Forex in this article
Bitcoin is legal tender in El Salvador
41 percent of respondents bought cryptocurrencies for the first time in 2021
46 percent of respondents in Latin America consider cryptocurrencies to be inflation-proof
The crypto expansion continues to progress and is already well advanced in many regions. Cryptocurrencies such as Mooncoin or Etherum are becoming increasingly popular. Bitcoin is now legal tender in El Salvador. In a cross-national study, the crypto 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 involved 30,000 people from more than 20 countries. The findings were published in the 2022 Global State of Crypto report. Both crypto owners and people who have never purchased crypto currencies took part. Gemini comes to the conclusion that more and more people see cryptocurrencies as a suitable alternative to established means of payment or investments. Of crypto owners surveyed around the world, 41 percent said they bought cryptocurrencies for the first time in 2021. Of those who have never created a crypto custody account before, 41 percent said they are curious about cryptocurrencies. This percentage represented consumers who do not currently own cryptocurrency but are interested, or have indicated that they plan to purchase cryptocurrency within the next year.
Many of the respondents who have never invested in cryptocurrencies stated that they have concerns due to the lack or insufficient legal regulations in their country. In Europe, 36 percent of respondents said they did not invest.
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 crypto boom. In Latin America and Africa, 46 percent of respondents see cryptocurrencies as a suitable means of protecting themselves against inflation. In Europe and the USA, however, at 15 and 16 percent, significantly fewer people share this attitude. The vast majority of global crypto 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 depreciated 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 cryptocurrencies in the year ahead. These include countries such as South Africa (32 percent), India (40 percent) and Brazil (45 percent), where the national currency has lost around a third of its value against the dollar.
M. Wieser / Editor finanzen.net
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