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Bitcoin’s role as inflation hedge grows | The HIVE Newsletter

Commentaries & Views

A hugely important global crypto survey came out recently.

Global exchange Gemini has released its 2022 Global State of Crypto Report.

Gemini surveyed 29,293 adults across 20 countries. Ages ranged from 18-75, and it was restricted to those who make more than $14,000 per year.

This may be the best survey yet for understanding global crypto adoption among retail investors.

The results are stunning. They show that globally, more than 41% of all crypto investors started in 2021. That means the total number of investors increased by roughly 70% in 2021 alone.

Key Excerpts:

  1. More than half of crypto owners in Brazil (51%), Hong Kong (51%), and India (54%) got started in 2021
  2. Among high-income respondents in developed nations crypto ownership trended higher, with 40% or more in the UK, Germany, and France reporting owning crypto.
  3. Regulation is a concern globally. Among non-owners, 39% in Asia Pacific, 37% in Latin America, and 36% in Europe say there is legal uncertainty around cryptocurrency.

Another big finding is that inflation appears to be a key driver of new adoption.

Inflation Driving Adoption

One of the reasons I like Gemini's survey is that they asked compelling questions. For example, the data on inflation is fascinating.

The report highlights the fact that countries which have recently experienced hyperinflation tend to agree with the statement "Crypto is the future of money".

Clearly, those who have firsthand experience with high inflation are much more likely to adopt crypto.

More analysis from the report:

Respondents in countries that have experienced 50% or more devaluation of their currency against the USD over the last 10 years were more than 5 times as likely to say they plan to purchase crypto in the coming year than those in countries that have experienced less than 50% currency devaluation, including South Africa (32%), Mexico (32%), India (40%), and Brazil (45%).

In Brazil, where the local currency has been devalued by more than 200% against the USD, 41% of respondents own crypto.

In the US, two in five (40%) crypto owners see crypto as a hedge against inflation.

This matches what I'm seeing: Generally, the higher the inflation rate in a country is, the higher the crypto adoption rate is. If inflation continues to be problematic around the world, it seems likely this trend will continue to grow.

There are all sorts of other interesting nuggets to be found in this report. For example, in Nigeria, Israel, and Indonesia, more than half of crypto investors are women.

In the U.S. and Europe, the gender gap is narrowing, but still lopsided with 32% and 33% female crypto ownership, respectively.

It's an excellent report which makes me more optimistic on the future of crypto. Read the whole thing on (PDF).

HIVE In The News

  1. Frank Holmes' Talks Crypto with Kitco
  2. Frank on the Bitcoin Italia Podcast
  3. Frank on Fox Business TV
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