According to a new survey by U.S. cryptocurrency exchange Gemini, nearly half of all owners of cryptocurrency in the United States, Latin America, and Asia Pacific purchased the digital assets for the first time in 2021.
The survey, which polled nearly 30,000 people in 20 countries between November 2021 and February 2022, found that 2021 was a record-breaking year for cryptocurrency adoption, with inflation in particular driving adoption in countries that have experienced currency devaluation, according to the report.
According to Gemini, Brazil and Indonesia lead the world in crypto adoption, with 41 per cent of people in both countries reporting crypto ownership, compared to 20 per cent in the US and 18 per cent in the UK.
Gemini found that 79% of people who reported owning crypto last year said they chose to purchase the digital assets for their long-term investment potential.
People who do not own cryptocurrency but live in countries where their currency has depreciated against the US dollar were more than five times as likely to say they planned to buy cryptocurrency as an inflation hedge.
Only 16 per cent of Americans and 15 per cent of Europeans thought that cryptocurrencies protect against inflation, compared to 64 per cent in Indonesia and India, for example.
In the last five years, the Indian rupee has lost 17.5 per cent against the dollar, while the Indonesian rupiah has lost 50 per cent against the dollar between 2011 and 2020.
Only 17 per cent of Europeans claimed they possessed digital assets in 2021, and only 7 per cent of those who did not own crypto indicated they planned to buy it at some point.
It remains to be seen whether the adoption trend will continue this year.
While bitcoin, the most popular cryptocurrency, reached an all-time high of over $68,000 in November, helping to lift the value of the cryptocurrency industry above $3 trillion, according to CoinGecko, it has spent much of 2022 trading in a narrow band of $34,000-$44,000.
(Source:www.economictimes.com)
The survey, which polled nearly 30,000 people in 20 countries between November 2021 and February 2022, found that 2021 was a record-breaking year for cryptocurrency adoption, with inflation in particular driving adoption in countries that have experienced currency devaluation, according to the report.
According to Gemini, Brazil and Indonesia lead the world in crypto adoption, with 41 per cent of people in both countries reporting crypto ownership, compared to 20 per cent in the US and 18 per cent in the UK.
Gemini found that 79% of people who reported owning crypto last year said they chose to purchase the digital assets for their long-term investment potential.
People who do not own cryptocurrency but live in countries where their currency has depreciated against the US dollar were more than five times as likely to say they planned to buy cryptocurrency as an inflation hedge.
Only 16 per cent of Americans and 15 per cent of Europeans thought that cryptocurrencies protect against inflation, compared to 64 per cent in Indonesia and India, for example.
In the last five years, the Indian rupee has lost 17.5 per cent against the dollar, while the Indonesian rupiah has lost 50 per cent against the dollar between 2011 and 2020.
Only 17 per cent of Europeans claimed they possessed digital assets in 2021, and only 7 per cent of those who did not own crypto indicated they planned to buy it at some point.
It remains to be seen whether the adoption trend will continue this year.
While bitcoin, the most popular cryptocurrency, reached an all-time high of over $68,000 in November, helping to lift the value of the cryptocurrency industry above $3 trillion, according to CoinGecko, it has spent much of 2022 trading in a narrow band of $34,000-$44,000.
(Source:www.economictimes.com)
