The cryptocurrency industry has grown rapidly in recent years. According to a new report, the number of crypto users will exceed one billion by the end of the decade.
Same growth curve as the Internet?
According to a recent report by the Boston Consulting Group (BCG), the total number of users in the cryptocurrency space will reach 1 billion by 2030. Currently, the cryptocurrency industry is in the early stages of the global adoption process.
BCG experts are betting that the crypto industry will continue to exist “despite” the recent crypto crash. The report compares the Internet adoption curve with that of Web 3.
Wells Fargo released a report titled “Understanding Cryptocurrencies,” stating that the cryptocurrency industry was at a similar stage to the Internet in the mid-to-late 1990s, with the digital evolution of Web 3.0.
“Using the number of cryptocurrency holders as a proxy for Web 3 users, and comparing it to the adoption rate of Internet users in the 1990s, the message is clear: there is a lot of growth ahead.”
As the industry democratizes, the perception of associated risks decreases and drives adoption, according to the report. Currently, cryptocurrencies represent only 0.3% of the assets held by investors worldwide. It represents 1 to 2% of the investment fund and the potential for personal penetration is greater.
Adoption will not be without problems either. Not surprisingly, North America should lead the way. Investors who currently hold an average of $18,000 in cryptocurrency each.
To date, 4% of the world’s population owns cryptocurrencies, or about 300 million people. As a reminder, in France, 8% of the French have invested in cryptocurrencies in 2021, and 30% plan to invest in these assets in the coming years, according to a study by the Association for the Development of Digital Assets (Adam) ).
Adoption will partly depend on professional and institutional players
Either way, the wave of adoption should continue to be driven by institutional investors. Banks, state-related funds and other actors will continue to show interest in the sector. “Although individual investors remain the largest holders of cryptocurrencies, institutional interest is growing. »
These players have doubled their exposure to cryptocurrencies between 2020 and 2021. In terms of the volume of spot transactions, it has increased sevenfold over the past two years.
In fact, more and more international banks, investment funds, companies (Tesla, Microstrategy, etc.) and even countries (El Salvador, Central African Republic) have decided to bet on this ecosystem. According to the report, investment funds even doubled their exposure to cryptocurrencies to $70 billion between 2020 and 2021.
Moreover, the cryptocurrency ecosystem is growing very fast and attracting more individuals and investors based on their areas of interest. In fact, the top 20 cryptocurrencies by market capitalization (Bitcoin and Ethereum top the list) now provide access to more than 10,000 applications (NFT, gaming, decentralized finance (DeFi)), compared to 800 in 2017.
The report also clarified that a very small percentage (0.3%) of personal wealth is currently invested in cryptocurrencies. However, it is estimated that 25% of this wealth is invested in shares. Yet individual investors hold more cryptocurrencies than anyone else.
If the report is verified and the number of cryptocurrency users in less than 10 years triples and reaches the billion mark, it is a safe bet that this adoption will not be without obstacles.