The Crypto Opportunity

Author

Justin
February 15, 2024

Hey everyone,

Great business and investment opportunities in the tech industry happen in rapidly growing markets.  Rapidly growing markets have lots of new users joining every day, and these users will have their needs met by new products, and services.

So, when you see a new gadget or app taking off like wildfire, it's worth digging deeper to see if there's a chance to get in on the action and help make things even better. (Disclaimer: Be wary of bubbles when doing this).

To evaluate a growth opportunity - like the one we’re seeing in crypto - what we need to do is look at how many people use the technology vs how many people will eventually use it.  If the gap is large…there's likely to be good opportunities to be had.

As of now, there are around 420 million crypto users worldwide1. Now, think about that compared to the 8 billion people alive today. There's still loads of room for more people to get into it!

Sure, not every person is going to use crypto so we shouldn’t expect all of them to use it. Some folks couldn't care less. So how can we tell if there’s still lots of room for growth ahead?…by looking at the crypto adoption curve over time (see chart below). Over roughly the past decade, crypto has followed the same adoption curve as the internet! Yes I said it, the internet… the thing that 5 billion people use every single day!  If crypto continues at the same adoption rate, it might eventually have as many users as the internet does now! If that happens, even Grandma will be into crypto.

These adoption trends tend to be very durable and predictable so it is likely this trend persists over time.

Source: Bitcoin Magazine

Don’t get me wrong though, there will be some bumps and bruises along the way but that is true with all emerging technologies. Chainalysis has put together a global crypto adoption score.  What it shows is that global crypto adoption since the last crypto cycle peak in November 2021 is down.  Even though this is true…lets not lose site of the bigger picture. The adoption level is significantly higher than it was back in 2020, which is in line with the longer term adoption growth highlighted in the chart above.

All signs point to a promising future for crypto. All we have to do is figure out where we fit in and how we can get involved.

Have a good week

Justin

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Disclaimer: The Blockchain Breakthrough is not financial advice.

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