Home Bitcoin News Bitcoin (BTC) Ecosystem Evolving with Retailors Investors Institutions Showing Adoption

Bitcoin (BTC) Ecosystem Evolving with Retailors Investors Institutions Showing Adoption

Bitcoin (BTC) Ecosystem Evolving with Retailors Investors Institutions Showing Adoption

Increasing numbers of businesses are willing to accept cryptocurrencies to improve their business.

The Most Popular Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Tether (USDT), Cardano (ADA), USD Coin (USDC), Stellar Lumens (XLM), Polkadot (DOT), and Polygon (MATIC).

Top Players who accept Cryptocurrency Payments:  Microsoft, Wikipedia, Paypal, Starbucks, AT&T, Overstock, Twitch, Amazon, Home Depot, Whole Foods, Cheap Air, Newegg, Namecheap, Rakuten, and Fast Food restaurants.

The success of any cryptocurrency depends on its acceptance.  While larger companies are beginning to accept crypto, small players are jumping on the board. Increasing numbers of merchants are willing to accept Bitcoin.

While the acceptance of Bitcoin is taking its own direction, there is a difference in attitude in the Bitcoin investor attitude.

Retail Bitcoin buyers are those who invest their personal money into Bitcoin.  Retail investors are those who have been doing most of the buying for some time now.  And, bitcoin institutions were those who were doing most of the selling.  The trending situation is different from the traditional interest of retail investors – it just looks like retail investors are refraining from investing in Bitcoin.

A growing number of firms have been investing in Bitcoin and they have been purchasing Bitcoin in billions. Publicly-traded companies are buying Bitcoin for their reserves. And, this was considered laughable.  There were criticisms in the past that the cryptocurrency was volatile and that it was not worthy to be embraced by any serious business.

However, with the coming of the Covid-19 pandemic, the story took a different turn.  Those investors who were not interested in buying bitcoin directly were more than happy gaining exposure to the asset by signing up for institutional investment.

There are retailors who are long in their BTC position, and they are now trying to get out.  There is a need for some volume of transaction to take place to survive.

Liquidity providers benefit from arbitrage.  Liquidity providers are the market makers.  For market makers to be in the game there need to be more people who are “selling, trading or leveraging”.

Those who leverage are in the game with borrowed capital.  They are here to maximize their advantage.  Those who are trading go in and out of the game.  However, buyers are those who are going to buy and hold, which is not really advantageous for market makers.

Adoption of Bitcoin or any other cryptocurrency will happen when there is an ecosystem of merchants accepting crypto, major institutions and funds investing in it, and retailors in the game.  This is already happening, but the kind of stability to provide for the robust Bitcoin ecosystem is just developing as there is a change in investor attitude due to the volatility of the cryptocurrency.

 

 

 

 

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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