The latest findings by crypto exchange Gemini have revealed that 41% of crypto investors acquired cryptocurrencies for the first time last year, suggesting significant crypto adoption from the year before.
Upon surveying nearly 30,000 respondents in 20 countries between November 2021 and February 2022, the study found that nearly half of the cryptocurrency owners in the US, Latin America, and the Asia Pacific made their first investment in the space in 2021.
Cryptocurrency investors in Brazil, Hong Kong, and India also more than doubled from the year 2020. The “Global State of Crypto” report highlighted the narrowing gender gap as more women are entering as investors in the space. Around 47% of the “crypto-curious” people. who are likely to buy crypto for the first time in the next year, are women.
Gemini further found that Inflation was the primary driver for cryptocurrency adoption. It revealed that:
“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.”
For instance, 64% of the respondents from Indonesia and India believe that cryptocurrencies act as a hedge against inflation, which is in contrast to Europeans(15%) and US investors(16%).
Regulation and education are among the top reasons that are restricting investors from entering the crypto market. Of those who don’t own crypto assets 39% of respondents in the Asia Pacific, 37% in Latin America, and 36% in Europe are uncertain about regulations. In addition:
“Globally, respondents were nearly twice as likely to say that more educational resources on cryptocurrency would help them get started with crypto (40%), compared to recommendations from friends (22%).”