So I have been thinking about this for some time now, we saw a huge wave of new adopters last year, mainly private people buying through say Coinbase, Bitfinex and Bitstamp. We also saw an increase in demand from South Korea and Japan.
So the question is, what is the next phase in the adoption curve?
Some speculate that we'll see ETFs being approved and thus allow pension funds and major institutional money to flow into Bitcoin, others say we'll see governments buying into Bitcoin triggering a financial arms race.
It is really hard to say when the next adoption cycle would begin as it depends on many factors and not only on the price. Last year in December, we have seen a lot of people investing in bitcoin because mainstream media was showing interest in it. The exponential growth in bitcoin's price caught attention of mainstream media houses and they started making stories on bitcoin. So that was the reason a lot of private investors flooded the market from all over the world. Now who had invested that time at the peak price, they all are seeing heavy losses on their Cryptocurrency account.
So it is really hard to say when the market will see another influx of new investors. Probably when few more countries will legalize bitcoin, then we will see such incident happening.