2021 was a crucial year for the cryptocurrency market, which experienced very significant growth around the world. To the point that, according to a survey, just under half of those who own this type of digital asset globally made their first purchase last year.
The work corresponds to Gemini, a centralized platform for buying and selling “crypto”. said company surveyed to almost 30 thousand people from 20 countries, between November 2021 and February 2022, and obtained very interesting conclusions; for example, that the main markets that saw a marked growth in the number of people who invested for the first time in cryptocurrencies were Latin America, Asia Pacific and the United States.
Specifically, the report indicates that 41% of existing cryptocurrency holders in the world made their first investment in 2021. But in some countries that percentage is even higher than the global average; in India, 54% of those who use crypto assets took their first steps in the last year, while in Brazil 51% did.
The Gemini survey also mentions that the main motivation for entering the world of digital assets was inflation. According to the data collected, the interest in cryptocurrencies among people living in countries with more than 50% devaluation against the dollar was “more than five times higher” compared to those living in countries with more stable economies.
Cryptocurrencies grow in adoption and as a long-term investment
It is also a reality that the 2021 bull market has helped many people to jump into cryptocurrencies. Let’s not forget that, after the collapse in its price due to the ban in China, Bitcoin reached its historical maximum value last November, when it came to be worth just over 69 thousand dollars.
And while it is true that at the beginning of this year its price suffered a sharp drop again, in recent weeks it has recovered to trade around $45,000.
Cryptocurrencies continue to be a source of speculation, especially due to the volatility that some of them present. However, the Gemini report indicates that 79% of those who reported having bought digital assets in the last year did so as a potential long-term investment. It is worth saying that this is not something new in the world of crypto assets, since holding on to them (hold or hodle) despite the fall in prices —with the hope that it will soon reverse its price— has become one of its maxims.
Europe still looks at them suspiciously
While it is true that cryptocurrencies also have their place in Europe, their adoption is not at the same levels as other parts of the world. According to Gemini, 17% of Europeans who participated in the survey reported that they own crypto assets; this puts the region in line with other developer markets, such as Australia (18%) and the United States (20%), but below the global average (23%). What’s more, only 7% of those who do not have them would be interested in acquiring them.
The main concern in Europe about the use of cryptocurrencies revolves around regulatory aspects. 36% of those who have not yet bought these assets assure that it is due to the lack of legal certainty about them.
We must also mention that in the region there is a very strong criticism towards the energy consumption of mining, especially those that use the protocol proof-of-work, such as Bitcoin and Ethereum; Sweden even called for a ban on this mining system. On the other hand, in recent days the European Parliament approved that all transactions with cryptocurrencies must include information from the parties involved; for this you must implement KYC identification technology (Know Your Customer), which has generated a very negative reaction in the industry.