Bitcoin Adoption set to Skyrocket in 2019

bitcoin as a rocketship image with black background

2018 saw the Bitcoin price follow a downward trend in which some argue is still to bottom, however, despite downward price trends, evidence shows that Bitcoin adoption increased heavily over the past year.

New Singapore-based hedge fund Circuit Capital, is betting that Bitcoin adoption will continue to improve in 2019, paving the way for a new Bitcoin price breakout.

Bitcoin Adoption is Key to Predicting Future Price Movements

For investors who bought Bitcoin in late 2017, 2018 was a nightmarish rollercoaster. The Bitcoin price plummeted to $3,000 at one point. Moreover, although current prices seem stable, some suspect that they could fall further. There is good news, though. Namely, that despite falling prices, Bitcoin adoption increased exponentially in 2018.

Bitcoin price image with graph with white candels

The Bitcoin Adoption Curve is Growing

In 2017, John McAfee famously predicted that Bitcoin would reach $1 million in value by 2020. However, one problem has always overshadowed the McAfee Bitcoin price prediction.

At present, there are approximately only 3 million active users of Bitcoin worldwide. There are undoubtedly many more long-term investors. However, just 3 million individuals can be evidenced as using Bitcoin to buy real goods and services. Thankfully, this is changing.

In September 2018, cryptocurrency research group Chainalysis revealed that 1 million more Bitcoin are being held in active transaction wallets than in September 2017.

Also in 2018, retailers like Newegg, who already accept Bitcoin payments, started expanding operations to cater for increased demand in non-U.S. territories
In November, San Francisco and Singapore based Circuit Capital announced plans to launch a new Bitcoin hedge fund. Specifically, thanks to evidence that cryptocurrency adoption looks set to break new ground in 2019

Bitcoin on a traintrack

Using Bitcoin Adoption Data to Predict Future Prices

According to Circuit Capital, the Bitcoin price at any one moment is not an accurate indicator of future growth. Instead, Circuit uses evidence of growing Bitcoin adoption to predict future price movements. To do this Circuit Capital bases its price index on:

-Live Bitcoin statistics concerning the number of BTC coins in active circulation.

-Adoption rates among mainstream businesses.

-Search data from Google, concerning the popularity of different Bitcoin and cryptocurrency related search terms.

By looking closely at data collated from the above (and other) sources, Circuit Capital believe that Bitcoin adoption will continue to increase in 2019. Moreover, increased Bitcoin adoption will inevitably drive up prices.

astronaut on moon drinking beer with bitcoin logo looking at earth in space

Why Bitcoin Adoption Should Skyrocket in 2019 & 2020

Up until 2018, Bitcoin struggled to find legitimacy as a viable alternative to fiat cash. Bitcoin is secure and resistant to inflation. However, high fees, slow transaction times, and price volatility have deterred merchants from accepting BTC payments. Thankfully, this is changing.

Throughout 2018, Bitcoin and Litecoin development focused on the creation of a second layer Bitcoin payment protocol called Lightning. Now almost ready for launch, the Lightning network will facilitate near fee-free and almost instant Bitcoin transactions.

lightning network blockchain image

Lightning Capabilities

In July, Lightning network pioneers CoinGate demonstrated how the Lightning network could already allow users to use Bitcoin to buy a beer in Oslo, with transactions settling in just 1-second. Thanks to this and several other demonstrations, several brands have signaled that they will start accepting Bitcoin payments via CoinGate in 2019. These include:

-Swiss watch manufacturers Chronoswiss and Louis Chevrolet

-The gaming store

-Bitcoin hosting service Bitlaunch

-Adult entertainment websites like Livejasmin

Bitcoin in front of cipher image

Bitcoin Price Predictions for 2019 and 2020

Wall Street and Bitcoin investor Mike Novogratz, believes that broader Bitcoin adoption in 2019 will help push up the Bitcoin price, possibly to as high as December 2017 levels. Other estimates put the Bitcoin price at $51,000 by the end of 2020. Of course, even conservative Bitcoin price predictions fell short in 2018. For this reason, investors would still be wise to think very carefully before making any significant buying or selling plans.

If you are wanting to take advantage of the low price of Bitcoin and other cryptos in comparison to just one year ago, click here to start buying and selling easily today.