A recent report has revealed that only 4% of the global population at this time, holds Bitcoin. In the United States, an estimated 14% of people own BTC. A research report by River, a Bitcoin financial services firm, shows that North America has the highest adoption rate.Â
In contrast, Africa has the lowest rate at only 1.6%. The report indicates that developed regions have embraced Bitcoin more than emerging markets.
Continued Development of the Protocol
The Bitcoin protocol, now 16 years old, continues to see active development. The report mentions 115 active Bitcoin Core contributors, two more than last year. In 2024, there were 2,500 code commits to Bitcoin Core, an 8.5% increase year-over-year.
Developers changed 276,000 lines of code this year. Thirteen organizations now fund development, with three new entries in 2024. Despite its age, Bitcoin remains a dynamic project.
A Predictable Monetary System
Bitcoin functions as a monetary system with no downtime over the past decade. The supply schedule is highly predictable. So far, 94% of all 21 million Bitcoin have been mined. The remaining 6% will be mined over the next 115 years.
The daily issuance of Bitcoin dropped from around 900 to about 450 BTC after the April 2024 halving. Bitcoin’s supply growth in 2024 was only 0.8%, lower than that of major fiat currencies and even gold.
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Challenges in Global Adoption
The ownership of Bitcoin is not evenly spread around the world. Data shows that only a small fraction of people own BTC. River estimates that Bitcoin has only reached 3% of its maximum adoption potential.
The report considers institutional underallocation and individual ownership rates to reach this figure. Bitcoin faces challenges that prevent mass adoption. One major issue is the complexity that arises when technology meets finance. Many find it hard to understand how Bitcoin works.
Barriers to Widespread Use
A lack of financial and technical education fuels many prejudices. Some people still see Bitcoin as a scam or a Ponzi scheme. These views make it hard for the digital currency to win trust. High price volatility is another obstacle.
While traders might like the volatility, regular users may not. In developing countries, many prefer stablecoins pegged to the US dollar. Stablecoins offer more stability and lower transaction costs than Bitcoin, which further hinders its use as a currency.
The Road Ahead for Bitcoin
Bitcoin has come a long way since its early cypherpunk days and now holds the status of a US government reserve asset. However, its global adoption is still in the early stages. The digital currency faces several hurdles that slow mass adoption.
Education, clearer communication, and improved stability are essential in overcoming these barriers. Over time, as more people learn about Bitcoin and its benefits, adoption may increase.
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