The year 2022 holds a lot of promises for the broader digital currency industry as a forecast from Insider Intelligence shows adoption of crypto payment will continue to rise.
The data analytics platform predicts that the number of American adults who will own cryptocurrencies and utilise these nascent asset classes for payments will surge by double digits this year through 2023.
According to the forecast by the platform, payments made through cryptocurrencies will surpass $10 billion globally, a figure if achieved will imply a more than 70% growth from the 2021 record.
“It is easier now to invest in cryptocurrency than ever before,” says Nazmul Islam, forecasting analyst at Insider Intelligence. “In 2021, cryptos became easier to purchase within apps consumers were already using, while major financial institutions embraced crypto investments. Add hype surrounding meme stocks like Dogecoin to this easier accessibility, and you have a huge spike in ownership rates.”
When Satoshi Nakamoto introduced Bitcoin in 2009, its utility was limited to payments, which swiftly grew to become an investment asset in the past couple of years. As the industry keeps up its maturity and institutional investors wade in, a wider range of utility is now being attached to cryptocurrencies as a whole.
In the forecast of the adoption of the digital assets this year, Insider Intelligence predicts that more adults in the 25 to 34 age range will dominate the pack, followed by those ages 35 to 44. The smallest but fastest-growing group will be adults ages 65 and over.
“Younger investors have a genuinely positive outlook on blockchain technology and are buying crypto to hold for a while, expecting prices to continue increasing in the long run,” said Islam. “Older investors will be more risk-averse and leery of the volatile crypto market. Although, they are increasingly starting to invest in crypto as more retirement funds offer it as an option.”
Digital currencies, as well as the innovations it heralds, have come to stay, and a number of financial institutions are doing all they can to be positioned enough to catch a fair share of the emerging market that will be built around these transitioning nascent asset class.
Image source: Shutterstock Source