Several supply chain issues have been identified by numerous reports published in 2014 by the European Commission. These supply chain issues include the importance of logistics and petroleum products, describing that a global supply is mandated to ease the exchange process in every industry. 

The rise in bitcoin’s market cap during 2021 has been unprecedented, and it is thought to be due to bitcoin being used as a hedge against uncertainty on global exchanges. CoinMarketCap shows that Bitcoin is still heavily traded globally and primarily used as a form of payment for goods available internationally without any exchange rate or currency cost by using its reliable platforms. Now you can Register here. It suggests that bitcoin is a viable way to store value during times of uncertainty. In the past, commodity markets such as gold have been taken as a store of value during crises, wars, and uncertainty.

There are three main areas in different industries that utilize bitcoin payments. 

Many energy companies have begun accepting cryptocurrency as a form of payment for goods and services. For example, Energy Mine Energy Ltd., an Australian cryptocurrency mining company, is focused on exploring and producing natural gas. The company accepts bitcoin for regular-priced gas. In addition, Nexo, a cryptocurrency lender, is attempting to fill the oil and gas industry gap by allowing them to take out loans in cryptocurrency instead of the local currency.

The bitcoin market cap is unstoppable; its value is determined by the laws of supply and demand, while other cryptocurrencies are not immune to changes in sentiment. The bitcoin market is currently valued at $1 trillion as of 2022. While this value may seem high, it pales compared to some major companies like Apple, Amazon, and Microsoft, which all have similar values but have not generated as much global interest or attention. 

Why is bitcoin’s market cap skyrocketing?

The recent bitcoin market cap growth is because players in the energy and mining sectors are embracing cryptocurrency payments to gain more revenue. 

A $250,000 trade of Bitcoin was made on an exchange through the electronic communication network (ECN) of a prominent U.S.-based oil and gas trader, driving one day’s volume on the exchange up to almost $3 Million. Several oil and gas traders also trade Bitcoin futures as a regulatory buffer against unfavorable government policy.

Compared with other cryptocurrencies, bitcoin is still being utilized as a store of value during times of uncertainty due to its highly regulated nature. As a result, Bitcoin has remained resilient in times when other coins have fallen by the wayside. For example, exchanges have created opportunities for blockchain projects to help provide solutions in several industries, such as the energy industry and academia.

As bitcoin’s market cap rises, it has attracted the interest of investors and venture capitalists. Several energy companies accept bitcoin as a viable exchange of payment for energy products in countries where the general public does not utilize traditional forms of currency, including Venezuela, Tunisia, and Georgia. 

Bitcoin’s Mass Institution Adoption

The easiest way for bitcoin to gain mass institution adoption is by participating in the world’s largest banks and financial institutions. While many central banks have not yet integrated bitcoin into their systems, some have integrated blockchain technology. 

Several large financial institutions such as UBS, Barclays, and Credit Suisse are considering integrating bitcoin or a form of cryptocurrency into their business to provide customers with more options than just one type of money. In addition, smaller start-up coins like Ripple are being integrated into third-party payment systems, allowing them to compete with larger commercial banks.

Will Bitcoin touch a $2 trillion market cap by 2024?

It’s doubtful that bitcoin’s market cap will reach $2 trillion by 2024, but by the end of 2025, bitcoin seems to be reaching this milestone as bitcoin halving in 2024 will reduce the block reward of bitcoin mining by half. Bitcoin has a maximum supply of 21 Million coins which limits its value and makes it feel more like a commodity rather than easily transferable money. 

Not everyone thinks bitcoin will successfully gain the interest of more prominent institutional investors, but it may still have some life left in it. The recent increase in price may be because there is still a ton of uncertainty when it comes to global markets, and bitcoin has done well during times of volatility. However, for BTC to reach these projections, the cryptocurrency must gather interest from large companies and investors by gaining mass institution adoption.