Nearly Half of Cryptocurrency Owners Purchased Digital Assets for the First Time in 2021: Study

Nearly half of all cryptocurrency holders in the United States, Latin America and Asia Pacific purchased digital assets for the first time in 2021, according to a new survey by US crypto exchange Gemini.

The survey of nearly 30,000 people in 20 countries, conducted between November 2021 and February 2022, showed that 2021 was a successful year for cryptocurrencies, with inflation in particular leading to adoption in countries that experienced a decline in value. currency, according to the report.

Gemini found that Brazil and Indonesia lead the world in digital currency adoption, with 41% of people surveyed in those countries reporting owning cryptocurrency, compared to 20% in the US and 18% in the UK.

Gemini discovered that 79% of people who reported owning cryptocurrency last year said they chose to buy digital assets for their potential long-term investment.

People who do not currently own cryptocurrency and live in countries that have experienced devaluation against the United States

The dollar was more than five times more likely to say that they plan to buy cryptocurrencies as a hedge against inflation.

Only 16% of respondents in the US and 15% in Europe agreed that cryptocurrencies are a hedge against inflation, compared to 64% in Indonesia and India, for example.

The Indian rupee has depreciated 17.5% against the dollar in the past five years, while the Indonesian rupiah has depreciated by 50% against the dollar between 2011 and 2020.

Only 17% of Europeans reported that they owned digital assets in 2021, and only 7% of those who do not currently own digital currencies said they intend to purchase digital assets at some point.

It remains to be seen if adoption momentum can keep up this year.

While the most popular cryptocurrency, Bitcoin, reached an all-time high of more than $68,000 in November, helping drive the value of the cryptocurrency market to $3 trillion, according to CoinGecko, it traded in the narrow range of $34,000 to $44,000 for most of 2022 so far.

(Reporting by Hannah Lang in Washington; Editing by Leslie Adler)

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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