Long-Term Narrative: Bitcoin Adoption

Today, the entire crypto market is only worth about $370 billion.

And right now, 35–50 million people own crypto.

Sounds like a lot but that’s puny.

That’s 0.6% of the world’s population.

But we’ll see hundreds of millions (and possibly billions) of people flood into this space in the coming months and years.

Every major institution that matters has embraced bitcoin and is building the products and services to bring it to their customers.

In its latest earnings report, Square’s Cash App reported $875 million in bitcoin revenue – a 600% increase from the previous year.

PayPal plans to roll out crypto trading to its 325 million users.

Robinhood Crypto offers commission-free trades on seven cryptos to its 13 million users.

Even Mastercard and Visa recently announced projects and collaborations involving crypto.

More importantly, regulatory changes will make it easier for people to use crypto. Last month, the Office of the Comptroller of the Currency (OCC) issued guidance that banks can now store and work with cryptocurrency.

The OCC regulates all U.S. banks. So it’s one of the most powerful federal agencies in the country.

The U.S. banking system alone touches the lives of over 300 million Americans. And it holds north of $20 trillion in assets. If bank customers allocate just 1% of their accounts to bitcoin… bitcoin’s market cap would double.

Digital currencies are the future.

Stop thinking about daily volatility.

Focus on the big picture: A half-billion people are coming into this asset class over the next few years.

When you go from 35–50 million users up to 500 million users, you can’t help but make some money.

Bitcoin can go up 50% one day and drop 50% the next… just on daily headlines that have nothing to do with bitcoin’s long-term driver of mass adoption. So don’t let the day-to-day price movements shake you out of your positions.

The shift from a small market to a large market is the primary narrative you should be paying attention to.

So stay focused on the big picture: mass adoption. And don’t worry about the day-to-day fluctuations.

That was a very interesting read, thank you!

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