With the price of Bitcoin spiking in recent weeks, everybody’s calling for the next big bull run. Many are saying it’s already here. But as fundamental investors know, and gamblers who plan on holding on to their Bitcoin bankroll for the long term know, winning in the long run is all about introducing more people to the technology. That’s true with any relatively new technology, and it’s even true with gambling. You need a long-term strategy in order to survive. Big wins on any given day simply don’t cover all your losses and long term, so you really have to be in it to win it.
Adoption itself typically happens in cycles. People start out not knowing what Bitcoin is, then they see the price pop and hear about it in the news, they consider buying a small amount of Bitcoin, and if they’re really confident and like the results they’re getting financially, they buy more. If there really interested, they will look into alternative crypto projects that might solve problems Bitcoin simply doesn’t.
The truth is that all this happens in an adoption cycle, and many now believe that we are entering a cycle of adoption. What that essentially means is that there are more people that are coming into Bitcoin and cryptocurrency with the intention of actually staying in the game for the long run.
What’s Driving the Adoption Cycle?
CoinMetrics.io is a great website for collecting statistics related to the user behavior surrounding Bitcoin and other projects. The website suggests that the number of Bitcoin wallets with at least $10 and them is sitting at 16.6 million users, which is a new record for the project, which officially launched its blockchain at the beginning of 2009. 16.6 million users is certainly a lot but there’s room to grow.
The real question is, what’s actually driving this adoption?
There’s a good chance of section the coronavirus pandemic and all of the economic stimulus packages and uncertainties that are flying around it. President Donald Trump is printing off more and more money to try and support Americans out of work, and a lot of those people are using that money to invest.
There’s also a popular belief that people are using Bitcoin as a hedge against a potential economic collapse, though the fact that Bitcoin took a huge nosedive in March amid the beginning of the pandemic works contrary to that belief.
What’s driving the cycle is likely the battle that has occurred over the past two or three months where the price of Bitcoin struggled to move either below the $9,000 USD mark or above the $10,000 USD mark. There is no doubt the coronavirus is driving some of this, but ultimately it may not be a totally accurate reflection of permanent sustainable adoption on the part of new blockchain users.
So What Does This Mean for Gamblers?
Investing will always go hand-in-hand with a gambler’s mentality. Risk management and the desire for profit as well is the fear of loss drive both. Ultimately in the long term, gamblers who are dedicated to Bitcoin gambling sites and other digital currencies and plan to hold onto their bankroll in that format will profit from price appreciation. In the short term, it may just be time to pull out a little bit of profit and enjoy your money.
As always, it’s important to think about more than just what’s happening today or tomorrow or next week or even when there is finally a vaccine for the coronavirus (which will hopefully happen sooner rather than later). Think of adoption as something that takes decades, not just a few months or a few years.
If you do that, holding on to Bitcoin will seem like the best gamble ever in the long term. You can almost certainly bet on that!