{"id":400479,"date":"2022-01-28T17:33:00","date_gmt":"2022-01-28T14:33:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/staying-cool-is-crypto-snowballing-to-1-billion-users-this-year\/"},"modified":"2022-01-28T17:33:00","modified_gmt":"2022-01-28T14:33:00","slug":"staying-cool-is-crypto-snowballing-to-1-billion-users-this-year","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/staying-cool-is-crypto-snowballing-to-1-billion-users-this-year\/","title":{"rendered":"# Staying cool: Is crypto snowballing to 1 billion users this year?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a30e6b991eb5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a30e6b991eb5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/staying-cool-is-crypto-snowballing-to-1-billion-users-this-year\/#A_generation_gap\" >A generation gap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/staying-cool-is-crypto-snowballing-to-1-billion-users-this-year\/#Following_the_path_of_internet_adoption\" >Following the path of internet adoption?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Staying cool: Is crypto snowballing to 1 billion users this year? <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvZGYwMzBhY2EtMTY2MC00ZDNmLWI1MDMtMDg5NmIxYWU2ZjEyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>Crypto.com raised a few eyebrows this past week when it announced cryptocurrency users worldwide could reach 1 billion by the end of 2022.\u00a0<\/p>\n<p>The timing was curious, given that Bitcoin (BTC) and many other cryptos are entwined in one of the largest drawdowns in their (albeit short) history and with the prospect of United States Federal Reserve interest-rate tightening edging ever nearer.<\/p>\n<p>But the cryptocurrency exchange, which in November gave its name to the arena where the Los Angeles Lakers basketball team plays in a 20-year deal, was obviously taking the long view.\u00a0<\/p>\n<p>Also, its prediction was contingent on two things h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening: one in the \u201cdeveloped\u201d world, the other in less-mature national economies. It also involved some statistical extrapolation. To wit, the main <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/assets.ctfassets.net\/hfgyig42jimx\/5i8TeN1QYJDjn82pSuZB5S\/85c7c9393f3ee67e456ec780f9bf11e3\/Cryptodotcom_Crypto_Market_Sizing_Jan2022.pdf\">arguments<\/a> for a great crypto leap forward:<\/p>\n<ul>\n<li>Crypto.com expects the world\u2019s developed nations to devise \u201cclear legal and taxations frameworks.\u201d<\/li>\n<\/ul>\n<ul>\n<li>\u201cMore nations facing a highly inflationary economy and depreciating currency may adopt cryptocurrency as legal tender, following the example of El Salvador.\u201d<\/li>\n<\/ul>\n<p>As for the extrapolation, the firm reported that \u201cin 2021, the number of global crypto owners almost <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>led, from 106 million in January to 295 million in December. If we extrapolate a similar rate of increase in 2022, we are on track to reach 1 billion crypto users by the end of 2022.\u201d<\/p>\n<p>But is 1 billion crypto users by year\u2019s end really doable \u2014 particularly in light of the 50% market price <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2022\/01\/24\/what-investors-should-know-as-bitcoin-drops-50percent-from-its-all-time-high.html\">retrenchment<\/a> from early November\u2019s high mark?\u00a0<\/p>\n<p>Maybe there are good secular reasons, including demographics, to believe that adoption will continue to grow exponentially. But will other nations really follow El Salvador\u2019s example, given that the nation\u2019s BTC investment is currently underwater, and if so, who might be next?\u00a0<\/p>\n<p>Finally, what, if anything, could still derail the steady, upward arc of global crypto adoption, which now stands at 3.83% of the world\u2019s population, according to Crypto.com?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_generation_gap\"><\/span>A generation gap<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nigel Green, CEO of the deVere Group, sees nothing far-fetched about this projection. \u201cThere is every reason to believe this could be true,\u201d he told Cointelegraph when asked about the exchange firm\u2019s prediction, in good part \u201cdue to a snowball effect of mass adoption and increasing understanding of and interest in digital currencies.\u201d\u00a0<\/p>\n<blockquote><p>\u201cIt comes down to demographics. Younger people are more likely to embrace crypto than older generations, and we\u2019re coming into the Great Transfer of Wealth. This is where Baby Boomers will transfer an estimated $40 trillion\u2013$68 trillion to Millennials.\u201d<\/p><\/blockquote>\n<p>Others confirm this generational reality. \u201cLet\u2019s face the fact,\u201d Wharton School professor Jeremy Siegel <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SquawkCNBC\/status\/1476910512671711234?s=20\">said<\/a> recently, \u201cBitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold. Digital coins are the new gold for the Millennials.\u201d<\/p>\n<p>Yu Xiong, professor of business analytics and director of the Center for Innovation and Commercialization at the University of Surrey, told Cointelegraph that the number of crypto investors globally \u201cis still very low\u201d in the overall scheme of things.\u00a0<\/p>\n<p>Crypto.com\u2019s methodology for counting crypto users is more rigorous than most, but 300 million current users could still be on the high side, and \u201cthere is huge potential for more people to participate and push the value high. I saw many college freshman students buying cryptocurrencies\u201d in the past year, Xiong said.\u00a0<\/p>\n<p>Xiong believes that global turmoil, both political and economic, should bolster adoption. \u201cWe are facing a more and more uncertain world, such as what\u2019s happening in Russia and Ukraine, and in Taiwan.\u201d People see surging inflation in Turkey and other countries. In such circumstances, \u201cit\u2019s unlikely that the value of Bitcoin would not increase.\u201d<\/p>\n<p>But is it really a sure thing? This past week, after all, the International Monetary Fund urged El Salvador to walk back its decision to make Bitcoin legal tender, citing concerns about \u201cfinancial stability, financial integrity and consumer protection.\u201d Elsewhere, Harvard University\u2019s Kennedy School professor Jeffrey Frankel <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theguardian.com\/business\/2021\/sep\/24\/el-salvador-adoption-of-bitcoin-as-legal-tender-is-pure-folly\">declared<\/a> that \u201cEl Salvador\u2019s adoption of bitcoin as legal tender is pure folly\u201d \u2014 in good part because of BTC\u2019s price volatility.\u00a0<\/p>\n<p>Still, a Jan. 6, 2022, research <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fidelitydigitalassets.com\/articles\/2021-trends-impact\">report<\/a> from Fidelity Digital Assets (FDA) drew a different conclusion from the El Salvador experiment, with FDA declaring that it \u201cwouldn\u2019t be surprised to see other sovereign nation states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition.\u201d\u00a0<\/p>\n<p>In that report, authors Chris Kuiper and Jack Neureuter outlined a \u201cvery high stakes <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> theory at play\u201d where countries seem to realize that if they secure some Bitcoin today, they \u201cwill be better off competitively than their peers.\u201d Kuiper, a research director at FDA, further explained this notion to Cointelegraph:<\/p>\n<blockquote><p>\u201cThe first participant or country to make a purchase of Bitcoin is in many ways taking the most risk, while the risk hypothetically lowers as other countries choose to accumulate some Bitcoin. On the other hand, every purchase by an additional country increases the potential risk to other countries that have not yet purchased.\u201d\u00a0<\/p><\/blockquote>\n<p>In other words, it is possible that at some point, the riskier decision could be <em>not<\/em> to own Bitcoin rather than to purchase the cryptocurrency, said Kuiper.<\/p>\n<p>Kuiper declined to specify which nations might follow El Salvador, but along these lines, Green said countries, where there is \u201cunpredictable inflation and an inefficient, outdated and costly financial system, and where GDP is reliant upon remittances from overseas,\u201d may seize upon a Bitcoin alternative. He mentioned Panama, Paraguay, Guatemala and Honduras as prospects.<\/p>\n<p>Xiong, too, viewed the world\u2019s financially \u201cunstable\u201d countries most likely to follow the Central American nation\u2019s lead, provided they have good internet access, including Turkey, Afghanistan and \u201cmany countries in Africa.\u201d He singled out the \u201chundreds of millions of people in some under-developed countries that do not have bank accounts\u201d as would-be adopters.\u00a0<\/p>\n<p>Kuiper added, \u201cAdoption may be more appealing for countries that have large remittance markets and can, therefore, save on fees, that are looking for additional financing options, or that do not have their own sovereign currency, making digital assets adoption easier.\u201d\u00a0<\/p>\n<p>Xiong didn\u2019t believe that 1 billion crypto users by the end of 2022 is achievable, however. \u201cI think it\u2019s likely we may double the users by the end of 2022. I would say 700 million\u2013800 million at least.\u201d The sector \u201cstill needs some good applications that attract high daily active users,\u201d he added.\u00a0<\/p>\n<p>Keith Carter, an associate professor in the department of information systems and analytics at the National University of Singapore, agreed that more blockchain use cases would be required before the billion threshold is surpassed, particularly \u201cuse cases beneficial to society with strong business fundamentals or with entertaining engagements,\u201d but obstacles remain, he told Cointelegraph:<\/p>\n<blockquote><p>\u201cRecent hacking incidents and errors in smart contracts show that digital-asset ecosystem companies need to work to improve coding standards through training, research and collaboration.\u201d<\/p><\/blockquote>\n<p>Other issues that could impede global adoption include \u201cenergy usage, unequal internet accessibility, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> accessibility and transaction costs,\u201d Carter added.<\/p>\n<p>DeVere\u2019s Green remains unfazed when asked about recent price volatility. It basically comes with the territory. \u201cDigital is the future of finance, and retail adopters know this. Institutional investors know this. Major multinational corporations and Wall Street giants know this.\u201d Recent price drawdowns should be seen as a buying opportunity, particularly with the prospect of \u201cred-hot inflation\u201d looming, Green told Cointelegraph:<\/p>\n<blockquote><p>\u201cThe fundamentals haven\u2019t changed, and the dips are being regarded as discounts.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Following_the_path_of_internet_adoption\"><\/span>Following the path of internet adoption?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Carter was keen to set some context with regard to the adoption question. Crypto assets are a subset of digital assets, and digital assets are already in the hands of more than 1 billion people with credit cards, online banking, digital wallets and newly created central bank digital currencies, he told Cointelegraph. \u201cThe market dictates the success of a business model. If a compelling market need arises only satisfied by a particular digital asset, we may see higher adoption of that asset.\u201d\u00a0<\/p>\n<p>Meanwhile, Kuiper compared crypto adoption with internet adoption. \u201cThere are currently estimated 100 million digital asset users right now\u201d \u2014 again, estimates vary, and no one really knows the true number \u2014 \u201croughly the equivalent of the number of internet users in the late 1990s,\u201d he said. \u201cWhile only one-third of Americans had internet access in 1999, this exploded to nearly 75% by 2010. We would not be surprised to see a similar acceleration in adoption of digital assets over the next few years.\u201d<\/p>\n<p>The prospects appear good. Kuiper concluded, \u201cWe think digital assets have very powerful network effects embedded into their design, and history shows that most people overestimate the short-term or early growth of such networks but vastly underestimate the longer-term growth.\u201d\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/staying-cool-is-crypto-snowballing-to-1-billion-users-this-year\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Staying cool: Is crypto snowballing to 1 billion users this year? &#8221; Crypto.com raised a few eyebrows this past week when it announced cryptocurrency users worldwide could reach 1 billion by the end of 2022.\u00a0 The timing was curious, given that Bitcoin (BTC) and many other cryptos are entwined in one of the largest&#8230;<\/p>\n","protected":false},"author":1,"featured_media":400480,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvZGYwMzBhY2EtMTY2MC00ZDNmLWI1MDMtMDg5NmIxYWU2ZjEyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74863,74983,74889,74355,117,90059,73711,55229],"class_list":["post-400479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrencies","tag-decentralization","tag-payments","tag-adoption","tag-business","tag-el-salvador","tag-investments","tag-law"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=400479"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/400480"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=400479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=400479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=400479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}