One of the things the most governments the world over can’t do is run anything effectively. The only things many government run are the post office and the railroads, and both are often bankrupt. Add in fiat money and you’re in trouble, but there’s crypto to the rescue. As the value steadily increases, crypto is touted to do to banks what emailing did to the postal industry. The upsurge of global crypto ownership is the surest sign yet that skeptics are softening, and heads are swiveling as more people finally accept it as alternative money that offers value.
Introduction
A 2022 report by crypto payment gateway Triple-A shows the cryptocurrency market added at least 119 million new users between January and December 2022, bringing the total number to 420 million. The most exciting thing about the prevailing crypto adoption trends is the fact that the increase happened in last year’s brutal bear market when everyone would have expected a reduction, if not stagnation, of crypto ownership.
A report by Crypto.com dubbed “Crypto Market Sizing combining Bitcoin and Ethereum’s on-chain data showed the most substantial growth for cryptocurrency adoption took place in April 2022 when the Central African Republic (CAR) followed in the footsteps of El Salvador in declaring Bitcoin (BTC) as cryptocurrency. The research team also found that global investment bank Goldman Sachs added fuel to the fire when it offered its pioneer BTC-backed loan during the same month.
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In the interim, the number of Ethereum (ETH) owners surged 263% from 24 million to over 87 million by December 2022, which is approximately 20% of the estimated 420 million users. The report further indicates that The Merge further catapulted Ethereum’s growth. The report further observed Ethereum’s growth exceeded Bitcoin’s during the entire year apart from April.
Understanding Global Crypto Ownership
A 2022 Digital Global Overview Report on the demographics of crypto users shows the number of people shows at least 10% of working-age internet users own some form of cryptocurrency, with Thailand leading at 20%. Available data indicates that digital assets are top-rated in developing countries with unstable local currencies. Good examples include the Central African Republic and Turkey, where local currencies lost significant value against the U.S. dollar.
Analyzing the Profile of Crypto Users
Just like they creep in the kind of weather they can’t stand because can’t get them tanned, a closer look at the demographics of crypto users paints the crypto sphere blue. Girls are staying put and aren’t coming out in the crypto winter since more men than women likely to own cryptocurrencies. A report by GWI shows at least 12.7% of male internet users of the 16 to 64 age bracket own a digital asset compared to 7.2% of females. The report further shows younger Millenials are likely crypto owners with ownership diminishing beyond age 35.
Moreover, at least 5% of internet users in the 55 to 64 age bracket own cryptocurrency, indicating the likelihood of a ‘digital divide’ happening in the near future. Further analysis shows that at least 63% of crypto users are male, while 37% are female. 72% percent of users are aged less than 34 years, 71% hold a bachelor’s degree or higher and most annual incomes are over $25,000.
Exploring the Regional Variances
Per the statistics, there is a sustained average 4% adoption rate, with a user map showing Asia leads the pack with over 260 million users, followed by North America with at least 54 million users. Africa comes in at 38 million, South America with 33 million, Europe and Oceania close at 31 million and 1.5 million users, respectively.
A further breakdown of available country-by-country data revealing the regional variation of crypto ownership shows that the United States has the most significant number of crypto users at 46 million. India and Pakistan are following their heels, with 27 million and 26 million digital asset users, respectively, with Nigeria having 22 million and Vietnam 20 million users.
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Challenges and Opportunities
Like all new creations, there are a slew of challenges and opportunities in the crypto ecosystem at a time when cryptocurrencies are gradually taking center stage. The increasing prominence of crypto assets amid birthing pangs predicts a system poised to withstand into the foreseeable future. As the relatively nascent virtual assets undergo further development, it’s noteworthy that adoption by mainstream retailers is a significant trend showing an increasing acceptance, especially of Bitcoin and Ethereum as payment methods.
As cryptocurrencies continue their march towards global adoption, developers must especially work hard to disassociate digital currencies from their association with crimes and illegal activities. However, the lack of crypto regulations presents unprecedented advantages and disadvantages within the industry. Regulators must ensure they manage the delicate task of safeguarding the interests of consumers and investors. While regulators battle with the issue of accurately classifying cryptocurrencies, developers, investors, and consumer are crossing their fingers, hoping that over-regulation won’t stifle innovation within the industry.
Future Trends and Projections
Over the last few years, crypto has gone from a disregarded asset – like the fine print on terms and conditions – to a popular investment – better than folding your money over to double it. The growing popularity indicates that the future projections for crypto ownership are optimistic, even though Bitcoin and other cryptocurrencies remain incredibly volatile. Governments worldwide are at different stages of analyzing cryptocurrency regulations while reviewing digital assets and assessing the risks they pose for traditional financial systems.
Numerous brands, including Microsoft, AT&T, and others, are already accepting crypto as a form of payment or currency. An Analytics Insight report predicts a possible BTC price rise by the end of 2023. The Ascent, quoting Digital Assets Council of Financial Professionals founder Ric Edelman believes over 500 million people will soon own cryptocurrency.
Conclusion
Just like some Americans were told if they voted for Hillary Clinton Obamacare would continue and America would go to war with Syria… (How wrong they were), it may not be entirely possible to predict the cryptocurrency market’s future with utmost certainty. However, it’s reasonable to assume that the technology will advance as we head toward the end of 2023. The approaching Bull Run and enhanced transaction speeds scalability will create further resurgence and enable the cryptocurrency market to gain new momentum.
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Moreover, the emergence of new technologies like non-fungible tokens (NFTs) and decentralized finance (DeFi) are making cryptocurrencies even more attractive. If you don’t want to enter the crypto space unschooled or unclothed, you need to sharpen your skills in this nascent technology since many experts believe it is the future of money.
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