Bloomberg ETF analyst Eric Balchunas believes that Bitcoin (BTC) is now in the same adoption phase that took Facebook from 1 billion to 3 billion users.
The comparison portrays Bitcoin's loss of countercultural appeal as a sign of maturation, not decline, where Spot Exchange-Traded Funds (ETFs) act as the catalyst for entry into the mainstream.
ETF expert compares Bitcoin to Facebook's 'uncool' phase: Bullish?
Balchunas, senior ETF analyst at Bloomberg Intelligence and co-host of the Trillions podcast, compares Bitcoin's current phase to when older generations began using Facebook.
“Bitcoin now feels like when your parents started using Facebook. On one hand, it’s not as ‘cool’ anymore because of Boomers, but on the other hand, Facebook's user base grew from about 1 billion to 3 billion after the coolness factor faded, so…,” wrote Balchunas.
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Facebook reached 1 billion monthly active users in 2012, according to Meta. By the end of 2023, that number had risen to 3.07 billion.
The annual growth rate fell below 10% after 2013, but the number of users still increased nearly threefold during this 'boring' period.
Balchunas also called for hard data on Bitcoin holder growth over 3, 5, and 10 years. He noted that BlackRock reported that about 1 million people bought iShares Bitcoin Trust (IBIT) in the first year the fund was available.
Current estimates indicate that there are approximately 106 million Bitcoin owners globally, up from a range of 30 to 50 million in 2021.
IBIT now holds 782180 BTC, which corresponds to about 3.9% of the total amount.
At the same time, some macro analysts point out that 'no-coiners' continue to declare Bitcoin dead, but in reality, it has barely begun.
When an asset loses its identity-driven appeal and attracts broad, passive capital, this transition often marks the beginning of the largest growth phase, not the end.
Can the number of Bitcoin owners follow Facebook's development from 1 billion to 3 billion? The trend after ETF approval points in that direction.
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