one billion users by 2030, adoption will accelerate

Cryptocurrencies will continue to democratize for years to come. According to a new study, by 2030, one billion people will be using digital currencies, such as Bitcoin. Video games and NFTs are expected to drive industry adoption.

The Boston Consulting Group (BCG), an American strategy consulting firm, has just published a study on: the adoption of cryptocurrencies. After analyzing a wealth of data, most notably provided by banks or exchange platforms, the company believes the use of digital currencies will continue to spread.

We believe the crypto economy is here to stay”says the BCG in its report.

The study is based on a billion users of cryptocurrencies by 2030. Coinbase, one of the largest crypto asset platforms, agrees. Indeed, at a conference hosted last May, Brian Armstrong, the company’s CEO, estimated that the adoption of cryptocurrencies will inevitably explode in the coming years. According to data collected by Statista, the user base has already increased by almost 190% between 2018 and 2020”.

Currently, the crypto market has about 200 million users in the world. In the United States, 21% of the population has already invested in cryptocurrencies, according to a survey by NBC News. In France, the enthusiasm is less. According to a study by the Association for the Development of Digital Assets (Adan) and KPMG, 8% of the French own digital currenciessuch as Bitcoin or Ether. Above all, 30% of people are planning to take the plunge. More broadly, 60% of Europeans are confident in the future of cryptocurrencies, according to a 2020 study by the Bitflyer platform.

The Genesis of Cryptocurrency Adoption

In its report, BCG claims that the adoption of digital currencies is still in its infancy. In addition, the holding rate of cryptocurrencies is: still weak compared to traditional assetssuch as stocks. Only 0.3% of individuals’ capital is held in cryptocurrency, compared to 25% in equities, the study notes. Experts point out that this percentage of “ relatively low penetration » suggests a good margin for growth. BCG likens the adoption of crypto assets to the explosion of internet use in the 1990s.

© BCG

This report comes because the entire crypto ecosystem is in the red. The fall of the Luna project, the bankruptcy of the Celsius platform and the 3AC investment fund have deeply affected investors. In this uncertain context bitcoin price crashed. The queen of cryptocurrencies is now trading at around $23,000, a far cry from $69,000 in November 2021. Nevertheless, the recent market crash will not dent the adoption of digital assets, the study said.

Also read: No, cryptocurrencies are not massively used by criminals

Web3 and emerging countries

To explain the enthusiasm of the sector, the BCG emphasizes the multiplication of the use by the rise of Web3, this decentralized version of the Internet. The development of non-fungible tokens (NFT), crypto video games (PlayToEarn, MoveToEarn) and decentralized finance (DeFi) have increased the interest of internet users. These trends have allowed to attract new users, initially not very interested in finance or cryptocurrencies.

The study also highlights: growing interest from emerging countries, whose banking and financial infrastructure is inadequate. In Nigeria, where national currency inflation is hitting record highs, 42% of the population owns cryptocurrencies, Statista reports. More than $400 million in annual transactions are recorded in the country.

Same story in countries like Argentina, Mexico, India, Thailand or even Vietnam. In those countries where bank rate low, cryptocurrency provides access to services typically provided by banks. By going cryptocurrencies, some populations can: transfer money abroad without paying exorbitant fees. C’est d’ailleurs en partie pour éviter à ses habitants de dépendre de services comme MoneyGram et Western Union que le Salvador a adopté le Bitcoin comme second monnaie légale en 2021. 23% du PIB du pays repose en effet sur les fonds reçus depuis Abroad.

For now, private investors remain the largest holders of cryptocurrencies ». However, institutional investors, such as banks, investment or investment funds, are increasingly turning to these alternative assets. The BCG predicts that a plethora of pension funds will also be launched, particularly by investing in ecosystem companies or betting on traded funds that track the evolution of cryptocurrencies.

Major players in the financial sector, such as: PayPal, Visa, Mastercard or even Stripe, are also expected to help digital currency adoption skyrocket. Since the end of 2020, PayPal also makes it possible to exchange cryptocurrencies. For their part, Visa and Mastercard offer holders to pay with their assets through their card. Finally, we will not forget that Stripe, the payment processor for internet businesses, makes life easier for merchants who want to accept cryptocurrencies.

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