Trends for Bitcoin: insights from the event Bitcoin 2022

Publicado em 2 de maio de 2022.

Tempo de leitura 7 minutos de leitura

In April, more than 30,000 people converged on Miami with one interest in mind: finding out about the latest trends for Bitcoin and the environment surrounding this cryptocurrency. The occasion? Bitcoin 2022, the biggest Bitcoin event in the world!

And our team were there, taking notes and exchanging experiences with tech and finance professionals and enthusiasts from around the world. In this article, we share some of what we saw, based on insights selected by Lucas Zarife, Business Architect at DOCK.

Read on to find out more!

 

Five insights and trends for Bitcoin

 

It’s hard to sum up four days of a packed schedule that covered topics like legislation, access, cryptocurrency security, and Bitcoin trends – as well as many other issues that are important for its evolution.

Thinking particularly about the challenges and opportunities in Latin America, Lucas Zarife selected the five topics that are really worth paying attention to:

 

1. The payments industry is moving at the speed of light

 

As people decide to join in the new economy, buying and accumulating Bitcoins, new companies and technologies are being developed and integrated into the traditional payments ecosystem.

Companies like CashApp, BitPay, and Strike have announced new features for their apps that allow users to buy, store, transfer, and spend Bitcoins far more easily through the Lightning Network – a Bitcoin protocol that promises to resolve scalability issues with free and practically instantaneous transactions.

Check out this demonstration by Jack Mallers, CEO of Strike:

 

2. Big players seek out institutional custody


More and more individuals and businesses are turning to Bitcoin as a hedge against inflation. Fintech companies and the innovation layer of the market have picked up on this growing demand and are channeling resources into developing an environment capable of integrating the old Wall Street world of finance with this new economy.

The biggest challenge right now is how to deal with the high complexity of the core technology, the blockchain, and build all the security and money laundering prevention (MLP) controls. The main features to look out for in an institutional crypto custodian are:

  • a secure safe
  • a transparent custody protocol
  • proof of reserve, which is basically the provision of proof that the funds have not been lost, which is a key feature of the Bitcoin blockchain by design.

 

3. Opening the doors to retail


What has to be done for a 100-billion-dollar market to evolve to a market worth one trillion dollars, ten trillion dollars, and so on? The answer has to do with retail, and has three main points:

  • Accessibility: there have to be tools that are easy for businesses and customers to access so they can do transactions with each other with little or no friction.
  • Financial education: this is a key point for Brazil, a country that was a pioneer in the traditional financial market, but which isn’t progressing at the same speed as other markets when it comes to Bitcoin and other cryptocurrencies.
  • Simple marketing, simple product: by adopting clear, powerful communication with partners, the market should be able to provide simple access to the tools needed for capital accumulation (saving) and wealth creation with Bitcoin.

Watch this session from Bitcoin 2022 for a more in-depth discussion of the topic:

 

4. New regulations promise to open up the market to innovation


Kevin O’Leary, one of America’s best-known investors and a panelist on the famous TV show Shark Tank, presented a stimulating and upbeat session on the regulations and policies being prepared for the industry.

The regulators’ main concern when it comes to Bitcoin is its energy consumption.

Proof of work (known as PoW) is an internal consensus mechanism that generates high energy consumption by crypto miners, but is indispensable to protect Bitcoin from attacks, keep it decentralized, and sustain its economic value.

Knowing this, big players like Black Rock are moving the industry towards using renewable energy sources, like solar, wind, and hydro, for Bitcoin mining. That will make producing new Bitcoins far more environmentally friendly and aligned with ESG policies, opening the way for billions of dollars to enter this market securely.

 

5. Bitcoin, not blockchain


Although Bitcoin 2022 was attended by some companies that work with decentralized finance (DeFi) and other blockchains, the event focused on Bitcoin, not on other cryptocurrencies.

While other cryptocurrencies are still attempting to prove their effectiveness and usefulness in solving real-world issues, Bitcoin still holds strong as the leading cryptocurrency because of its simplicity and single purpose: to be a digital peer-to-peer currency.

Bitcoin is based on a publicly auditable protocol that belongs simultaneously to nobody and to all its participants. It is essentially an accounting ledger that is distributed across thousands of machines around the world, and this is what makes it practically indestructible.

 

As the protocol has a set cap of 21 million coins, it meets the technological need of being a digital currency built for the 21st century, offering the same economic properties that made gold the reserve of choice around the world for many centuries.

For these and many other reasons, most of the panelists’ and participants’ attention was turned towards integrating this new form of hard currency with every sphere of society, rather than adapting its underlying technology, the blockchain, to the development of new applications.

Keen to find out more from Bitcoin 2022? Check out this playlist from Bitcoin Magazine with the main debates and panels from the event.

The future of Bitcoin and other cryptocurrencies is promising. And we want to be part of it!

 

According to the State of Blockchain 2021, a study by CB Insights, there was a 713% year-on-year increase in investments in cryptocurrency startups. And public companies already have over 15 billion dollars in Bitcoin allocated to their investment portfolios.

With such a large volume circulating in this market, the future of cryptoassets looks bright. And it’s worth pointing out that cryptocurrencies are no longer just for a handful of enthusiasts, but a real way of doing transactions with the potential to engage a high volume of users of every profile.

That’s why at Dock we’re keeping a close eye out for the latest trends in Bitcoin and other cryptocurrencies. We decipher the tech so our clients can exploit new these opportunities and grow their business.

More news out shortly here!

 

Summary of trends for Bitcoin from the event Bitcoin 2022

  • A subject that cannot be overlooked in any discussion of Bitcoin trends is the Lightning Network: a new technology that integrates the cryptocurrency with the payment industry, holding out the promise of cheaper, faster Bitcoin transactions;
  • With inflation so high, people are increasingly turning to Bitcoin, offering fintech companies fresh security and integration challenges as they work to meet the demands of the big players for international custody;
  • Accessible financial education and marketing are fundamental for financial service companies that want to scale up and take advantage of the opportunities that the new trends in Bitcoin offer;
  • Bitcoin mining using renewable energy will ensure ESG compliance and pave the way for the entry of billions of dollars onto the market;
  • Cryptocurrency investments continue to grow, with Bitcoin still holding its own as the leading option.

 

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