’s prevailing market cap of $9 trillion.