Cryptocurrency adoption grew over 881% in the last year, according to research from Chainalysis.
Cryptocurrency is more widely used worldwide. It’s no longer just an experiment or a plaything for technology enthusiasts. Today, the blockchain industry has become increasingly professionalized, so it’s not surprising that many industries have started to adopt cryptocurrencies and other blockchain-based services.
The report suggests that the primary drivers of this increased adoption of cryptocurrency vary by region — in emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.
Another survey by Piplsay also found that cryptocurrency adoption is more common in younger generations, with almost half of millennials (49% of those between the ages of 18 and 34) having used at least one cryptocurrency and more than one-third of Gen Z individuals.
Global bitcoin payments continue to grow, as evidenced by the data from various payment processing companies such as BitPay and Blockchain.
Annual global Bitcoin payments have reached $2.7 billion, a 300% increase from 2016, according to the latest data, with over three million merchants accepting Bitcoin alone (of the more than 20 cryptocurrencies), and over 10% of people worldwide owning cryptocurrency.
Most of these transactions were made with stablecoins, according to research by McKinsey:
Over the last three years, the increase in the number of stablecoins in circulation has closely paralleled the increase in the number of cryptocurrencies exchanged on cryptocurrency exchanges.
A fintech era?
What’s the reason for this? Some say that the world has entered into a new “fintech” era. It’s a belief that financial technology is reshaping the world, revolutionizing everything from the way we save money, to the way we access financial services and even how we exchange goods and services.
Of course, one of the most important parts of this fintech revolution is cryptocurrency. In fact, a number of crypto companies have emerged in recent years, offering users new ways to exchange goods and services.
Global bitcoin payments continue to grow.
But where are these new bitcoin users coming from?
Government involvement and regulation is a hot topic in the bitcoin world. While many are eager to see government oversight as a legitimizing force, others worry that it will be the death sentence for cryptocurrency.
In Venezuela, for example, the government warned against investing in bitcoin and other virtual currencies back in December, specifically pointing out that it won’t stand behind any damage caused by potential losses.
And recently, the IMF warned El Salvador against its adoption of bitcoin as legal tender. In any case, the adoption of cryptocurrencies, especially in emerging countries, continues its course with different twists and turns in different countries.
P2P platforms are assisting in the growth of adoption in developing economies
P2P transaction volumes on peer-to-peer (P2P) platforms are very high in some developing market nations, including Kenya, Nigeria, Vietnam, and Venezuela, according to the report’s index, which is mostly due to high PPP per capita and internet-using populations in these countries.
It was discovered by specialists in these nations that many citizens utilize peer-to-peer cryptocurrency exchanges as their main gateway into cryptocurrency, frequently because they do not have access to centralized exchanges, according to the cryptocurrency research firm Chainalysis.
As a result, it should come as no surprise that areas with a large number of emerging markets account for a significant share of online traffic to P2P service websites.
Cryptocurrency adoption and transparency
Something remarkable can be observed when comparing the cryptocurrency adoption maps and the corruption perception index, whose similarities are remarkable.
There is a significant amount of the population that is looking to the future with digital currencies.
With this in mind, using digital currency to pay for goods and services in a global marketplace is something that is becoming increasingly common – especially with Bitcoin. The focus in the cryptocurrency world has always been on this particular virtual currency because of its market cap.
Even though Bitcoin has been the one that has drawn the most attention, the star of the show could end up being Ethereum ($ETH), or some stablecoin.
After all, currencies have always been pegged to a stable value to fully do their job as payment methods.
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
