What determines the adoption of Bitcoin? Definitely it is not a law or government endorsement, although this may give it a boost. Adoption is determined by necessity first, and then by conscience.
This is why we see that the places where have high levels of inflation or devaluation of the local currency, are where the use of Bitcoin (and other cryptocurrencies) is more intense. As is evident, in these cases it is the need that drives the bitcoinization process.
In this case, people that are suffering the loss of purchasing power, the freezing of funds by banks and the insecurity that an economic crisis brings, look for an alternative that protects them and they end up coming to Bitcoin.
From the other side, we have the conscience-driven progressions of adoption. A longer process, but possibly more robust. This type of event is more common in developed countries or places where the local currency is strong and the economy stable.
And the thing is, most people that have a good level of economic security and a guaranteed welfare state, have no interest in looking for an alternative to the system that works so well for them. That is why adoption happens by conscience.
Started by those who have notions of economics, who study how the traditional financial system works and realize that there is something wrong.
Of course, the conscientious adoption of Bitcoin is not exclusive to countries with these characteristics. Once those in poor nations adopt it by necessity and realize its potential, in a show of solidarity they begin to educate their countrymen in its use.
Bitcoin adoption, the way forward
If you have noticed, I have implicitly used conscience and education as synonyms. And it is that, because in the case of cryptocurrencies it has been practically the same.
The reality is that even in countries with serious political and economic situations, there are those who, precisely because of the natural mistrust of these scenarios, are reluctant to insert themselves into the crypto ecosystem. And it is they who must be reached and educated so that they can open themselves to this new opportunity.
And it is not only ignorance that influences, but also tradability. Bitcoin is worth nothing if nobody accepts it as a payment method and you cannot exchange it for basic products for your life.
In this sense, large cities or tourist places have an advantage over less cosmopolitan or visited sites. In the big cities is where there is a greater number of P2P transactions of cryptocurrencies.
However, it is a situation that should be reversed and make the center of bitcoinization rural areas, which is ultimately where most agricultural producers live. To be honest, they, despite the fact that they are often forgotten or have the least glamorous image in the popular imagination, are the ones that sustain modern society.
In this way, the true adoption potential of Bitcoin and non-inflationary decentralized cryptocurrencies could be realized. Going from being a mere instrument for traders or investors to generate profits or speculate, to being the real incentive for production and an instrument for protecting the value of work.
Bitcoin and cryptos have come a long way, and they have a lot more to go. It is necessary to educate a lot so that the ideas that gave way to its emergence are not contaminated. And above all, prevent what began as a path to freedom from ending up being just the tokenized version of the traditional system and all its ills.
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Originaly published by me in HIVE
