Cryptocurrencies will continue to democratize for years to come. According to a new study, one billion people will use digital currencies, such as Bitcoin, by 2030. Video games and NFTs are expected to drive industry adoption.
The Boston Consulting Group (BCG), an American strategic consulting firm, has just published a study dedicated to the adoption of cryptocurrencies. After analyzing a large amount of data, notably provided by banks or foreign exchange platforms, the company believes that the use of digital currencies will continue to spread.
“ We believe the crypto economy is here to stay “states the BCG in its report.
The study is based one billion users of cryptocurrencies by 2030. Coinbase, one of the largest cryptocurrency platforms, agrees. During a conference organized last May, Brian Armstrong, CEO of the company, in fact estimated that the adoption of cryptocurrencies will inevitably explode in the years to come. According to data collected by Statista, the user base has already done so increased by almost 190% between 2018 and 2020 “.
Currently, the cryptocurrency market has approx 200 million users in the world. In the United States, 21% of the population has already invested in cryptocurrencies, a study by NBC News reveals. Enthusiasm is less in France. According to a study by the Association for the Development of Digital Assets (Adan) and KPMG, 8% of French people own digital currencies, such as Bitcoin or Ether. Most importantly, 30% of people plan to make the leap. More generally, 60% of Europeans are confident in the future of cryptocurrencies, indicates a survey of the Bitflyer platform conducted in 2020.
The genesis of the adoption of cryptocurrency
In its report, BCG states that the adoption of digital currencies is still in its infancy. Furthermore, the holding rate of cryptocurrencies is still weak compared to traditional assets, like actions. Only 0.3% of the individuals’ capital is held in cryptocurrency, compared to 25% of the shares, the study finds. Experts point out that this rate of ” relatively low penetration ” suggests good room for growth. BCG compares the adoption of cryptocurrencies to the explosion of internet use in the 1990s.
This report comes when the entire crypto ecosystem is in the red. The fall of the Luna project, the failure of the Celsius platform and the 3AC investment fund deeply affected investors. In this uncertain context, the price of bitcoin has plummeted. The cryptocurrency queen is now trading around $ 23,000, a far cry from $ 69,000 in November 2021. However, the recent market crash won’t dent the adoption of digital assets, the study points out.
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Web3 and emerging countries
To explain the enthusiasm generated by the sector, the BCG highlights the multiplication of uses with the rise of the Web3, this decentralized version of the Internet. The development of non-fungible tokens (NFTs), cryptographic video games (PlayToEarn, MoveToEarn) and decentralized finance (DeFi) have spurred the interest of internet users. These trends have attracted new users who were initially little interested in finance or cryptocurrencies.
The study also highlights growing interest from emerging countries, whose banking and financial infrastructure is insufficient. In Nigeria, where inflation of the national currency is at record highs, 42% of the population owns cryptocurrencies, Statista reports. Over $ 400 million in annual transactions are recorded in the country.
Same story in countries like Argentina, Mexico, India, Thailand or even Vietnam. In those countries where bank rate is low, cryptocurrency provides access to services generally offered by banks. By going through cryptocurrencies, some populations can do it send funds overseas without having to incur exorbitant costs. It is also partly to prevent its inhabitants from depending on services such as MoneyGram and Western Union that El Salvador adopted Bitcoin as its second legal tender in 2021. 23% of the country’s GDP is based on funds received from the unknown.
For now, retail investors ” remain the largest holders of cryptocurrencies “. However, institutional investors, such as banks, investment funds or investment funds, are increasingly turning to these alternative assets. The BCG expects a plethora of pension funds to be launched as well, particularly by investing in ecosystem companies or betting on traded funds that follow the evolution of cryptocurrencies.
Key players in the financial sector, such as PayPal, Visa, Mastercard or even Stripe, should also help skyrocket the adoption of digital currencies. Since the end of 2020, PayPal has also made the exchange of cryptocurrencies possible. For their part, Visa and Mastercard offer cardholders to pay with their assets via their card. Finally, it will be remembered that Stripe, the payment processor for internet activities, makes life easier for merchants who want to accept cryptocurrencies.