Slow and Steady Wins the Race, a Historical Framing of Crypto Adoption
Welcome to this week’s Breezepay Newsletter,
Today we’re looking at a new era, one that’s reshaping our economic and financial landscape in ways we’ve never seen before. As cryptocurrencies continue their steady ascent towards mass adoption, they’re carving out a new path in the annals of technological and economic history.
This week, we invite you to join us on an exploration of the rise and growth of cryptocurrencies, from their humble beginnings to the transformative force they represent today. By highlighting the significant milestones of crypto adoption, and drawing parallels with the early days of the internet, we aim to demonstrate the resilience and potential of the crypto sector using one metric in particular: active wallet addresses. For all the ups and downs of the price of different cryptocurrencies, the one thing that has remained slow and steady is the gain in total users.
Chapter 1: The Genesis Block — The Dawn of a New Era
Our journey starts at the inception of it all — with the creation of Bitcoin. Launched in 2009 by an anonymous entity known as Satoshi Nakamoto, Bitcoin emerged as a trailblazer, pioneering the concept of decentralised digital currencies in the midst of a global financial crisis. In its nascent years, Bitcoin was the subject of fascination for a small cohort of tech enthusiasts, hackers, and cryptographers. The growth was slow but steady, and the number of active Bitcoin wallet addresses remained in the mere hundreds. Yet, little did anyone know that this cryptographic experiment was the seed that would grow into the expansive forest of digital assets we see today.
Chapter 2: The 2013 Bull Run — The First Ripple Effect
Fast forward to 2013, the first remarkable milestone in the crypto timeline. In a somewhat surprising turn of events, Bitcoin’s value experienced an exponential surge. This bull run not only signified the first significant appreciation in Bitcoin’s price but also brought a dramatic influx of new users into the Bitcoin ecosystem. The number of active Bitcoin addresses crossed the threshold of 100,000 for the first time, reflecting an intensified global interest. By the end of the year, Bitcoin was no longer an obscure internet oddity; it had evolved into a disruptive technology that was beginning to catch the eyes of mainstream media and attract a new wave of retail investors.
Chapter 3: The 2017 Bull Run — A Watershed Moment in Cryptocurrency Adoption
The 2017 bull run marked a watershed moment for cryptocurrencies, both in terms of awareness and adoption. This year wasn’t just about Bitcoin — it represented a period of rampant growth for the entire crypto industry. The Initial Coin Offering (ICO) boom brought a plethora of new digital assets into the limelight, broadening the cryptocurrency landscape. As more people explored these new opportunities, the term ‘cryptocurrency’ began seeping into everyday conversation. The active Bitcoin addresses count shot past a million, with Ethereum not far behind, showcasing the growth of a vibrant and diverse crypto community.
Chapter 4: The 2020–2021 Bull Run — The Era of Institutional Adoption and DeFi
The 2020–2021 bull run was characterized by an even broader and more impactful wave of adoption. It wasn’t just individual investors who were flocking towards cryptocurrencies this time; institutional investors started marking their entries as well. Esteemed companies like MicroStrategy and Tesla started adding Bitcoin to their balance sheets, signaling a new level of acceptance and confidence in cryptocurrencies. Simultaneously, the Decentralized Finance (DeFi) sector exploded, leveraging the power of blockchain technology to reimagine traditional financial systems and services. By May 2021, the total number of global crypto users had surpassed a staggering 200 million.
Chapter 5: Echoes of the Internet’s Adoption Curve
When we examine the persistent increase in active wallet addresses and steady user adoption of cryptocurrencies, we can’t help but see the striking resemblance to the early days of the internet. The internet, much like crypto, initially grew at a slow pace, primarily attracting tech enthusiasts. It wasn’t until about 15 years after its inception, in the mid-90s, that the internet started experiencing mainstream adoption. Bitcoin, now in its 13th year of existence, is following a strikingly similar trajectory.
Looking Ahead: The Future of Crypto Adoption
As we stand at the precipice of the next stage in financial evolution, it’s becoming increasingly clear that cryptocurrencies are not just a passing fad — they’re here to stay. The consistent growth in user adoption, the ever-increasing number of active wallet addresses, and the influx of institutional investments serve as potent indicators of this enduring trend. However, it’s important to remember that despite the significant progress we’ve made, we’re still in the early phases of this journey.
The full potential of cryptocurrencies and blockchain technology is still largely untapped. Each new development, each innovation, brings us one step closer to realising this potential. As we close this historical tour, we hope that understanding crypto’s steady growth trajectory reassures those who might be apprehensive about entering the space. If you’ve been worrying that you’ve ‘missed the boat’, take heart — the ship has only just set sail. So buckle up, dear reader, because we’re all in for an exciting voyage of discovery and growth.
Stay curious, stay informed, and most importantly, stay engaged as we navigate the choppy waters of this new and exciting digital economy together. Until next time!
Best,
The Breezepay Team
