Bitrabo Editorial
An analyst has speculated on the potential timeline for Bitcoin to reach a market size comparable to the US Dollar (USD) based on its historical adoption trends.
The Growth Needed for Bitcoin to Compete with the USD
In a recent publication on X, analyst Willy Woo delved into the increasing anticipation surrounding the leading cryptocurrency in financial spheres.
Woo highlighted that while Bitcoin currently boasts a market cap of approximately $1.2 trillion, traditional asset classes typically reach valuations in the range of tens of trillions.
The analyst articulated that the prevailing sentiment in the financial sector suggests three key expectations for Bitcoin: surpassing $10 trillion in market cap, rivaling the USD in size, and evolving into a reserve asset.
To predict when these anticipations might materialize, Woo referenced the adoption curve of cryptocurrencies. He presented a chart comparing Bitcoin’s adoption rate with that of the internet.
The chart illustrates the percentage of the global population currently engaged with Bitcoin, derived from various studies on cryptocurrency adoption conducted by entities such as Glassnode and Cambridge.
Woo’s analysis suggests that Bitcoin’s user base currently represents approximately 4.7% of the world’s population.
Based on the internet’s growth trajectory, Bitcoin could still be in the early stages of adoption, potentially indicating an acceleration in user base expansion.
For Bitcoin to rival the USD, Woo estimates that the adoption curve needs to reach the 25% to 40% range, possibly occurring sometime in the 2030s.
The evolution of Bitcoin’s adoption curve in the forthcoming years will determine whether it mirrors the pattern observed with the internet or unfolds differently.
Bitcoin Price Update
This week commenced with Bitcoin’s price dipping below $59,000; however, the cryptocurrency has rebounded and is currently trading above $61,400. The sustainability of this price recovery remains uncertain, as the market could potentially experience further fluctuations.