Sirwin
Sirwin
This chart indicates a continuous rise in Bitcoin

Bitcoin en 2021 : Usage, institutions and narratif (1/2)


        the only things that really matter in measuring Bitcoin's success are how it is used and what decision makers and influencers think about it. However, the use of Bitcoin is only increasing and democratizing, while the year 2020, in the United States at least, was characterized by a very positive change of narrative in the place of Bitcoin.

       Increasing usage:

       On February 5, 2020, Bitcoin crossed the symbolic milestone of 500 million transactions recorded on its blockchain since its inception. In volumes, the threshold of 10,000 billion dollars transferred via the Bitcoin network since its creation has just been reached (according to various analyzes, here and there). This is quite considerable, being a decentralized network with no oversight body: not a single ounce of this money has used banking networks to move from one point to another.

The number of “daily active” Bitcoin addresses doubled in 2020, while the number of addresses with at least 0.01 BTC increased by 700,000, to almost 3 million addresses (unprecedented).

Between 2015 and 2020, the number of Bitcoin addresses with at least 1 BTC also more than doubled, reaching its all-time high of nearly 800,000 addresses. At the beginning of December 2020, nearly 33 million Bitcoin addresses housed a non-zero value (we can also note that the same figure was 50 million for Ethereum). This is also a historic high.

        Currency or not:

       It remains to be seen what bitcoins are used for. What strikes me as the most important is to estimate whether or not Bitcoin is gradually establishing itself as a currency. The subject is complex but we can find some answers. In November 2020, PayPal allows its American users to credit their accounts with Bitcoin, Ethereum, Litecoin and Bcash. As the world's largest digital payment system, adopted by 26 million online merchants, this marks a major turning point in the history of cryptocurrencies.

As the CEO of PayPal explained at the time: “The shift to digital currencies is inevitable and has clear advantages in terms of financial inclusion and access, efficiency, speed and resilience of payment systems”. In short, PayPal has just “dubbed” cryptocurrencies, led by Bitcoin, as a vector for the future of online payment and commerce. However, PayPal has only confirmed an evolution that has already been observed for several years. BitPay, only one of the Bitcoin payment processors, has exceeded one billion dollars in cryptocurrency transactions each year since 2017. We are talking only about purchases, donations, bill settlements. And Bitcoin accounts for almost 80% of those payments (November 2020).

Obviously, the overall amounts remain low compared to payments by bank cards for example. But growth is quite different. Coinbase, another Bitcoin payments processor (through its Coinbase Commerce offering for merchants) handled $ 135 million in cryptocurrency payments in 2019 - up 600% from the previous year. In real life, tens of thousands of businesses already accept Bitcoin. The Coinmap site only lists a part of it (since you have to register to appear there) but still lists more than 18,000.

(Bitcoin businesses and distributors in Europe)

I never give any investment advice here, and I don't like to predict Bitcoin's price, but I would be very surprised to see bitcoin below $ 15,000 again.

To be continued: (2 /2)  Usage, institutions and narrative

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TOMYBUILDER@
TOMYBUILDER@

I have been interested in blockchains and Bitcoin since 2016 and even mined some at the time. The ensuing bubble turned me away from it, but I've been back to it since 2017 and have been studying them with passion ever since.


Understanding Bitcoin and Cryptocurrencies
Understanding Bitcoin and Cryptocurrencies

This blog, which is not very technical and aimed mainly at newbies, is intended to increase awareness and understanding of Bitcoin and the hundreds of other cryptocurrencies in existence. It is based on a deep conviction: Bitcoin is the first global universal currency; crypto-currencies will create new value systems, transparent and decentralized (and bring to the web the monetary and financial layer that it lacked); and more generally, blockchains will establish themselves as new universal data processi

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