Inflation-hit Brazil and Indonesia are the leaders when it comes to global cryptocurrency adoption
According to a recent survey conducted by Gemini, a popular cryptocurrency exchange run by the Winklevoss twins, nearly 50% of cryptocurrency owners joined the market last year.
Gemini surveyed 20 countries in North America, Latin America and the Asia-Pacific region.
The pace of adoption now is astonishing, considering how much cryptocurrency prices have increased in 2021. In November, the total market cap exceeded $3 trillion, with bitcoin reaching an all-time high of nearly $69,000. Some altcoins, such as Solana, Terra and Dogecoin, have registered massive gains, attracting the attention of the investment community.
Unsurprisingly, the survey shows that countries with relatively high inflation lead in cryptocurrency adoption. The devaluation of some fiat currencies has prompted people to look for alternatives within the cryptocurrency sector.
Indonesia and Brazil are the top countries in terms of crypto adoption, with more than 41% of the residents of these countries already owning digital assets.
Sixty-four percent of Indonesians view cryptocurrencies as a hedge against inflation, despite their volatility.
Cryptocurrencies are less popular in countries with more stable fiat currencies. For example, 18% of respondents in the UK hold digital assets, with only 15% of Europeans believing that cryptocurrencies serve as a viable inflation hedge.Seven percent of European respondents who currently do not have any digital assets plan to buy them in the future.
As far as the US is concerned, about a fifth of the respondents have acquired cryptocurrencies.
While cryptocurrencies made significant progress in terms of entering the mainstream conscience last year, it remains to be seen whether this interest is sustainable. Despite the recent rally, most altcoins are far from all-time highs (except for outsiders like Terra).