Bitcoin is legal tender in El Salvador
41 percent of respondents bought cryptocurrency for the first time in 2021
46% of Latin American respondents consider cryptocurrency to be anti-inflationary
The expansion of cryptography continues to progress and is already well advanced in many areas. Cryptocurrencies such as Mooncoin or Etherum are becoming increasingly popular. Bitcoin is now legal tender in El Salvador. In a multinational study, cryptocurrency exchange Gemini has now examined how well cryptocurrencies have established themselves in different countries.
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Gemini Study Shows Global Acceptance of Cryptocurrencies
The 2021 Gemini Study included 30,000 people from more than 20 countries. The findings were published in the 2022 Global State of Crypto Report. Both cryptocurrency owners and people who have never purchased cryptocurrencies participated. Gemini has come to the conclusion that more and more people see cryptocurrencies as a suitable alternative to established means of payment or investments. Among the surveyed cryptocurrency owners around the world, 41 percent said they first purchased cryptocurrency in 2021. Among those who had never set up a crypto custody account before, 41 percent said they were interested in cryptocurrency. This percentage represents consumers who do not currently own cryptocurrency but are interested in, or have indicated that they plan to purchase cryptocurrency within the next year.
Many respondents who have never invested in cryptocurrency mentioned that they have concerns due to the lack or insufficiency of legal regulations in their country. In Europe, 36 percent of respondents said they had not invested.
Cryptocurrencies are seen as a store of value and a hedge against inflation
According to the study, rising global inflation is an important reason for the cryptocurrency boom. In Latin America and Africa, 46 percent of respondents see cryptocurrencies as an appropriate way to protect themselves from inflation. However, in Europe and the United States, at 15 and 16 percent, far fewer people share this position. The vast majority of global cryptocurrency owners (79 percent) said they buy and hold cryptocurrencies for their potential as a long-term store of value.
However, the popularity of cryptocurrencies in a country also depends on how the respective national currency compares to the US dollar. In countries where the national currency has fallen by 50 percent or more against the US dollar over the past decade, respondents were five times more likely to say they plan to buy cryptocurrency in the next year. These include countries such as South Africa (32 percent), India (40 percent) and Brazil (45 percent), where the national currency has lost about a third of its value against the dollar.
M. Phaser / editor finanzen.net
Image sources: Wit Olszewski / Shutterstock.com
