There have been rumours for some time that cryptocurrencies are becoming mainstream, but could it be when they happen at the end of 2020? We need to look closely at some of the available signs to understand why this is a possibility.
PayPal adoption helps Bitcoin’s huge price rise
The famously volatile Bitcoin price has soared as it reaches its second-highest price in history, surpassing $ 19,000 in November 2020. This may not seem like a big deal, as its value has been seen regularly over the past few years.
Still, many analysts believe it may be different this time around, as it could be a breakthrough that firmly established the digital currency as something permanent. One of the reasons the price has risen in this way is probably due to the fact that PayPal has announced that its customers can start buying cryptocurrencies and then use them to make payments.
Since Litecoin, Bitcoin Cash and Ethereum are also covered, this is not just limited to Bitcoin, which means PayPal users can buy any of these tokens and then use them to buy anything from the millions of vendors who accept this method of payment. It is currently only available to American users, but it already seems to have made an impact.
Ripple can make transfers cheaper and easier for everyone
Bitcoin has since doubled its value by a week before collapsing due to the Ripple Coinbase failure, the fastest-climbing crypto in recent times, and has quadrupled its price since the beginning of 2020. One reason for this spectacular rally appears to be the clarification of legislation covering the use of digital money to send transfers.
The US currency bill Inspection Office is expected to halt attempts by banks to ban cryptocurrencies from competing in the money transfer market. This could make it faster and cheaper for everyone if they use international transfers.
Increasing use of Bitcoin as a safe port
Traditionally, gold and the US dollar have been seen as the safest ports for investors in times of economic turmoil. Still, there have been arguments over the past few years that suggest bitcoin could act as a store of value, making it another kind of safe haven.
Not everyone agrees, because the wild price fluctuations of digital money are not what we would normally associate with a safe haven. Bitcoin is “like digital gold,”according to investor Mike Novogratz. But according to a Forbes article by Roger Huang, BTC has” some things in common with gold, ” but it bears no resemblance in other ways.
Still, the evidence in 2020 seems to suggest that more people are turning to BTC as a way to protect their cash from turbulent exchanges and commodity markets. The fact that only 21 million Bitcoins can exist creates a sense of scarcity, just like gold, and could help it maintain its value while there is real fear of rising inflation on the planet.
The fact that it is almost impossible to know how many people own BTC makes it difficult to prove this theory at the individual investor level. However, the changing attitudes of businesses towards crypto may point to a new perspective on Bitcoin. In this context, some technology firms, such as Square Inc and Microstrategy, have recently transferred a percentage of their cash reserves to BTC.
Overall, it’s too early to say that cryptocurrencies are finally becoming mainstream. Having said that, the current signs certainly seem to point in that direction right now.