What the Bitcoin ETF Means for Bitcoin Adoption

It is January 10th, we are running Bitcoin, and it is 4th and inches from an ETF approval.

While many are excited about the Bitcoin ETFs and the heated competition between the managers, the exciting marketing campaigns, and the insane price movements likely to come, I can only focus on one thing.

How does this validate Bitcoin as a store of value?

After years of being called rat poison, a scam, and being claimed dead thousands of times, ETF issuers are chomping to have the lowest fees to get the most AUM possible.

This clarifies the demand is here, and asset managers want to be the industry leader and holder of Bitcoins.

Validated as a store of value

What is next now that every human and institution has potential access to Bitcoin?

The store of value thesis is proven true. Next, I expect to see more businesses explore the use cases for Bitcoin as payment.

The mental hurdle within legacy institutions is the stigma of Bitcoin. It was once a career risk to consider it. Still, with the largest money managers in the world offering it to billions of people who own trillions in assets, it encourages the next rational step.

Bitcoins Purpose

In simple terms, Bitcoin is the first money with a fixed supply that can not be manipulated by man or institution. Bitcoin has a hard cap of 21 million and a predetermined issuance schedule that can be validated by open-source code. 

This clarifies to everyone on earth the expectations of how the Bitcoin network functions.

Unlike our central banks, which choose to change interest rates on a whim or print money to meet their agenda, Bitcoin is decentralized, creating an equal playing field for all economic participants. 

Considering every fiat currency fails (A study of 775 currencies indicates that the average life expectancy of a fiat current is 27 years) – Bitcoin offers a stable beacon of hope and protection of one's wealth and purchasing power into the future.

Bitcoin gives anyone the freedom and autonomy to carry and send payments anywhere globally without trusting a counterparty. This opens new doors to levels of commerce never before possible at any time in history.

This is just a slither of what value Bitcoin provides, but is foundational to why the Bitcoin ETF advances Bitcoin's value proposition in the eyes of the business world.

Businesses& Bitcoins value proposition

Game theory is interesting because once the preferences of a society shift, it is tough to turn back. Demand for the fulfillment of these preferences increases, and providers are almost required to fulfill that demand or else they will lose market share.

This is precisely what is happening with Bitcoin.

Look at cars, phones, the internet. 

Car dealerships replaced horse dealers. Phones made communication standards far faster and more efficient, and the internet has rapidly reduced consumer demand for the printing press.

Bitcoin not only has the foundationally necessary principles of money to function well in a society, it brings technology into the mix, giving brands the ability to create delightful user experiences for consumers.

We are still early

Fifteen years into Bitcoin, we are still early. Like the internet, integrating Bitcoin into the daily experience between people is still being fleshed out.

In 2008 the top websites compared to 2023 are as follows:

When I look over this data, it tells me the story that technology, over time, continues to advance how we connect, communicate, and experience life with one another.

This simple belief is foundational to how society functions. We constantly seek more profound ways to connect and do commerce to create a better life and experience.

Bitcoin is another tool that does this, but it does it in the form of money.

These are early stages. User experience is improving, and Bitcoin is optimized with new layers to function better on mobile. Payment reliability is increasing on these successive layers, and consumers are just beginning to experience the use of Bitcoin in business transactions and personal experiences with other humans.

Concluding

Bitcoin adoption and the understanding of Bitcoin is just beginning. No one knows where this thing is going or how big of an impact it will have on the world, but one thing is sure. Bitcoin has made it this far, and with more capital coming in, more awareness, and a new generation of entrepreneurs with ideas that the prior generations could not fathom, I would not bet against Bitcoin. 

About Voltage

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