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The new survey found varying degrees of disparity concerning crypto ownership in 2021 among respondents in developed and developing nations .
According to a new survey on crypto ownership across three continents, nearly half of crypto buyers became first-time owners in 2021. US crypto exchange Gemini discovered that about 30,000 people across 20 countries first bought digital assets last year. Gemini’s survey covered the US (44%), Latin America (46%), and the Asia Pacific region (45%).
Titled 2022 Global State of Crypto report, the survey was carried out between November 2021 and February 2022. It clearly demonstrated that last year was a landmark year for digital currencies, as the space continues to make inroads into mainstream finance. Gemini chief operating officer Noah Perlman commented on the crypto adoption trend saying:
“Crypto adoption reached a true tipping point last year, becoming an established economic driver and a valued investment across the globe.”
Additionally, Perlman also suggested more of the same throughout 2022, saying:
“We expect to see the influx of crypto investors continue into this year…”
Further Details from Gemini’s 2021 Crypto Ownership
Gemini’s report also identified inflation as a primary cause of increased crypto adoption, particularly in nations experiencing currency devaluation. For instance, 64% of people in countries like Indonesia and India were likely to purchase crypto as a hedge against inflation. In addition, South Africa (32%), Mexico (32%), and Brazil (45%) were all more than five times as likely to purchase crypto soon. Meanwhile, only 16% of their counterparts in the US and 15% in the UK reckon crypto a viable inflation hedge.
Another driver of increased crypto adoption was growing venture capital (VC) investment, with surging adoption rates in Singapore (30%) and Israel (28%). In addition, findings also concluded that the crypto gender gap might narrow further between now and next year. Additionally, according to the 2022 Global State of Crypto report, global education is still the biggest barrier to crypto investing.
Other key findings revealed that crypto regulation was still of utmost worldwide concern, with recurrent legal uncertainties and tax complexities.
The report states that Brazil and Indonesia are at the forefront in terms of global crypto adoption. More than two in five respondents (41%) surveyed reported owning digital currencies in each country. This figure trumped that of advanced nations like the US and the UK where only 20% reported crypto ownership. Furthermore, other countries featured on crypto ownership included Europe (17%), and Australia (18%).
The Gemini report also discovered that 79% of those who said they owned crypto last year were in it for the long haul. This group chose to buy the digital currencies because of their long-term investment potential.
The overall value of the global crypto market hit $3 trillion last November after a sustained rally across the board. Furthermore, Bitcoin (BTC) hit a record high of $68K during that same period. However, at the turn of 2022, the leading crypto fell into a downward spiral, largely trading under $44,000. However, BTC saw a price surge last week that took the price up to $48,000 before retracing slightly. As of press time, the largest crypto by market cap is trading at just over $46K.