Cryptocurrency Adoption Is on the Rise
Despite its risks and volatility, cryptocurrency continues to be a an intriguing asset class among investors, globally. Its adoption, use and spread of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) is validated by the rise seen in the number of active addresses for these currencies. Now, while mass adoption of cryptocurrency remains distant as of now, efforts made towards educating the masses, easing security concerns and integrating cryptocurrency payments systems are already in place – and are leading to wider knowledge and ownership of this new paperless asset class.
Perspectives on Cryptocurrency Adoption
From a geographical perspective, the United States, China, Japan and South Korea are the leading markets in terms of trading volumes for cryptocurrencies such as Bitcoin. The macro picture suggests that Switzerland, Japan, the UK, Netherlands, and Denmark count among the most crypto-friendly nations.
Taking a closer look, what is more intriguing is the adoption rate of cryptocurrencies among consumers. On a social level, many non-profits and charitable organizations have now started accepting cryptocurrencies as a way to tap into investors who want to do more good with their money. This helps crypto as an asset class become channelled towards to the ultimate use of the consumers, while partaking in the greater good.
Fiat Currency Weakness Builds a Strong Case for Cryptocurrency Adoption
The economic perspective shed even brighter light on the use of cryptocurrency for the benefit of consumers. Cryptocurrency is now also serving as a “rescue angel” for the inhabitants of countries with economic issues such as massive currency depreciation or hyperinflation. In countries like Zimbabwe and Venezuela, citizens are buying crypto simply to protect themselves from poverty if their fiat currency takes a nosedive.
In Turkey, rising inflation (15.85% as of July 2018), and a depreciating Lira are now leading more and more consumers towards cryptocurrency. The Turkish New Lira has halved in value over then past year alone, eroding household savings and hurting export revenues of the economy. This is what is leading an increasingly number of people in Turkey to hold their funds in crypto as opposed to fiat currency.
18% of Turkish Consumers Now Own Cryptocurrency vs 8% in the US
As a consequence, a good 18% of consumers in Turkey now own cryptocurrency, the highest among all major developed markets and Eurasian economies. An ING International Survey on cryptocurrency conducted in June 2018 (see chart above) suggests that Turkey tops the list of countries where a survey of the cryptocurrency adoption rate was conducted.
In comparison, the US, which is home to the largest number of blockchain projects, cryptocurrency trading volumes, crypto funds etc., falls behind Turkey by a good 10% when it comes to cryptocurrency adoption among consumers. Just 8% of consumers responded with a Yes when asked whether they own cryptocurrency. Romania, Poland, and Spain also fall well behind Turkey in terms of consumer-level cryptocurrency adoption.