As the world increasingly turns to digital transactions, Bitcoin, the most popular cryptocurrency, continues to gain popularity. However, the journey towards its widespread adoption is not without challenges. Here are some insights on the progress and challenges facing Bitcoin adoption in many parts of the globe based on the travel experiences of Paco de la India.
Volatility and Adoption
Bitcoin’s volatile nature has made people hesitant to rely on it in everyday transactions, according to Bitrefill’s interview with Paco de la India. Paco is a traveler who has embarked on a journey to see the world using only Bitcoin.
In his travels to 40 countries across South America, North America, and Africa, he has observed that stablecoins like USDT are more popular among locals who prefer to hold their Bitcoin rather than spend it. This presents a challenge for Bitcoin’s adoption in areas where stablecoins are favored over Bitcoin. It’s worth noting that stablecoins are pegged to a stable asset, which makes them less prone to market volatility.
Bull Market Generosity
During bull markets, people tend to be more generous, making it easier for Paco to receive donations. However, during bear markets, things become more challenging, translating to reduced contributions.
This has been the experience of many Bitcoin users globally. Nonetheless, Paco’s journey highlights the power of community crowdfunding in supporting innovative initiatives.
Paco’s journey was not without interruptions. Regulatory uncertainty affected some of his sponsors, and the shutdown of peer-to-peer trading platform Paxful affected his travels. Regulatory challenges are a significant hindrance to Bitcoin adoption in some regions, as governments seek to regulate the cryptocurrency sector. Nonetheless, this has not dampened the spirit of Bitcoin advocates globally.
Paco believes that educating people is key to advancing Bitcoin adoption, particularly in utilizing the cryptocurrency in daily transactions. The core of advancing Bitcoin adoption is to show its benefits over traditional payment methods.
Bitcoin is a global currency, which makes it ideal for cross-border transactions, making it an attractive option for businesses and individuals looking for cheaper and faster ways to move money. Its decentralized nature also makes it more secure than traditional payment methods.
Paco De La India’s Full Interview
Here’s a look at Paco’s full interview:
Bitcoin adoption is taking place gradually, but there is a need for accelerated efforts to increase its global acceptance. Challenges such as regulatory uncertainty, market volatility, and lack of education on the benefits of using Bitcoin still persist. However, initiatives like Paco’s journey highlight the power of community support in advancing innovative ideas. As more individuals and businesses embrace the potential of Bitcoin, its adoption is set to continue growing globally.
In terms of stability, stablecoins like USDT are considered better than Bitcoin as their value is pegged to a stable asset such as the US dollar, reducing the risk of volatility. This stability makes them more suitable for everyday transactions, and people are more likely to use them for payments. On the other hand, Bitcoin is considered better than stablecoins as a long-term investment as it has historically shown to have a higher return on investment. Additionally, Bitcoin has a limited supply, making it a deflationary asset, whereas stablecoins can be created at will, making them an inflationary asset.
Both Bitcoin and stablecoins have their own unique advantages and disadvantages. Stablecoins are better for everyday transactions, while Bitcoin is better for long-term investments. However, it is important to note that stablecoins are not entirely stable, and their value can fluctuate based on the stability of the asset they are pegged to. On the other hand, Bitcoin’s volatility may deter people from using it for everyday transactions, but it has a strong network effect and is more widely accepted than stablecoins.
Ultimately, the choice between Bitcoin and stablecoins comes down to the individual’s preferences and use case. If someone is looking for a stable asset to use for everyday transactions, stablecoins might be the better option. If someone is looking for a long-term investment with potentially high returns, Bitcoin might be the better option.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.