Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
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2018 was a rough year for the cryptocurrency markets. The price of Bitcoin and the altcoins tumbled by more than 80%. That in itself is not good news, but remarkably it has not stopped the growth of cryptocurrency adoption. Leading companies in crypto have been building and making acquisitions during this long crypto winter, institutions have been showing more and more interest and governments are starting to play a more active role in cryptocurrency regulations. This, it seems, is just the beginning.
Ways in which cryptocurrency adoption is growing
Investment companies investing in crypto
In a recent show by Ran NeuNer of CNBC’s Crypto Trader, it was revealed that companies are investing in the cryptocurrency space – just not in the same way as crypto traders. Companies and institutions are investing in blockchain companies, not necessarily in coins or tokens. Businesses are a key component in any economy, and businesses looking to adopt is massive news.
Top Universities offering blockchain courses and investing in crypto
Top universities have been embracing blockchain technology and starting to offer courses touting blockchain as the 4th industrial revolution. Endowment funds of top American universities have reportedly made investments in cryptocurrency funds. Just last year universities with the prestige of Harvard University, Stanford University, Dartmouth College, and Massachusetts Institute of Technology (MIT) invested millions of dollars into blockchain and crypto funds.
Retirement funds investing in crypto
Canada has a Bitcoin fund, the FBC Bitcoin Trust which was grunted mutual fund trust status allowing to invest via retirement accounts and other government-registered accounts.
Meanwhile, American pension funds are starting to invest in blockchain and cryptocurrencies through investment firm Morgan Creek Digital who have crypto-focused hedge funds. You can read the statement released by the Fairfax County’s Retirement Systems (FCRS) in the state of Virginia pertaining to their investing in blockchain here on their website.
Countries recognising crypto
Indonesia recently introduced new legislation recognising Bitcoin as a commodity, this new legislation led to Bitcoin volumes doubling in the country on the peer-to-peer platform local Bitcoins Sometimes it’s the citizens that recognise crypto, for example, Bitcoin trading volumes have been increasing in Venezuela because of their countries economic turmoil due to hyperinflation. Since their people can no longer depend on their local currency, they have turned to Bitcoin.
According to peer-to-peer platform, Paxful Nigeria and Ghana, Bitcoin volumes have been growing despite the crypto winter. They managed to triple their Ghanaian user base and double their Nigerian customers in 2018. It is becoming clear that citizens of third world countries definitely see a use case in crypto even if their governments have not caught up yet in terms of regulation.
Growing number of Bitcoin ATMs
The number of Bitcoin ATMs around the world doubled last year despite the bear market. It’s estimated that 6 new devices are installed everyday around the world with over 4000 bitcoin ATMs now active around the world.
New 24/7 television news channel dedicated to crypto
Up until recently, CNBC’s Crypto Trader has been the crypto markets only dedicated television show covering the cryptocurrency space. Now, new blockchain focused channels are popping up. BlockTV, is a new tv channel fully dedicated to bringing blockchain technology news 24/7. All these adoption trends are signs that people believe crypto is here to stay. Many companies are using this crypto winter to build their platforms in preparation for mass adoption that is expected in what is called the 4th industrial revolution. These signs might oppose the value of Bitcoin, but they seem to be a telling a very different, much more exciting story.