Sirwin
Sirwin

Bitcoin in 2021: Usage, institutions and narrative (2/2)


 Strong signals

  In addition, there are clear signs that Bitcoin is taking hold of people's minds and uses. Just in the last few months:

  In the United States, the American Cancer Society, one of the leading cancer-fighting NGOs that has existed for more than a century, now accepts donations in Bitcoin. In July 2020, the Washington Bar, following in the footsteps of other states, ruled that lawyers can agree to be paid in bitcoin for their services. In Nevada, Vegas Auto Gallery, a luxury car dealership that accepts payments in Bitcoin, finds that 3 to 5% of its turnover is now made in cryptocurrency.

  In Japan, Rakuten, the Japanese retail and e-commerce giant, often referred to as “the Japanese Amazon,” now allows its customers to convert their loyalty points into bitcoins. 

  In Austria, in July 2020, the country's first telephone operator A1 Telekom integrated cryptocurrencies into its mobile payment service, allowing merchants to accept Bitcoin, Ethereum and Dash. 

  In Switzerland, the city of Zug has authorized since 2020 the payment of taxes via Bitcoin and Ethereum (a possibility already offered in several American states, in particular). The same goes for Zermatt, a renowned ski resort and one of the most touristic towns in the country. The adoption of the principle by the citizens seems slow, but the experiment is repeated in 2021. 

This is just a brief selection of news from the Bitcoin universe. But it shows that we are already a long way from the “weak signals” regarding the use of Bitcoin for commerce and settlement. 

Contrary to popular belief, Bitcoin is not just a tool for financial speculation, but rather a means of exchanging value. 

In fact, Bitcoin is increasingly used as a currency.

 Institutional interest and change of narrative 

As has been said a lot, 2020 will have been marked by pharaonic investments in bitcoins led by big players in finance. 

To name a few, Grayscale bought $ 1 billion worth of bitcoin in November 2020 and MicroStrategy bought $ 1.3 billion between August and December 2020. Insurance company Mass Mutual Life Insurance acquired Bitcoin for $ 100 million in December, while UK investment firm Ruffer Investment bought it for $ 744 million in the same month ...

The least that can be said is that it demonstrates a real “institutional interest” in Bitcoin.

But, just as notable as the amounts invested, during the year 2020 we could see a clear change in the narrative on the subject of Bitcoin, especially in the United States. While the CEO of investment bank JP Morgan called Bitcoin a “fraud” in 2017, analysts at the same bank now believe that Bitcoin is indeed “an alternative currency in competition with gold”, and that its price could reach $ 146,000.

Many experts in global finance believe that Bitcoin is an asset comparable to gold, and that it could even replace it. Starting with BlackRock, the largest asset managers in the world (nearly $ 8 trillion), one of whose officials said in November 2020: “Bitcoin is here to stay. […] Do I think this is a durable mechanism that could to a large extent replace gold? Yes, I believe it ”.

Skybridge, who has just created a Bitcoin investment fund, explains in detail how “Bitcoin is better than gold at playing the role of gold”.

And this discourse is not limited to financiers. Shortly after being elected in 2020 to the US Senate, Cynthia Lummis, Republican, gave an interview to Bitcoin Magazine where she was very positive about Bitcoin and said she wanted to promote it. She explained, for example, wanting to “help other senators understand Bitcoin”, “prevent federal regulation”, “let each state innovate on its Bitcoin policy”.

All of this points to two things: Not only is Bitcoin now part of the Wall Street landscape, it is taken very seriously, including by politicians. In the United States, many seem to have understood that Bitcoin is a must - and even a way forward.

see the first chapter of this article in this link/
Bitcoin in 2021: Usage, institutions and narrative (1/2)

 

 

To be continued: 3 / The future of Bitcoin

 

How do you rate this article?

2


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

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.