Will institutional adoption raise the Bitcoin price in the future?
As The Bitcoin halving materialized, we’re already onto the next thing that will impact Bitcoin and its prices in the future. The event has already made waves among investors who took advantage of the pre-halving prices and are now waiting for the perfect time to leverage their assets, while miners benefitted from massive transactional fees for a while until the market stabilizes.
Regardless, Bitcoin has a great future, and it will be shaped by several factors, including supply, demand, and media coverage. But maybe one of the most important attributes of Bitcoin’s price is the worldwide adoption rate by governments, institutions, and regular users. Therefore, when we’re making a Bitcoin prediction, we must consider how businesses plan to employ Bitcoin in the future. So, let’s see how such laws can affect the Bitcoin price.
Tesla is driving Bitcoin prices up
A few years ago, when Elon Musk got into cryptocurrency, its company made the decision to buy $1.5 billion worth of Bitcoin as it planned to accept it as payment for vehicles. Shortly after the purchase, Bitcoin prices boomed by 20%, and the trend made other companies, such as PayPal, want to experiment with Bitcoin.
After his event, Tesla became renowned as a company supporting emerging technologies like Bitcoin, and its actions made cryptocurrency more believable and safer for regular users. A similar situation happened when Elon Musk triggered a boom in Dogecoin prices, so we can say he contributed to crypto becoming more popular.
PayPal’s Bitcoin integration for users
PayPal is one of the most popular companies in the world for facilitating transactions. It caused a stir on the internet when it finally allowed users to buy and sell Bitcoin directly from the platform’s app. Only a few days after the announcement, the price of Bitcoin increased significantly to a three-month high, exposing it to the mainstream.
PayPal realized that cryptocurrencies are in demand, and providing a way for users to acquire or buy them easily would benefit them and the targeted audience. While UK users could only buy, hold, and sell Bitcoin, Americans can use payment balances anywhere, so even retailers can benefit from this improvement.
So, companies can drive adoption, but regulation is needed
One of the reasons why institutional adoption hasn’t happened much faster is the lack of regulation around the crypto industry. Many governments still don’t trust cryptocurrencies as reliable and transparent and are afraid to regulate such assets since they’re more complex than just stocks and bonds.
On the other hand, blockchain technology has been increasingly leveraged in companies and institutions as it provides plenty of benefits regarding data usage and protection. Regulation for blockchain isn’t necessarily needed, although using it requires hiring a professional whose training in innovative technologies can maintain network spaces transparent and secure.
At the same time, many governments have first employed taxing rules that require users to declare their income, but even that is not properly assessed, as many users reported not being provided clear paper-filling documents or guidance over how crypto should be filled out for tax.
Crypto needs effective implementation
Unfortunately, the approach to making crypto accessible and usable was a failure, as technological advancements are already challenging for many governments. Therefore, despite being an advantageous way for people to access financial resources, especially in developing countries, crypto has not yet been denied.
However, Bitcoin and other cryptocurrencies addressed the financial gaps in some areas, such as Africa, where people can use their phones and sim cards to buy and sell Bitcoin through an ambitious project. There are many other examples of people leveraging crypto, but since the government cannot control it, it’s widely considered too dangerous.
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