When Bitcoin made its debut in 2009, no one except for its creators and a handful of supporters thought that this new form of money would ever amount to much, let alone become an integral part of the financial sector. But once Bitcoin took off and cryptocurrency prices exploded, it became clear that digital assets weren’t just a simple fad that would soon be forgotten, but a phenomenon that could change the face of finance forever.
So, here we are today, with Bitcoin and its altcoin crew still very much alive and thriving, despite the many obstacles and criticism they’ve had to endure over the years. Digital currencies may not be mainstream just yet, but it’s pretty obvious for anyone who cares to take a closer look at their evolution that this is the direction they’re headed. The signs are there, and we’re here to break them down.
Government involvement and regulatory developments
Slowly, governments’ stance on crypto shifted from disinterest to rejection, reluctance, and finally partial acceptance. They started to develop regulatory frameworks for crypto that would allow them to address activities in the sector and provide a certain degree of protection to all parties involved, from developers and crypto companies to users.
Some countries, such as El Salvador and the Central African Republic, went as far as making Bitcoin a legal tender. Others opted for a more cautious approach by drafting guidelines and rules regarding crypto assets or exploring central bank digital currencies (CBDCs).
In the US, crypto regulation is made up of a mix of overlapping federal and state laws instead of a unified system. In 2023, the European Union introduced the Markets in Crypto-Assets Regulation, also known as MiCA, which is considered the most advanced and wide-ranging legal framework so far. While the regulatory landscape is not cohesive, with some countries refusing to even acknowledge digital currencies, efforts to regulate crypto and clarify its legal status continue all across the globe.
Growing institutional participation
When crypto first started out, there was very little interest from traders and investors to join in. This was a perfectly understandable attitude considering that digital currencies were a novel and completely unregulated asset class that seemed to have emerged out of nowhere. The fact that crypto didn’t have the best of reputations, being largely associated with illicit activities, didn’t help either.
However, things changed with time. Retail investors were the first to let their guards down and welcome digital assets into their portfolios. Encouraged by the Bitcoin boom and the substantial gains it delivered to early entrants, many others decided to give crypto a try and started exploring these intriguing assets.
Then came the turn of institutional players to jump in. It took a bit longer for large entities such as banks, asset managers, pension funds, and companies to enter the crypto arena. But as the market matured and regulations were introduced, they turned from mere spectators, cautiously observing from the sidelines, into active investors.
According to the latest data, institutional investments in crypto have reached $21.6 billion in Q1 2025. Major asset managers like BlackRock, Fidelity, and Ark Invest were at the forefront of this trend. In 2024, the United States Securities and Exchange Commission (SEC) approved their applications and those of several other companies for launching the first-ever spot Bitcoin exchange-traded funds (ETFs). A few months later, spot Ethereum ETFs also received the green light. The arrival of these crypto-based products backed by traditional financial organizations boosted crypto’s legitimacy and prompted more institutional investors to enter the space.
Adoption of crypto payments by businesses
Businesses worldwide have also started accepting Bitcoin and several other cryptocurrencies as a payment method, giving crypto holders the possibility to use their digital coins to purchase different goods and services. That’s how crypto was meant to be used in the first place, as an alternative payment mechanism that could bypass traditional financial institutions and let users transfer money directly to one another.
The number of companies that have integrated crypto payment gateways remains limited, as most prefer to use third-party apps to enable crypto transactions. Nevertheless, by the latest count, the grand total of companies that accept crypto payments amounts to approximately 15,000 businesses, out of which about 2,300 are located in the United States.
While buying goods with crypto is not as popular as paying with fiat, given the challenges it entails for retailers, there’s no denying that interest in crypto payments continues to grow. Apple, Alternative Airlines, Aveda, Bloomingdale’s, Christian Dior, Disney, Nike, and Ray-Ban are just some of the brands where people can shop with crypto through dedicated apps.
Increasing familiarity with digital assets
In 2024, statistics showed there were over 560 million crypto holders across the globe, accounting for almost 6.8% of the world’s population. The number of uses in the crypto market is projected to reach 963 million by 2026. This demonstrates that crypto is no longer regarded as a fringe phenomenon, and people have become a lot more comfortable around these assets as they’ve come to understand their potential.
In regions with limited access to banking services that most would take for granted, individuals use crypto as a way to facilitate cross-border payments and remittances. The more obvious crypto’s practical use cases become, the more their adoption increases, bringing them closer to the mainstream.
Judging by the growing regulatory clarity, industry-friendly legislation, rising institutional involvement, and strong demand from the public, it’s evident that the presence of crypto in the modern economy is steadily increasing.
