a billion users by 2030?

The cryptocurrency industry has grown rapidly in recent years. According to a new report, the number of crypto users will exceed a billion by the end of the decade.

Same growth curve as the internet?

According to a recent Boston Consulting Group (BCG) report, 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 persist “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 in a similar phase to the internet in the mid-late 1990s, with the digital evolution of Web 3.0.

“If we use the number of cryptocurrency holders as a proxy for Web 3 users and compare this to the adoption rate of Internet users in the 1990s, the message is clear: a lot of growth is to be expected.”

As the industry democratizes, the perception of the associated risks decreases and encourages adoption, the report said. Currently, cryptocurrencies represent only 0.3% of the wealth of investors worldwide. It represents 1 to 2% of the investment fund and the potential for personal penetration is greater.

The adoption won’t be seamless either. Unsurprisingly, North America should lead the way. Investors there currently have an average of $18,000 worth of cryptocurrency each.

To date, 4% of the world’s population owns cryptocurrencies, or about 300 million people. As a reminder, in France, 8% of French people will have invested in crypto currencies by 2021, and 30% plan to invest in these assets in the coming years, according to a survey by the Association for the Development of Digital Assets (Adam) .

Adoption will partly depend on professional and institutional actors

Either way, the adoption wave must be propelled by institutional investors. Banks, government-related funds and other players will continue to show interest in the sector. “While individual investors remain the largest holders of cryptocurrencies, institutional interest is growing. »

These players doubled their exposure to cryptocurrencies between 2020 and 2021. The volume of spot transactions has increased sevenfold in the past two years.

Indeed, in a few years, 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. In fact, according to the report, investment funds 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. Indeed, the top 20 cryptocurrencies by market capitalization (Bitcoin and Ethereum top the list) now provide access to more than 10,000 applications (NFT, games, 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 equities. Yet individual investors have more cryptocurrencies than anyone else.

If the report is verified and that in less than 10 years the number of cryptocurrency users will triple and reach the billion mark, it is a safe bet that this adoption will not be without hurdles.

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