7 min readBitcoin has often been seen as a digital playground for tech enthusiasts and libertarian idealists. Critics dismiss it as a “nerdy niche project,” disconnected from mainstream finance and commerce. However, this view is far from accurate. From its origins as a grassroots experiment to its current status as a globally embraced financial asset, Bitcoin has shown its transformative potential across numerous sectors.
Peer-to-Peer Technology for Payments
Bitcoin’s journey from an obscure whitepaper published by the pseudonymous Satoshi Nakamoto in 2008 to a multi-trillion-dollar asset class is unique. Bitcoin was the first decentralized digital currency designed to enable peer-to-peer transactions without intermediaries. Beyond its technological innovation, Bitcoin has become a solution to many financial inefficiencies.
Bitcoin’s early adopters were a mix of tech-savvy individuals and decentralization advocates. These grassroots beginnings laid the foundation for Bitcoin’s rapid expansion into retail markets. This adoption is supported by impressive metrics: according to exchange Crypto.com [1], the global cryptocurrency user base has reached 617 million owners. Monthly active Bitcoin addresses number between 30 and 60 million, with 220 million unique addresses being used monthly.
The proliferation of Bitcoin ATMs—now numbering over 38,000 worldwide [2] —and point-of-sale systems is helping bridge the gap between digital and physical retail spaces.
Bitcoin in Everyday Use
Bitcoin and other cryptocurrencies are being used more than ever, even in regions like Europe. One striking example is the war between Ukraine and Russia: according to the firm Elliptic [3] , cryptocurrencies like Bitcoin, Ether, and USDT (a dollar-pegged stablecoin) accounted for over $210 million in donations to Ukraine. Globally, cryptocurrency adoption for online shopping is also on the rise. A survey by Arlington Research for Kaspersky [4] found that 44% of respondents believe crypto payments will become a common option for online shopping. Moreover, 68% of those surveyed expressed a desire for more opportunities to use crypto for purchases, such as video games, groceries, and even cars.
According to research from Future Market Insights [5] , the global crypto payments market is expected to grow at a compound annual growth rate (CAGR) of 14.1%, increasing from $1.3 billion in 2023 to $4.8 billion by 2033. Companies like BitPay and Coinbase Commerce enable businesses to accept Bitcoin payments seamlessly, driving adoption by retailers and e-commerce platforms. Payment networks like Visa and Mastercard have also partnered with crypto firms to launch debit cards compatible with cryptocurrencies, highlighting the increasing integration of Bitcoin into traditional payment systems.
The Case for Remittances
Bitcoin is a lifeline in regions where traditional banking infrastructure is limited or inaccessible. Over 1.4 billion people globally remain unbanked [6], and Bitcoin provides an alternative with its low-cost, borderless transaction system. For example, remittance corridors benefit significantly from Bitcoin’s reduced transaction fees compared to traditional services.
Even in countries with robust banking systems, cryptocurrency solutions offer unique advantages. In Sweden, for example, the BankID system can pose challenges for legal immigrants: according to estimates by the Payments Inquiry [7], almost 10% of the adult population has no access to BankID. Bitcoin offers a more accessible and flexible alternative for money transfers and custody.
Growing Interest From Institutions
In the last decade, Bitcoin adoption has expanded beyond public users to include major institutions. This journey into institutional finance began with skepticism. Early critics dismissed Bitcoin as a speculative bubble. Today, however, Bitcoin is increasingly recognized as a legitimate asset.
This shift is evident in the launch of crypto ETFs in the United States, which attracted record inflows, surpassing gold ETFs. Digital asset investment products now represent more than $140 billion [8](as of December 31st, 2024), with potential for significant growth as intermediaries begin distributing them more widely.
Bitcoin’s growing appeal is also tied to its use as an inflation hedge. With inflation reaching record levels worldwide, many investors seek protection through hard assets like gold or Bitcoin. Bitcoin shares qualities with gold—scarcity and longevity—while offering additional advantages like easier transferability and auditability through blockchain technology, a decentralized digital ledger.
Companies and National Reserves
Many companies have adopted Bitcoin to enhance their treasuries, as highlighted by a dedicated website [9]. MicroStrategy, for example, has made Bitcoin a core part of its development strategy and holds over 140,000 BTC. Other notable adopters include Tesla and SpaceX, which have added Bitcoin to their balance sheets. Recently, Deutsche Telekom, a German telecommunications company, announced plans to mine Bitcoin.
At the national level, governments are also embracing Bitcoin. El Salvador and Bhutan have led the way, with El Salvador making Bitcoin legal tender in 2021. The United States recently announced plans to create a national Bitcoin reserve under President Donald Trump’s administration, signaling a broader acceptance of Bitcoin as a strategic asset. Other nations, such as Switzerland, Russia, and Brazil, are rumored to be exploring similar initiatives.
According to Filip Karađorđević, the hereditary prince of Serbia and now an asset manager, “At the nation-state level, strategic reserves are already happening behind closed doors.” This suggests that Bitcoin has transitioned from being a niche project to a critical part of global financial infrastructure.
[1] https://crypto.com/en/research/crypto-market-sizing-report-h1-2024
[2] https://www.statista.com/statistics/343127/number-bitcoin-atms/
[5] https://www.futuremarketinsights.com/reports/crypto-payment-gateways-market
[7] https://www.regeringen.se/rattsliga-dokument/statens-offentliga-utredningar/2023/03/sou-202316/
[8] https://cointelegraph.com/news/crypto-etp-2025-start-585-million-inflows-coinshares
