In the distance, a bell rings. And an announcement is heard:
“Last call for all passengers of the CRYPTO-1, destination, the Moon!”
This isn’t taken directly from Gemini’s ‘2022 State of Crypto Report’, but the sentiment is apt.
The report covers global findings conducted between November 23, 2021 and February 4, 2022, surveying nearly 30k participants across 20 countries.
Let’s dive in!
TL;DR:
- 2021 was crypto’s breakout year.
- The crypto gender gap may be narrowing.
- Inflation a primary driver for crypto adoption.
- Attitudes and barriers.
How the survey was conducted
Almost 30,000 adults, between the ages of 18 and 75, with yearly household incomes of US$14,000 or more, were surveyed across 20 countries on the topics of:
- Awareness of cryptocurrencies and exchanges.
- Motivations for owning and trading cryptocurrency.
- General attitudes toward cryptocurrency.
- Barriers to owning cryptocurrency.
2021 was crypto’s breakout year
We knew this already, of course.
But the report actually offers some data!
41% of crypto owners surveyed (globally) purchased crypto for the first time that year, whilst 41% of respondents said they were, at the very least, “crypto-curious”.
Here’s a geographical breakdown of first time buyers of 2021:
United States 44%
Latin America 46%
Asia Pacific 45%
Brazil 51%
Hong Kong 51%
India 54%
Europe 40%
The crypto gender gap may be narrowing
The term “crypto bro” isn’t a total myth.
However, the crypto gender gap may be tightening, as the report found that 47% of crypto curious individuals are women.
And women in developing nations are leading the way, with at least half of crypto owners in Indonesia (51%) and Nigeria (50%) being women, in contrast to developed countries and regions, where only a third of current crypto owners are women, including in the United States (32%), Europe (33%), and Australia (27%).
Inflation: a primary driver for crypto adoption
In countries where the national currency has experienced more than a 50% devaluation (against the US dollar) over the last 10 years, respondents were more than 5 times more likely to say they are planning to invest in crypto.
Most respondents from countries that have experienced long-term inflation, or even hyperinflation, say that crypto is the future of money, like Latin America (59%) and Africa (58%), and are planning on purchasing crypto in the coming year.
As inflation and diversification drive interest, almost half (46%) of respondents in Latin America and Africa say that certain crypto assets are a great hedge against inflation.
By contrast, in regions where the local currency has not experienced such dramatic long-term devaluation, respondents were less likely to say that cryptocurrencies guard against inflation, including the United States (16%) and Europe (15%).
But when it comes to diversifying a portfolio, the majority of global crypto owners said that owning cryptocurrency is a good way to diversify your assets, saying they buy and hold cryptocurrency for its long-term investment potential.
However, it’s worth noting that more than half of crypto owners in Asia Pacific (56%), Africa (53%) and the Middle East (56%) reported actively trading crypto, in order to make profits.
Attitudes and barriers
So, why isn’t the entire world in crypto right now?
Well, there are barriers. The biggest of which are potential government regulations and a lack of education.
Regulation is a concern globally, with many participants saying there is legal uncertainty around cryptocurrency and that the tax implications of owning cryptocurrency have kept them from investing.
There is clearly an overall lack of accessible information, with 40% of global respondents saying that more educational resources on cryptocurrency would help them get started, as opposed to 22% who would be more likely to invest after receiving recommendations from friends.
Banter’s take
From gender diversification to token diversification, as well as a high number of countries embracing crypto, we are clearly seeing the path to global adoption playing out before our eyes.
It’s fascinating how crypto adoption is particularly divided across regions and economic realities: how populations whose own FIAT currency has failed clearly see the need for an alternative, and implicitly understand its value.
And yet, crypto is not meant to be a dividing force (and yet, it’s funny how tribal it has become!). Slowly but surely, we believe that all countries, and populations, will be forced to take the path of least resistance: crypto is inevitable! We truly are participating in a historic and momentous shift towards a new kind of money.
