Half of Crypto Holders First Purchased Last Year

Nearly half of people holding cryptocurrencies purchased them for the first time last year, says a Gemini survey.

Almost 30,000 people across 20 countries participated in the survey conducted by U.S. cryptocurrency exchange Gemini between Nov 2021 and Feb 2022. In addition to the United States, the survey also included countries in Latin America and Pacific Asia where inflation and currency devaluation has driven crypto adoption. 

According to the survey, Brazil and Indonesia led the world in recent crypto adoption, with 41% of those surveyed in both countries buying crypto for the first time last year. This high adoption rate contrasted notably with the United States and Europe, where initial crypto purchases only occurred for 20% and 18% of those surveyed, respectively.

Gemini says hedge against inflation

The survey from Gemini highlighted significant currency devaluation against the U.S. dollar as a major influencing factor for those considering purchasing crypto. Those living in such countries who do not currently own crypto were five times more likely to purchase crypto as a hedge against inflation.

In the past five years, the Indian rupee’s value has dropped 17.5% against the dollar, while in Indonesia the rupiah fell 50% against the dollar between 2011 and 2020. 

In both of these countries, some 64% believed cryptocurrencies hedge against inflation. 

Meanwhile, in the United States and Europe, these figures shrink to 16% and 15%, respectively. Last year, only 17% of Europeans said they owned digital assets, with a mere 7% of those not currently owning crypto reporting any intention to acquire some. 

The survey concluded that 79% perceived their crypto purchases as long-term investments.

Another recent poll from NBC News reported that one among five in the United States has invested in, traded, or used cryptocurrency. The largest demographic were men ages 18-49, half of whom reported dabbling in crypto. 

This figure dips to 42% of all people ages 19-34, and 40% of African Americans. At least 21% of those surveyed said they have at least once used or invested in crypto.

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