Over 880%—that’s the growth rate that cryptocurrency adoption worldwide saw in 2021, as per Chainalysis’ recent report. This huge number might still come as a surprise for many people outside the crypto space, especially because digital coins like Bitcoin (BTC) didn’t really come to the world with a smooth start.
On the flip side, as many cryptocurrencies continue to emerge along with numerous peer-to-peer (P2P) and traditional marketplaces, lots of people began to explore what good cryptos have to offer. Nowadays, the group of crypto holders includes high-volume investors or traders from the finance and business space and folks from different industries and professions.
But with the increasing adoption of digital coins worldwide, who really are the cryptocurrency holders behind the ballooning rate?
The state of cryptocurrency adoption worldwide
According to TripleA, a financial services company based in Singapore, there are approximately over 300 million crypto users around the world. Aside from that, there are more than 18,000 businesses that are already accepting payments in cryptocurrencies.
TripleA’s crypto ownership report also revealed that the top countries with the most crypto users include India (100 million), the United States of America (27 million), Nigeria (13 million), Vietnam (5.9 million), and the United Kingdom (3.3 million).
Demographics of crypto users
TripleA’s report also showed that 79% of crypto owners are male, while 21% are female. About 58% are below 34 years old and 82% have a bachelor’s degree or higher. And approximately 36% have a yearly income of over 100,000 USD.
Chainalysis’ 2021 Global Crypto Adoption Index ranked 154 countries according to three metrics. The first one is the on-chain value based on purchasing power parity (PPP) per capita, which measures a country’s wealth per resident.
The next one is the on-chain retail value received, which is the measure of the activity of non-professional, individual crypto users based on the amount they’re transacting relative to the wealth of the average person. The last one is the P2P exchange trade volume weighted by PPP per capita and the number of internet users.
Among all the countries ranked in the report using the three metrics, these are the countries that made the top 20 overall index ranking.
This list includes a lot of nations, but let’s focus on the market of India. Overall, India ranked second among over a hundred countries with 42% of crypto transactions that were hefty and institutional-sized—often over 10 million USD. According to Chainalysis, the trend of using cryptos in paying large amounts of funds is proof that crypto adoption is on the rise in the region. This makes India among the global leaders for the adoption of digital coins.
The table shows the countries with the highest crypto-related activities overall, but how do these countries actually use cryptocurrencies?
How do people use cryptocurrencies?
Below are some of the most common ways people use digital currencies for their monetary transactions.
Remittances
Cryptocurrencies like Bitcoin became widely known for their decentralized nature, which means any government or geographical border can’t limit BTC. This makes them ideal for sending and receiving money in and out of the country. Since cryptos use digital wallets that can be accessed via smartphone or computer with an internet connection, transferring funds becomes even more manageable, faster, and cheaper.
Payments and purchases
Another use case of cryptos is bills payment and purchases. Since many companies and businesses have started to accept BTC and other cryptos for payment, making purchases in-store or online is now quicker and more convenient. On top of that, users won’t need to worry about banking hours to settle their bills since they can access their crypto 24/7, anywhere they like.
Savings
Cryptocurrencies like Tether (USDT), Bitcoin, and others are among the options for people looking to preserve their wealth. Some people, especially those living in a country with challenging economic conditions, began looking for ways to protect their hard-earned money from the drastic effects of inflation.
Trading
One of the most common routes people take for their crypto investments is trading. This is where they buy and sell crypto on P2P marketplaces like Paxful to earn a profit. Paxful, for example, offers over 350 payment options for users to choose from, making it easier for them to get started on trading. People earn money from trading by buying cryptos at lower prices and setting competitive margins on their offers.
The crypto adoption continues
Do you know someone who owns fractions of Bitcoin (BTC) or other cryptocurrencies? Or perhaps you own some. That’s because crypto adoption continues to grow and it will surely go on in the many years to come. Who knows? Sooner or later, we might find ourselves living a cashless life and using our cryptos in our daily lives instead.
