With More Adoption in Sight, Is Now a Good Time to Buy Bitcoin?
2022-04-11 09:34:00
Should I Buy Bitcoin Now?
As previously reported by Gate.io, the Bitcoin 2022 conference is ongoing in Miami. On Thursday, Strike CEO Jack Mallers unveiled a litany of high-powered partnerships for Bitcoin’s Lightning Network– including an integration with ecommerce giant Shopify.
According to Mallers, any website that uses Shopify online card transactions can now process payments using Bitcoin’s Lightning Network. During the presentation, a slide appeared listing some of the biggest retailers in America, including McDonald’s, Walmart, Home Depot, and Best Buy.
Kraken and Bitpay have integrated Bitcoin’s Lightning Network over the past few weeks while Robinhood also announced its plan to implement the network in the near future at the conference as reported. The Lightning Network is a layer two solution for the Bitcoin blockchain that uses smart contracts to settle payments instantly with meager fees.
According to Mallers’s introduction, retailers will be able to receive Bitcoin from customers and instantly convert it to fiat without any fees or processing delays via Lightning Network.
The partnership between Strike and Shopify’s global network of merchants is live right now, which is no doubt a massive step toward the mass adoption of Bitcoin, especially with the help of the big names like McDonald’s and Walmart, who are highly visible not only in the U.S. but around the world.
Will Bitcoin price benefit from Bitcoin adoption?
The price of Bitcoin hasn’t reacted to the positive news of Bitcoin adoption as of yet. Bitcoin price live on Gate.io is $43452.93, which saw a 0.06% drop in the past 24 hours. However, adoption of this scale doesn’t usually happen overnight as for many investors, it may feel too big and too good to be true. It still takes time to confirm whether retailers will create extreme and sustained sell pressure on the price.
According to a report published by financial technology platform iCapital Network in September 2021, many experts predict that the prices of most cryptocurrencies will surge should they receive wider mainstream acceptance. This of course applies to Bitcoin, therefore, they believe that Bitcoin’s value will continue to rise due to limited supply and rising adoption.
By contrast, analysts at Goldman Sachs pointed out that the growing mainstream acceptance might not result in higher prices for digital assets. Mainstream adoption can be a double-edged sword; While it can raise valuations, it will also likely raise correlations with other financial market variables, reducing the diversification benefit holding in the asset class,” they noted.
In June 2021, Bitcoin jumped 6% to more than $37,000 just a day after El Salvador passed a law to adopt Bitcoin as legal tender. However, three months later, when the country bought 400 Bitcoins Tuesday as it preloaded government-run Bitcoin wallets for citizens called Chivo, Bitcoin fell by 11% instead of rising as some investors could be selling off.
Overall, if you want to buy Bitcoin right now, with the hope that Bitcoin price will soon soar because of the good news brought by adoption, be incredibly prepared.
As previously reported by Gate.io, the Bitcoin 2022 conference is ongoing in Miami. On Thursday, Strike CEO Jack Mallers unveiled a litany of high-powered partnerships for Bitcoin’s Lightning Network– including an integration with ecommerce giant Shopify.
According to Mallers, any website that uses Shopify online card transactions can now process payments using Bitcoin’s Lightning Network. During the presentation, a slide appeared listing some of the biggest retailers in America, including McDonald’s, Walmart, Home Depot, and Best Buy.
Kraken and Bitpay have integrated Bitcoin’s Lightning Network over the past few weeks while Robinhood also announced its plan to implement the network in the near future at the conference as reported. The Lightning Network is a layer two solution for the Bitcoin blockchain that uses smart contracts to settle payments instantly with meager fees.
According to Mallers’s introduction, retailers will be able to receive Bitcoin from customers and instantly convert it to fiat without any fees or processing delays via Lightning Network.
The partnership between Strike and Shopify’s global network of merchants is live right now, which is no doubt a massive step toward the mass adoption of Bitcoin, especially with the help of the big names like McDonald’s and Walmart, who are highly visible not only in the U.S. but around the world.
Will Bitcoin price benefit from Bitcoin adoption?
The price of Bitcoin hasn’t reacted to the positive news of Bitcoin adoption as of yet. Bitcoin price live on Gate.io is $43452.93, which saw a 0.06% drop in the past 24 hours. However, adoption of this scale doesn’t usually happen overnight as for many investors, it may feel too big and too good to be true. It still takes time to confirm whether retailers will create extreme and sustained sell pressure on the price.
According to a report published by financial technology platform iCapital Network in September 2021, many experts predict that the prices of most cryptocurrencies will surge should they receive wider mainstream acceptance. This of course applies to Bitcoin, therefore, they believe that Bitcoin’s value will continue to rise due to limited supply and rising adoption.
By contrast, analysts at Goldman Sachs pointed out that the growing mainstream acceptance might not result in higher prices for digital assets. Mainstream adoption can be a double-edged sword; While it can raise valuations, it will also likely raise correlations with other financial market variables, reducing the diversification benefit holding in the asset class,” they noted.
In June 2021, Bitcoin jumped 6% to more than $37,000 just a day after El Salvador passed a law to adopt Bitcoin as legal tender. However, three months later, when the country bought 400 Bitcoins Tuesday as it preloaded government-run Bitcoin wallets for citizens called Chivo, Bitcoin fell by 11% instead of rising as some investors could be selling off.
Overall, if you want to buy Bitcoin right now, with the hope that Bitcoin price will soon soar because of the good news brought by adoption, be incredibly prepared.
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