Most cryptocurrency watchers have indicated time and time again that mass adoption will be the key that will launch Bitcoin's market capitalization to the trillion dollar range. However, an analyst believes that Bitcoin's future looks promising and bright, even if it doesn't achieve mass adoption.
Crypto juggernauts like Binance, Grayscale, and Coinbase have built commendable infrastructure in an effort to appeal to the masses. However, the overall investment community still has a negative perception of bitcoin.
For example, over the weekend, famous Harry Potter author JK Rowling set fire to cryptocurrencies on Twitter after she stated that she did not understand bitcoin. Then he asked someone to explain the digital currency to him.
As expected, the crypto community took the golden opportunity to educate the best-selling British author on bitcoin. Most of them even used Harry Potter terminology to paint a clearer picture for Rowling. Interestingly, Elon Musk, founder of Tesla and SpaceX, also weighed in on the conversations while giving his own description of the flagship cryptocurrency. Unfortunately, this Rowling incident highlighted an ugly truth about the key problem cryptocurrencies are currently facing: inadequate education.
Regardless of the obvious lack of concrete understanding of Bitcoin by the masses, Gabor Gurbacs, analyst and director of digital assets at VanEck, argue that Bitcoin is not for everyone and that is fine.
Gurbacs goes on to point out that only 1% of wallets have gold despite the fact that it has been around for decades. However, the aggregate market capitalization of the yellow metal is currently approximately $ 8 trillion. As such, it is not an illusion to expect Bitcoin to reach a trillion dollar market cap, even if it only gets moderate adoption.
#Bitcoin isn't for everyone and that's okay. Only roughly 1% of portfolios hold #gold and gold market cap is in the $ 8 trillion range! It’s not absurd to believe that Bitcoin will go to the trillions range even with moderate adoption.
– Gabor Gurbacs (@gaborgurbacs) May 18, 2020
Stock-to-Flow creator agrees with Gurbacs
The creator of the well-known stock-to-flow model, Plan B, agrees with this notion, citing that "mass adoption is overrated" in his opinion.
Of course, bitcoin has attracted a lot of new investors with each passing day. This can be evidenced by the number of new bitcoin addresses They have almost doubled since January 2020. This is presumably because the crypto asset has outperformed virtually all other assets so far this year. Meanwhile, Wall Street hedge fund managers are hedging themselves with bitcoin exposure.
All that said, the fact remains that Bitcoin has been attracting the attention of high-profile investors lately. If such investors invest heavily in BTC, the iconic cryptocurrency might not have to be conventional to achieve trillion-dollar market capitalization after all.