Billionaire venture capitalist Chamath Palihapitiya has been talking about Bitcoin in his latest interview. He sees 2024 as the year that the asset will become mainstream, catalyzed by exchange-traded funds (ETFs).
On January 7, the Sri Lankan-born Canadian and American investor said that the most important trend in 2024 will be the mainstream adoption of Bitcoin.
Bitcoin to ‘Cross the Chasm’
Commenting on the potential approval of spot Bitcoin ETFs, Palihapitiya said, “This is the most important year for Bitcoin that has ever existed.”
“This is the moment for Bitcoin to, to use that old term, cross the chasm and really see mainstream adoption where our parents and our grandparents understand what it is, can buy it, and then do buy it,”
Bitcoin will become a part of traditional finance by the end of 2024 if all of this comes to pass, he said.
“Crossing the chasm” refers to a concept in the technology adoption lifecycle. It was popularized by Geoffrey A. Moore in his book of the same name. It describes the gap between the early adopters of a new technology and the early majority of more pragmatic users.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Essentially, it refers to the difficulty of transitioning from the early market of innovators and early adopters to the mainstream majority market. There is often a “chasm” or gap between those two groups that is difficult to cross.
The “chasm” is that massive gulf at just above 10% adoption that represents how adoption shifts from “early adopters” to the “early majority,” explained crypto YouTuber Luke Mikic.
For technologies like Bitcoin, crossing the chasm would imply moving from visionary cryptocurrency enthusiasts to more mainstream business and consumer adoption. This is often seen as the key challenge for mass adoption.
Palihapitiya’s latest comments are a stark contrast to his “Crypto is dead in America” claims in April 2023.
ETF Fever Heating Up
The chasm jumping is only likely to occur if the US Securities and Exchange Commission approves one or more spot Bitcoin ETFs this week.
Failure to do so will likely send BTC prices back below $40,000. However, analysts and industry experts remain confident that this is unlikely to happen.
On January 8, ETF Store president Nate Geraci highlighted things to look out for. He said there will be some remaining fee disclosures, especially from BlackRock and Grayscale. Fee competition will be pivotal in this race to increase fund collateral and clients.
He also predicted that Grayscale will convert or ‘uplist’ its Bitcoin Trust at the same time. It currently has a huge advantage with $27 billion in assets under management already.
There will also be a massive marketing blitz putting Bitcoin on screens and in the media everywhere across the United States.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Source: https://beincrypto.com/bitcoin-cross-chasm-2024-chamath-palihapitiya/