According to the latest report published by New York-based exchange Gemini, crypto adoption gained unprecedented traction in 2021. Titled the “Global State of Crypto Report,” the study presents a healthy panorama for the future of digital asset adoption worldwide.
Report Showcases Global Crypto Interest Growth
Gemini researchers interviewed 30,000 individuals across 20 nations and found out that nearly half of all crypto holders in the US, Asia-Pacific and Latin America first purchased digital assets in 2021.
Most new crypto owners cited the asset class’s potential as a long-term investment as their primary attraction to the asset class. These respondents agreed with the notion that crypto is an excellent way to diversify their portfolios amid mounting FUD in traditional markets.
The survey conducted between November 2021 and February of this year highlighted that Asia-Pacific countries such as Indonesia, India, and Singapore are taking to cryptocurrency at a greater rate than Western states.
Overall, Gemini’s latest global research report highlights an increasing appetite for crypto exposure, especially in potentially massive markets such as Brazil and India.
Crypto’s Growing Reputation as an Inflation Hedge
The Gemini report shows that one of the main drivers of crypto adoption is rising global inflation. According to the findings, residents of countries that face high currency devaluation are five times more likely to invest in the digital asset class.
The highest crypto adoption rates were recorded in Indonesia and India, whose sovereign currencies have depreciated significantly against the US dollar in recent years. A whopping 64% of Indonesian and Indian respondents agreed that crypto-assets such as bitcoin serve as an ideal hedge against inflation.
The survey shows that the crypto-investor share amid nations experiencing currency devaluation has risen steeply over the past year. A growing number of people in inflation-impacted regions such as Africa and Latin America now hail crypto as “the future of money” in which they can pack their savings.
In sharp contrast, most investors surveyed from Western regions did not view cryptocurrencies as an inflation hedge. Only about 15% of respondents in Europe and the US see crypto as a protection vehicle against future hyper-inflation.
Impediments to Faster Crypto Adoption
Despite 2021 being a record year for crypto ownership, there are still a few bottlenecks slowing down adoption momentum among the general population.
The Gemini research highlights ongoing regulatory uncertainty in several regions as a key issue discouraging investors from jumping on the crypto train. Another major impediment to adoption is the lack of education about the relatively new asset class.
Indonesia is leading the charge toward the broad adoption of virtual assets like bitcoin and Ethereum. Feroze Medora, the director of trading at Gemini Asia-Pacific, explained how the country has managed to sidestep most major bottlenecks and enjoy the highest rate of crypto investment globally:
“The prevalence of crypto mobile apps has made crypto even more accessible to everyone – regardless of gender. Additionally, there is no lack of online crypto educational materials”,
Medora told the Jakarta Globe.
Source: https://crypto.news/gemini-report-2021-was-a-breakout-year-for-cryptocurrency-adoption/