Bitcoin price spike: how much of this is down to its utility?

  • Hodling Bitcoin is utility
  • The crypto asset could still go on to sell for its all time high

In recent times, Bitcoin price has witnessed a massive surge. The coin sold for well over $19,000 and this led to many predicting that the crypto asset could go on to reach its all time high price.

But this was not just the case, report also showed that Bitcoin had grown to become the most adopted asset in the universe. Willy Woo, popular crypto analyst, tweeted that the popular cryptocurrency adoption curve could be compared to the likes of Internet mobile accounts, and PayPal accounts.

Essentially, the chart shows that Bitcoin adoption has grown enormously in recent times. Many still question if this adoption is driven by the coin’s utility. 

A recent tweet by Peter Schiff, an American stockbroker, questioned this but the response by Woo sheds more light to how Bitcoin holders have played a part in the asset utility.

According to Woo, adoption of the crypto asset is similar to using it and its economic feature. These features can only be accessed through holding the asset. 

This line of thought has always generated some level of attention as most people believe that utility should mean the use of the asset in carrying out transactions i.e. as a means of paying for goods and services.

Hodling Bitcoin is utility

In the twitter thread, it was also revealed that hodling Bitcoin is a utility.

It was stated that before Bitcoin price had a massive growth, millions of coins were locked away in crypto wallets. 

This was proved using the logic that if holding does not depict adoption, then buying and holding gold in a vault would not also depict adoption either.

And since holders of the rare metal do not have to carry out transactions to prove their adoption, then holding BTC should be enough proof of its adoption.

Bearing this in mind, BTC hodlers are playing a part in the rise of the coin value as they increase its adoption and liquidity.

Kamsi King

Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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