The next 12 months could finally be a turning point for cryptocurrency. This isn’t the first time such claims have been made since Bitcoin’s launch in 2009, but widespread adoption has always seemed just out of reach.
Critics often point to challenges: crypto’s association with money laundering, its volatility, lack of physical presence, high energy consumption, and a reputation for attracting speculators who risk losing big. These arguments have held back its mainstream acceptance.
Changing Perceptions
Despite these hurdles, perceptions about crypto are steadily shifting. While Bitcoin has been used for illicit activities, many offenders are caught thanks to blockchain’s traceable digital footprint. Traditional banking isn’t immune to bad actors either, with some institutions enabling money laundering on a larger scale.
Governments are also getting better at addressing crypto-related crimes, partly due to the financial incentives. For instance, the U.S. government holds 198,000 confiscated Bitcoins worth $20 billion, and similar reserves are held by China and the UK.
Crypto’s price volatility is often criticized, but stocks are no stranger to ups and downs. As Charlie Morris from ByeTree notes, Bitcoin’s average volatility over the past year was comparable to that of Rolls-Royce and Burberry.
Big Moves Ahead
A major shift in crypto’s status may come with the U.S. embracing it at a strategic level. The incoming President, Donald Trump, has proposed storing Bitcoin in a national reserve, possibly alongside gold in Fort Knox. This move could legitimize crypto in ways never seen before.
Trump’s pro-crypto stance helped Bitcoin reach a record high of $108,000 after his election victory. His plans to ease regulations and promote crypto adoption include appointing crypto-friendly figures like Paul Atkins to lead the SEC and David Sacks as an adviser for crypto and AI.
This new policy direction may push other countries to follow suit. However, in the UK, enthusiasm for crypto has waned since Rishi Sunak, a crypto advocate, left office. His successor, Keir Starmer, appears less interested, leaving Britain at risk of falling behind.
Global Adoption on the Rise
Meanwhile, crypto adoption is booming in the U.S. and Europe. Bitcoin exchange-traded funds (ETFs) like the iShares Bitcoin ETF have seen massive success, holding billions in assets. Europe has followed suit, with several major companies launching Bitcoin ETFs.
In contrast, the UK lags. While Bitcoin ETFs have been listed on the London Stock Exchange, they’re restricted to institutional investors, leaving private investors locked out. UK financial institutions also remain wary of including crypto in their portfolios, viewing it as an unconventional asset.
Crypto’s Unique Challenges and Opportunities
One of the unique aspects of crypto is its 24/7 operation, unlike traditional markets tied to banking hours. This flexibility can be challenging for institutions used to conventional schedules, but it aligns with the digital-first nature of modern finance.
On the environmental front, Bitcoin mining does consume significant energy. However, critics often ignore the environmental impact of other industries like construction, travel, and agriculture, which are equally or more resource-intensive.
Looking Ahead
With the U.S. potentially leading the charge under Trump’s administration, crypto could see its most significant leap forward yet. As global markets adapt, the UK must decide whether to embrace this shift or risk being left behind.
2025 might just be the year crypto truly prospers.
