46 sats \ 0 replies \ @telcobert 21 Aug 2023 \ on: Mass adoption for Bitcoin bitcoin
You are asking the right question when focusing on companies, as "Bitcoin adoption" is a completely vague concept in the public debate, with all kinds of statistics trying to prove that it may be happening. If some new digital thing is right, it will be adopted very fast, as seen with ChatGPT.
The difficulty has been publicly known right from the outset in 2009. Reticence to learn or lack of knowledge has absolutely nothing to do with it. The difficulty is simply that Bitcoin is volatile.
Companies in the real economy need a stable money. They either have cash piles or they have debt. If either fluctuates 10 % in a day as Bitcoin a few days ago, it can wipe out an annual profit. The adoption of Bitcoin stops before it even starts. As is, it cannot be a money.
That is why the statutes of central banks prescribe a stable purchasing power and value of their currency as a top responsibility. Evidently, if money demand of the real economy fluctuates all the time and Bitcoin base money supply is fixed, then the value of Bitcoin fluctuates, which is the opposite of what's needed. Once people realise (timing is difficult to tell) it will drop like a stone.
I trust that answers your question.
PS: There is a project which is writing code to fix the Bitcoin supply elasticity problem and stabilise Bitcoin's value, Bitcredit Protocol on www.bit.cr (disclosure: I am involved with it). It is a highly controversial project, though, as most hodlers of bitcoin today actually like it to remain a highly volatile asset, not as a rock-steady unit of account. Not that it matters what they want.