Bitcoin adoption: The trends making the crypto more popular, Crypto guide, Cryptocurrency payment
Bitcoin Adoption: The Trends Making The Crypto More Popular
9 May 2023
Bitcoin, the most widely recognized cryptocurrency in the world, has been experiencing a rather difficult time over the past year. While 2022 came with several challenges as prices continued to drop, it hasn’t all been smooth sailing in 2023 either. Calls for increased regulations have caused several crypto-friendly banks to have to cease all operations, and, as a result, values have experienced fluctuations yet again. Investors have had to discover ways to create the right strategies that could help take their portfolios to the next level and safeguard the capital they had already invested.
But despite the changes Bitcoin went through, analysts are noticing renewed interest in the digital asset environment. There’s substantial discourse surrounding the adoption of Bitcoin on a larger scale and the introduction of cyber money in several institutions, businesses and organizations. Here are some of the trends and market movements driving the change.
The Lightning Network is a payment protocol operating on top of the Bitcoin blockchain. Its purpose is to facilitate faster transactions and act as a scalability tool. This is very important within a decentralized network, as the system contains large blocks of data that can cause processes to lag. Although it is a relatively new solution, Lightning already offers many products and projects in several areas, including wallets, payments and gaming. Some of the fundamental aspects of the blockchain, such as the functionality, infrastructure and rewards, will also benefit from the changes.
The protocol enables the creation of peer-to-peer payments between the two parties involved. The channel permits the participants to perform a virtually unlimited number of monetary exchanges that are cost-effective and much faster. Lightning behaves as a self-standing ledger that doesn’t disrupt the Bitcoin system in any way. It can include all types of transactions, from the very large to the smaller payments for cheap goods and services, such as purchasing coffee or any other small items.
In this sense, the traders can transfer Bitcoin without waiting for the approval of the leading network. Since the layer-2 system doesn’t need to be validated by the nodes, transactions are sped up. So far, crypto exchanges haven’t discussed in great detail when they will incorporate the system within their own networks, but it is sure to happen shortly.
The integration of cryptocurrencies as legal tender has been controversial, following the example of El Salvador. The international community has delivered mixed views of the move. While some believed it to be a positive thing that will facilitate easier access to monetary funds for the general public, others have expressed concerns regarding cryptocurrency’s famed volatility, the significant environmental impact, as well as concerns regarding the government’s management of the situation and the possible lack of transparency.
Recently, the country has adopted a law that is set to regulate the issuance of other digital assets. And while the decision to adopt crypto as legal tender is still met with composite reactions, introducing cryptocurrencies to stand alongside fiat currencies is a different matter altogether. In this regard, most nations agree that the positive aspects greatly outweigh the possible negatives. Nigeria is one of the latest counties that has discussed the probability of adopting a regulatory framework that could facilitate comfortable Bitcoin adoption within the country.
The Central Bank of Nigeria is set to offer a framework for Bitcoin adoption as part of its “Payments System Vision 2025” program. Not very long ago, the financial institution had taken a very different view of the matter, banning cryptocurrencies and related transactions, voicing concerns that the digital asset could potentially be used to power fraudulent activities such as money laundering and terrorism. The ban was said to not have any negative effect on fintech, however.
Now, the situation appears to have changed, and Nigeria is expected to soon pass a law that will legalize BTC and altcoins. Despite the previous ban in 2021, reports listed the country as having one of the world’s most significant volumes of peer-to-peer transactions. Since then, it has begun to see that cryptocurrencies are here to stay, so it is essential to provide them with a safe framework in which to develop. Only in this way can the Nigerian Bitcoin market develop and become more efficient. It can also provide a solid foundation for the development of innovations that can further its progress and the progress of Bitcoin worldwide.
While the U.S. presidential elections are still some time away, the news has begun discussing the possible candidates already. Among them is environmental lawyer Robert F. Kennedy Jr., known for his contentious opinions during the Covid-19 pandemic. The potential presidential candidate has filed the necessary paperwork with the Federal Election Commission and is set to run as a Democrat.
Some have expressed the opinion that this presidential bid would be beneficial for Bitcoin, as Kennedy has spoken about the necessity of the asset remaining on the market. He had taken a more radical stance towards the crackdown currently occurring on the market, drawing a parallel to a somewhat similar event back in 1933, when the Treasury removed the right of ordinary U.S. citizens to trade gold, with the exception of collector coins or specific jewelry items. Kennedy believes that the changes could threaten investors’ financial privacy and autonomy and infringe on their portfolios.
However, it remains to be seen how well the crypto market and the investors themselves will respond to this message.
The bigger picture
When considering the possibility of larger Bitcoin adoption, it’s important to put things into perspective. In 2022, the market went through some difficult times, and the crypto environment is yet to fully recover from the aftershocks. There are various ways in which the industry could still be disrupted, with the addition of brand-new tech innovations, as well as the push for regulations coming from both the United States and the European Union.
Yet, with so many positive changes underway, too, it’s almost certain that the financial ecosystem will continue to record increasing Bitcoin adoption. It’s only a matter of time before it happens.
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