A new survey from US cryptocurrency exchange Gemini shows that 2021 was a huge year for new entrants into the crypto market. Fiat debasement and high inflation are reasons for the flight of wealth into crypto.
The survey, carried out by Gemini, and reported in an article by Reuters, was conducted from November 2021 until February 2022. The survey asked nearly 30,000 people, from across 20 different countries about their crypto ownership.
Almost half of those surveyed, who had already bought cryptocurrencies, did so for the first time in 2021. Those surveyed came from the United States, Latin America, and Asia Pacific.
Of all the countries surveyed, Brazil and Indonesia were the nations that had most adopted cryptocurrencies, with 41% in both countries stating that they owned them. This is in contrast to the United States (20%) and the United Kingdom (18%).
Inflation came up as a possible reason for the difference, with only 16% of respondents from the United States, and 15% from Europe stating their belief that crypto was a hedge against inflation. Both Indonesia and India had much higher belief in this possibility, with 64% thinking crypto was a hedge.
Crypto adoption does appear to be far weaker in Europe than in developing countries. Only 17% of Europeans said they currently owned cryptocurrencies, and only 7% of those who didn’t own them said that they were thinking of buying them at some point.
On the other hand, those who live in countries where their national currency was devaluing against the dollar said that they were five times more likely to purchase cryptocurrencies as a hedge against inflation.
It might well be argued that the much faster currency devaluations in developing countries is a primary reason for citizens of those countries to seek relative safety in tried and tested cryptocurrencies such as Bitcoin and Ethereum.
It does seem a little puzzling that citizens from the US and from Europe are lagging behind in crypto adoption. With a lot more than 7% inflation in the US (if government figures are called into question) it is surprising that more are not investigating this option. Perhaps the influence that governments are able to wield by way of mainstream media has more of an effect on peoples’ choice.
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