Jurrien Timmer, the Director of Global Macro at Fidelity Investments, has provided an explanation for the deceleration in the adoption of Bitcoin.

Timmer asserts that the price of Bitcoin is intricately linked to the expansion of its network, which is impacted by factors such as scarcity, monetary policy, and market sentiment.

Although the prices of Bitcoin have been increasing, the growth of its network has been slower, resulting in a gap that could potentially account for the decrease in acceptance.

Timmer draws a comparison between the rise of Bitcoin and Ethereum and past technological advancements. He observes that Bitcoin’s network adheres to a power curve, with values oscillating around it, resulting in a distinctive cycle of rapid expansion followed by a sharp decline.

Timmer posits that the disparity between the price and the expansion of the network could elucidate the deceleration of Bitcoin’s acceptance. In order for Bitcoin to achieve new peaks, its network must see accelerated expansion, maybe propelled by alterations in fiscal policy.

Ki Young Ju, the CEO of CryptoQuant, provides additional analysis into the relatively sluggish adoption of Bitcoin. Ju contends that Bitcoin has transitioned from its original designation as “P2P Electronic Cash” to being seen as “Digital Gold,” with institutions opting to store it for extended periods rather than engaging in regular trade.

As a result of this change, the conventional methods of measuring adoption may no longer be relevant. Ju proposes a novel approach to examining Bitcoin transactions in order to gain a deeper understanding of its usage.

Analysis from specialists such as Timmer and Ju, in addition to increasing institutional investments, emphasize the disparity between the price of Bitcoin and the expansion of its network.

Although the adoption of Bitcoin has been relatively modest, the increasing utilization of Bitcoin and the growing interest from institutional investors indicate a positive future for Bitcoin.