In a recent article released by CCN, the author Wes Messamore provides 10 reasons why Bitcoin could start a massive bull run in 2019. In this article, we will be selecting five of the reasons that we believe could help Bitcoin (BTC) start growing once again.
Could Institutions Start a Bull Run?
One of the things mentioned in the article is related to the institutionalization of the market. According to the cryptoanalyst and journalist Joseph Young, the cryptocurrency market has made more progress in 12 months than in the first 9 years of Bitcoin. He mentioned that there have been $40 million invested from 2 public pension funds in the United States. He has also written that $237 million have been invested by institutions through Grayscale.
Moreover, there are other firms such as Fidelity and the Intercontinental Exchange (ICE) that are building infrastructure for institutions to enter the market. Additionally, there are also some exchanges that are starting to operate as custodians.
Crypto made more progress in institutionalization in 12 months than in previous 9 years.
– $40M from 2 public pension funds in the U.S.
– $237 million invested by institutions through Grayscale
– Fidelity and ICE building infrastructure
– Major exchanges operating as custodians
— Joseph Young (@iamjosephyoung) February 17, 2019
The cryptocurrency market has been very excited about institutions entering the space and allowing virtual currencies to be adopted around the world. Nevertheless, this did not happen in 2018, and the market experienced a bear trend.
Second Layer Solutions Are Starting to Help Bitcoin
There are second layer scaling solutions that are going to help Bitcoin grow. Everyone remembers when Bitcoin was congested and processing a simple transaction could take up to several days or cost $60. Small transactions were almost impossible to be processed because of the fees were higher than the funds transacted.
The Lightning Network (LN) is helping Bitcoin to process more transactions per second (TPS) for almost no fee and instantly. Thus, more use cases for Bitcoin mean that there would be an increased interest in it.
Currency Crisis Could Increase Bitcoin Demand
During 2018, we have seen how Venezuelans embraced Bitcoin and started to use cryptocurrencies to avoid being hit by hyperinflation. Citizens in the country used Bitcoin as a store of value that allowed them to save some of their funds. Moreover, some individuals that left the country were sending funds back to Venezuela using Bitcoin because other financial channels were censored or simply controlled by the government.
If there are other countries experiencing a currency crisis such as Venezuela that have similar inflationary rates (10 million percent according to some estimates) could embrace Bitcoin as a store of value.
Bitcoin ATMs Expand All Over the World
Bitcoin enthusiasts that did not purchase Bitcoin during the last bull run, might have a new opportunity to do it in 2019 or 2020. There is a larger network of Bitcoin ATMs around the world. North America and Europe have thousands of Bitcoin ATMs available for users to buy and/or sell Bitcoin.
As there are new locations for investors to buy Bitcoin, if there is an increase in the demand for this digital asset, Bitcoin ATMs will play a very important role.
Retailers Adopt Bitcoin as a Means of Payment
Retailers around the world are starting to embrace virtual currencies. Rakuten, known as “the Amazon of Japan” has recently announced that it will launch a new update for its mobile application that could include support for virtual currencies.
The company announced:
“A major update for its mobile app platform Rakuten Pay, which is set to release later next month with the potential inclusion of cryptocurrency payments in conjunction with fiat.”
If there are other retailers accepting Bitcoin and virtual currencies, this could be very bullish for Bitcoin. Clearly, this is something that could affect in a positive way the most popular virtual currency in the market.
At the time of writing this article, Bitcoin is being traded close to $4,000 and it has a market capitalization of $70 billion.