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Last Updated on November 15, 2023 by Dr. Gabriel O’Neill, Esq.
The world has seen a significant rise in cryptocurrency adoption rates. In 2021, global adoption rates of crypto rose over a staggering 880%, according to Chainalysis. Besides the US and the UK, countries in Africa, Latin America, and Asia are showing the highest crypto adoption rates, according to data gathered from Statista.
In the case of the US, a survey conducted by The Ascent found that 56% of the population invested in at least one type of cryptocurrency in 2022. This was seen as a drastic increase from 33% in 2021.
What is Driving Cryptocurrency Adoption in the United States?
One of the many reasons that cryptocurrency adoption is increasing is the easier use of digital assets for payment purposes, such as for food, tickets, and so on.
Insider Intelligence also claims that investing in cryptocurrency has become less complicated over the years. Consumers are able to purchase crypto through different apps like Coinbase, Binance, Gemini, eToro, SoFi Active Investing, and many others with ease.
Crypto adoption is increasing particularly in the US as younger Americans search for good investments, even though investing in crypto comes with several risks. There are numerous other factors that are driving crypto adoption in the country.
- Most states have implemented crypto-friendly laws. For example, lawmakers in Arizona have permitted using crypto for paying taxes
- There are various methods through which cryptos can be acquired, such as brokers or exchanges
- People don’t want to miss out on everything crypto-related
- Crypto being accepted for online payments
- Renowned companies like Tesla and PayPal adopting cryptocurrency
The United States is also known as a hotspot for crypto-related organizations. This includes several exchanges like Kraken and Coinbase.
Moreover, more and more businesses are accepting crypto payments now. This will affect how people make payments in the coming years, such as through digital cards and wallets. As a result, cryptocurrency adoption rates will further increase.
Who Is Investing In Crypto?
74% of men invested in crypto, while the percentage of female crypto investors was 26%, according to a survey conducted by Finder. Crypto adoption rates for both genders are expected to increase due to the growth within the industry and the use of cryptocurrency as a form of payment and investment.
Age plays a major role. The largest crypto-owning group consists of 25 to 34-year-olds. This is followed by adults ages 35 to 44. Lastly, the smallest group consists of seniors 65 and above.
Younger investors have bigger expectations from blockchain technology and are investing more in crypto. They are looking forward to the increase in prices in the future.
On the other hand, older investors are still hesitant due to market volatility. However, more of them are investing in crypto now since many retirement funds have started offering it as one of the options.
Global Crypto Ownership Stats
Cryptocurrency adoption experienced an incline all over the world. Over 300 million people owned or used cryptocurrencies in 2022 globally. The worldwide crypto market is said to be $1.09 trillion as of August 2022.
In 2021, Statista conducted a survey on the global ownership and use of crypto. The survey showed the comparison between the total number of crypto users and non-crypto users within the population of each country.
Nigeria scored the top position at 42%, while Thailand came in second place at 31%. The third position went to the Philippines at 28% and the fourth place to Vietnam at 27%.
People from these locations who work in foreign countries prefer using crypto as a form of payment. It’s an affordable option for them to send money back home through crypto. Also, the use of cryptocurrency by the Central Bank of the Philippines and the installment of cryptocurrency apps within phones in Nigeria have further increased its adoption rates.
Another region where cryptocurrency experienced exceptional growth was Latin America. Peru had the highest adoption rates at 16%, while Colombia, Mexico, Brazil, Chile, and Argentina also reached double digits. In Europe, both Greece and Switzerland had the highest adoption rates at 11%.
On the other hand, Japan was seen to have the lowest cryptocurrency adoption rate at 4%. Denmark was another country with the lowest crypto adoption rates.
How Crypto Mining Affects Adoption Rates
Crypto mining has had a considerable impact on adoption rates. Until recently, China had the largest Bitcoin mining community. After the Chinese government prohibited crypto in July 2021, the mining industry moved to other countries, primarily the US.
This resulted in the United States moving to the top position. 35% of Bitcoin mining now takes place in the US, according to Cambridge. Kazakhstan houses 18% of the world’s crypto mining rigs, while Russia has 11%, Canada 10%, and Ireland 5%.
Cryptocurrency Adoption in the Future
In 2021, 47% of Americans were looking forward to buying products or services through cryptocurrencies, while 42% of them believed that this will soon replace the use of traditional currencies.
Over 3.6 million Americans will most probably use some sort of cryptocurrency for payment in 2022, based on the latest reports from Insider Intelligence. By the end of the year, the total number of crypto users will reach 33.7 million in the United States.
Americans are also interested in using crypto rewards credit cards. 61% of them confirmed that they would consider getting a credit card that comes with crypto rewards. This percentage has slightly decreased from 2021 when 65% of Americans showed interest in using a crypto credit card.
45% of people who never owned any cryptocurrency also said that they would consider getting a crypto credit card. On the other hand, 73% of Americans who already own some form of cryptocurrency showed clear interest in using a crypto credit card.
Final Thoughts on Cryptocurrency Adoption
Crypto is a trillion-dollar market now and it will continue to grow. Sub-markets such as wallet apps, crypto ATMs, and trading platforms have also seen tremendous growth. With an elaborate ecosystem consisting of companies, investors, miners, and consumers, cryptocurrency adoption rates show no signs of slowing down.
Many people might doubt the credibility of cryptocurrency due to its volatile nature. However, every year the overall confidence in crypto continues to grow. In turn, numerous businesses are thinking of or have already added cryptocurrency as a payment option.
Investment in cryptocurrency can be risky since prices are always swaying up and down. But it has shown great potential and the crypto market is predicted to reach exponential heights in the future.
About the author
Dr. Gabriel O'Neill, Esq., a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. O'Neill guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.
As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Gabriel O'Neill, Esq., is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.