Mass Adoption
When we talk about mass adoption of crypto, I always say that mass adoption will occur when a global merchant, like Macdonald's, integrates a bitcoin point of sale.
The counter argument I always get to this is 'I would never spend my Bitcoin on a burger'. The sentiment seems to be that bitcoin is a store of value and so they wouldn't spend it. I disagree with this, and we are going to look at two scenarios below so that hopefully you can understand why.
Scenario 1.
You get your monthly pay, you DCA $200 into Bitcoin, you go out to Macdonald's for a treat and spend $20 on some food.
Results.
Total Fiat spent - $220
Total Bitcoin bought - $200
Total Bitcoin accumulated - $200
Scenario 2.
You get your monthly pay, you DCA $200 into Bitcoin, you go out to Macdonald's for a treat, you see a lightning network terminal, you pay $20 of Bitcoin on some food. You immediately replace $20 of Bitcoin while waiting for your food.
Results.
Total Fiat spent - $220
Total Bitcoin bought - $220
Total Bitcoin accumulated - $200
So if we look at the results of these two scenarios, we can see that there is only one difference, and that's in the Total Bitcoin bought. Because you are spending your bitcoin and then replacing it, you are actually causing more bitcoin to be bought.
Why is this important if I don't get to keep it?
Good question. Bitcoins price is basically a fight between buyers and sellers. If there are more buyers than sellers, price goes up, if there are more sellers than buyers price will go down. Now think about how many Bitcoin holders visit Macdonald's each month, if every one of those spent an extra $20 on bitcoin it would massively help the buyers team.
Now you can obviously swap Macdonald's for any global merchant, and burgers for any consumer product. And there is no guarantee that the merchant would hold the Bitcoin, they may just sell the Bitcoin therefore adding to the sellers and negating the buyers.
But in my opinion, this would be the domino we need to fall next. We need a recognised global merchant to integrate a Bitcoin Lightning Network point of sale. We then need to use it. If this was successful I believe all other global merchants would follow, and when that was successful I believe they would integrate other Crypto payments. This in my opinion would then be mass adoption.
What about you, what would mass adoption look like in your opinion?
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