Seven adoption, policy, and tech developments to be excited about
The current bear market is on everyone’s minds. Doom and gloom in every chart and metric. However, there is a lot to be excited about for Bitcoin Hodlers and enthusiasts.
First: Bipartisan Bitcoin Bill: A bipartisan Bill by Republican Senator Cynthia Lummis and Democrat Senator Kristen Gillinbrand was introduced and will be voted on (most likely by the 118th Congress). This Bill is long-awaited because it reduces a lot of uncertainty for US investors and corporate treasuries.
Second: Bitcoin Spot ETF: We are very likely to hear positive news about the SEC’s favorable decision on the Grayscale Bitcoin Spot ETF on July 6th (subject to change).
Third: LiFi (Lightning Finance): As of this writing, the Bitcoin Lightning Network capacity has reached an ATH capacity of 3,980 Bitcoins on the LN. A 6% increase MoM. Soon, the world will get to learn and use LiFi or Lightning Finance on a larger scale, especially with the launch of stablecoin transfers on the LN. Sending Bitcoin and receiving stablecoins, or sending stablecoins on the LN and receiving groceries at your doorstep will put Bitcoin adoption in high gear. This development is putting the LN and LiFi in a position to displace Visa and other payment networks in a few years.
Fourth Taproot Support: Back in November 2021, the Taproot upgrade was launched and given the green signal by nodes around the world. So far, we have 75%+ nodes supporting it, and Taproot addresses, signatures, and scripting are necessary to unleash the security and innovation we need to begin on-boarding companies, institutions, and governments at a larger scale. We will reach 100% node support soon. This is a massive development to be excited about.
Fifth: Taproot Asset Representation Overaly (TARO): NFTs and other innovations are coming to the Lightning Network. Not just stablecoins, smart contracts, digital services, collectibles, tokenized securities, and any assigned-value assets, but a myriad of other innovations. Bitcoin is a payment network that only allows Bitcoin for settlement. Anything built on or transferring above Bitcoin’s base layer gets settled in BTC. In other words, this is how we hyperbitcoinize the world and every fiat in existence. Today, Bitcoin is settled in US dollars on exchanges, but with TARO, everything will be settled in BTC, including the USD. It’s a financial revolution based on sound money. Note: Exchanges will not be happy about TARO, but that’s ok for us.
Sixth: SEC Regulation: We will see more SEC regulation until the end of this year and probably way into next year. Why is this good? The SEC views Bitcoin as a non-security asset. The SEC’s position and its chair Gary Gensler is that Bitcoin is not a security while other cryptos are.
Seventh: BTC Market Dominance Trends: In June 2020, there were approximately 3,392 cryptocurrencies. In 2021, that number grew to 5,621 (66% increase). Today, there are 19,780 cryptocurrencies. An astonishing 252% increase YoY. Yet, for Bitcoin it’s a non-issue and BTC’s market dominance tells the story of where real value is. Bitcoin’s market dominance in June 2021 was 41% with just 5,621 other cryptos to compete with. Today, Bitcoin’s market dominance is 45% against 19,780 cryptos in a total crypto market cap of $1.35 trillion. It’s not a competition anymore. In fact, other cryptos are “cannibalizing” each other while Bitcoin is in its own lane. By the next halving (in early 2024) we will likely have Bitcoin’s market dominance sitting comfortably above 60%. This shows Bitcoin’s real value and resilient dominance.
TLDR; Buy and Hodl. Current market conditions are temporary.