Bitcoin has seen considerable adoption this year, with the news of PayPal enabling the buying and selling of cryptocurrencies. MicroStrategy has also ignited the interest in Bitcoin, when the company announced that it was going to invest in Bitcoin and make it its primary reserve asset.
Square’s Bitcoin announcement also pulled its weight for cryptocurrency adoption as the firm purchased $50 million in Bitcoin in October. Other institutions also joined the Bitcoin crowd, with Fintech group Mode becoming the first UK publicly-traded company to purchase a significant amount of Bitcoin as part of its treasury investment strategy.
Apart from institutions, notable traditional industry veterans have also started to look into Bitcoin, with billionaire hedge fund manager Paul Tudor Jones advocating for the digital asset earlier this year, and recently said that digital currency would be a very common commodity in the next 20 years. Jones believes that Bitcoin is the “best profit-maximizing” asset, and due to the fact that the world will “crave new safe assets,” Bitcoin may largely benefit.
Another billionaire, Stanley Druckenmiller, has revealed last month that he also invested in Bitcoin, although it is not more than his investment in gold. He has warmed up to the fact that “Bitcoin could be an asset class,” and that the “Bitcoin bet will probably work better [than gold] because it’s thinner and more illiquid and has a lot more beta to it.”
Druckenmiller added that the world’s largest cryptocurrency is attractive as a store of value to millennials and the new West Coast line. He added, “It has been around for 13 years, and with each passing day, it picks up more of its stabilization as a brand.”
With Bitcoin’s adoption rate on the rise, and backed by the influence of many large institutions to date, it brings up the question of when Bitcoin would be more commonly used by the larger market.
How many people will own Bitcoin in 4 years’ time?
Crypto analyst Willy Woo recently highlighted that with the Bitcoin adoption rate witnessed in history, 30% of the world population would own Bitcoin (BTC) in 4 years’ time.
Woo highlighted “Moore’s Law,” which refers to the perception where the speed and capability of the world’s computers increase every couple of years. Woo tweeted:
“Surprising fact: Assuming Bitcoin adoption rate continues its present 2.2x per year “Moore’s Law” of growth (which it has for 10 years so far), then 30% of the world population will own Bitcoin in 4 years time.”
What does Moore’s law have to do with Bitcoin?
Bitcoin’s price to reach $100,000 if it follows Moore’s law
A Harvard academic and Bitcoin investor, Dennis Porto previously said while citing that Bitcoin’s price could reach $100,000 if it follows Moore’s law. The basic definition of Moore’s law is the observation that the number of transistors in a dense circuit doubles every two years approximately.
According to Porto, this could be applied to any digital technology that is growing exponentially. With the evolution of Bitcoin’s underlying technology, blockchain, the price of Bitcoin could also rise based on the pace of the technology’s advancement.