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How Bitcoin Adoption Can Be Propelled In The Age Of Stablecoins

Cryptocurrencies have come a long way over the last decade. It has become almost a household name in this day and age. People, who went long on Bitcoin as early as 2012 and 2013 have crypto riches to show for it. Those who caught the wave a bit later have made some considerable gains as well. Most people right now either have heard of Bitcoin and ignored it or are not quite clear on what it is and how it works. We at Monfex exist to help those already actively involved in crypto. We also support those who are yet to get into crypto. 

Monfex.com exists to not only facilitate trading but also to give visitors news on what is currently going on in the crypto world. If you follow our Monfex.com charts you will see that the price of Bitcoin is not as high as it has been in the past several months. This has frustrated many investors and traders, and also stoked curiosity in others. Traders who have a “what goes down must come up” mentality are buying this bottom. They are in anticipation of a spike north. Here traders are busy observing and going crazy about price action. And there are developers and other players looking into the technologies’ potential.

Last year saw a lot of news and chatter about crypto use cases and crypto adoption. The emphasis and push of crypto adoption in payment was quite high. Then there were stories of merchant adoption where people praised large retailers for allowing BTC payments. BTC payment adoption has slowed considerably this year, unfortunately. This has been due to dark regulatory clouds that have been above the space for a while now. The age-long volatility question has also not helped matters either because a lot of retailers find it difficult to deal with the fluctuating prices.

These uncertainties and toxicity have led to a steady rise in stablecoins. Sometime during last year, people used to feel the idea of stablecoins as unrealistic. Times have changed drastically since stablecoins are now being seen as the silver bullet that solves the volatility problem. The most popular stablecoin at the moment is the proposed Facebook Libra cryptocurrency. Though this stablecoin has been touted as one that has a lot of potential as a payments solution, it has received backlash. The US congress has put Facebook on the spot many times. It seeks to assess the impact of the digital currency to the existing financial order. It has also elicited international suspicion, with France and Germany openly resisting it.  

Though the Libra has potential, its future is uncertain because a lot of congressional and regulatory decisions have to be made. This has not stopped other stablecoins for making moves though. According to a report last week, Korean Won-backed Terra stable coin will be used for payments in 13,000 Korean shopping outlets belonging to Korea’s largest retailer CU. A Terra co-founder expressed delight in the development and went on to explain why the stablecoin was a much more desirable option than Bitcoin.

“Bitcoin adds volatility cost to settlements, which doesn’t work well with low margin biz like convenience stores. Will just be Terra for now!”

This all makes it look like the world’s largest cryptocurrency by market cap is losing its attractiveness in the eyes of users and investors. Those of you who are Bitcoin proponents and investors may be wondering what could encourage Bitcoin adoption. We at Monfex believe the following would propel Bitcoin adoption.

Considering Bitcoin’s store of the value element

Gone are the days when people just locked their money somewhere in their house. People are also increasingly moving away from storing fiat money in bank accounts. This is because bank accounts are risky and your money is in the hands of a third party. Bank accounts can be frozen, and a savings house can go under. When people start to think about Bitcoin’s security and potential to appreciate rapidly in value, they will overlook its price volatility. Slowly and surely, storing value in Bitcoin will become attractive.

Considering societal change and system friction

There is a reason Bitcoin became a thing in the first place. People are tired of the idea of a central entity controlling their money and having access to their identity and transactions. Bitcoin can be a solution to that. With more education on the decentralized nature of Bitcoin, they will adopt Bitcoin much faster. There is also a social push for financial inclusion by groups such as sex workers who have been maligned by the traditional financial system for a long time. A push by groups like sex workers could drive Bitcoin adoption since it will be seen as a readily available alternative.

The pressure of changing times

A good look at history will tell you that throughout the ages, civilizations have used some kind of money. It has been changing from generation to generation. People have always acquiesced to what’s new and what is easier to use. We have gone from using old bulky gold to nickels, to paper money, and now digital money is the new kid on the block. Digital currency is not just a fad; it’s also a sign of a new era in this civilization. Digital currencies like Bitcoin also make international payments easier and much cheaper.

Seeing Bitcoin as a hedge

When we begin to see Bitcoin as a viable hedge, then more and more people will get involved in Bitcoin. It’s not just about using Bitcoin for payments locally and internationally. It is also about holding Bitcoin as a significant part of your portfolio. We have had times in history where the economy has gone down. 

In such times where property and stock prices collapse, Bitcoin could just be the hedge you need to keep your net worth in the green. Its decentralized and independent nature means that there is very little correlation with their fiat counterparts.


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Coinpedia Staff

This is an official account of Coinpedia.org, used to publish guest posts including Press releases and other related news. It is also used to update information on wallet, tools and DEX.

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