Bitcoin is the largest digital currency, but there’s ample appetite for the crypto universe at large, as confirmed by data from brokerage Robinhood.
The popular app-based trading platform said Thursday 9.5 million clients traded crypto in the first quarter, a six-fold surge from the last three months of 2020.
“Bitcoin, the world’s most-traded cryptocurrency, has nearly doubled in value so far this year, boosted by an increased interest from larger financial firms betting on its greater acceptance, and as a hedge against inflation. Bitcoin has also made its way into the corporate treasuries of Tesla Inc, Square and MicroStrategy Inc.,” reports Reuters.
Recently, Tesla said it bought $1.5 billion worth of Bitcoin, which will be accounted for on its balance sheet as goodwill. Having $1.5 billion worth of Bitcoin on hand will provide the automaker with sufficient liquidity to conduct business in the cryptocurrency. Some financial pundits are suspicious of Tesla’s move into Bitcoin however, as it represents an investment of a large percentage of its cash — over 7% of the more than $19 billion that the automaker possessed in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.
“Robinhood currently allows customers to buy, sell and hold cryptocurrencies, and had said it plans to give customers the ability to deposit and withdraw them for transfers to other wallets as well,” reports Reuters.
The Business of Bitcoin
Businesses and currencies exist for roughly the same purpose: to facilitate the exchange of value. Fiat currencies like the U.S. dollar are positively primitive compared when compared with the promise of blockchain and the emerging token economy, which some technologists have taken to calling an asset operating system.
It’s not likely to be a linear move to the upside, but Bitcoin will find price support if not significant appreciation from its rapidly rising adoption case.
See also: Where the Bitcoin ETF Debate Stands
For HODLers and crypto fans alike, the good news is the adoption trajectory for Bitcoin looks compelling. Looking at the S-curve, which measures adoption of new technologies, Bitcoin is right where it should be according to many market observers.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.