Introduced in 2009, the world’s largest cryptocurrency, Bitcoin, may now boast a user base surpassing that of the Internet in 1997. This surge in users hints at the possibility that Bitcoin is on the cusp of its final cycle before widespread adoption and hyper-bitcoinization.
A recent meme circulating across crypto Twitter drew attention to Bitcoin’s active user count, likening it to the early days of the Internet. However, the reality is even more compelling: Bitcoin likely surpasses the user count the Internet had when Amazon made its Wall Street debut.
This pivotal moment suggests that Bitcoin investors may be nearing the end of a window of opportunity to capitalize on the remarkable market returns fueled by growing user adoption.
Drawing from our sources, which indicate 70 million Internet users in 1997 and an estimated 435 million Bitcoin users in 2024, the economics of this trend present fascinating prospects for investors. Even with the potential for billions more users to adopt Bitcoin, the fact remains that there will only ever be a maximum of 21 million BTC in circulation on the original Satoshi blockchain.
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This scarcity factor is likely contributing to the exponential surge in Bitcoin’s market value.
Comparing Bitcoin in 2024 to the Internet in 1997, recent data from Crypto.com revealed approximately 580 million crypto users globally, with a significant portion owning Bitcoin. This implies a substantial user base for Bitcoin by 2024.
Contrastingly, the Internet had a fraction of Bitcoin’s current user count in 1997, with only 70 million users online—a notable year marked by the Miami Marlins’ World Series victory and Amazon’s IPO at $18.
Reflecting on investment opportunities, consider the scenario of investing $4,000 in Amazon shares during the Internet dot-com boom of 1997. By last year, that investment would have burgeoned to approximately $7.3 million. However, adhering to Warren Buffett’s advice to invest in the S&P 500 ETFs would have yielded a considerably lower return.
Buffett’s skepticism toward Bitcoin and cryptocurrencies underscores his preference for established Internet and computer businesses like Amazon and Apple.
Meanwhile, the Internet Computer (ICP) has emerged as a contender in the decentralized cloud computing realm, with its network token surpassing $17 and a market cap exceeding $8.5 billion. Positioned as a rival to Amazon’s cloud computing business, the Internet Computer hosts cloud services on its own network of devices, presenting a compelling narrative of technological evolution and competition in the digital landscape.
As Bitcoin continues its meteoric rise and the Internet ecosystem evolves, investors are faced with intriguing opportunities that may shape the future of finance and technology.