Bitcoin’s next developmental phase will highlight the institutional adoption of crypto as it continues to feature mass adoption by different world governments.
The number of crypto users has been on the rapid rise since the sector’s relevance boom in 2020 leveraged on the Covid-19 pandemic. According to a report published by crypto.com, the number of crypto users, come 2023, will have reached 1 Billion.
This is a ray of sunshine in the darkness of Bitcoin’s current predicament of unrelenting price downtrend. The optimistic report from crypto.com might be a turning point for Bitcoin price action.
Crypto.com’s report convincingly concluded that a combination of adoption and regulation-related developments have upped the relevance of virtual currencies in the world.
Developing nations have started to mirror El Salvador’s adoption of Bitcoin in large numbers and adaptation of crypto-affiliated techs to improve their economy and foster development. Moreover developed nations globally are also shifting their stance from total opposition to a more receptive and friendlier outlook.
Crypto.com cited these two reasons as major factors that will push the rapid adoption of cryptocurrencies globally since no country can afford to disregard the increasing relevance of virtual currencies and the public’s paradigm shift towards the asset class.
Global Crypto Population Growth
Last year, the global crypto population grew by over 178%, increasing from the year start of 106 million crypto users to December’s recorded users of 295 million.
The growth of the industry in 2021 was kick-started by Tesla and Mastercard’s adoption of cryptocurrencies for payments for products and services as well as fintech applications. However, in the second half of 2021, Bitcoin fueled the industry’s growth as it outperformed Ethereum based on adoption.
Shortly after El Salvador’s adoption of Bitcoin as legal tender, the month of August featured a significant rise in the adoption rate of cryptocurrencies globally. This significant adoption rise was featured in crypto.com’s research report.
Crypto.com’s Crypto Adoption Projections
Given the stats recorded in 2021 for the growth of crypto users, crypto.com has projected estimates by extrapolating 2021’s growth rate. Crypto.com’s extrapolation process predicted a potential growth that will see crypto users reach 1 billion by the end of 2022.
These theoretical extrapolations and projections however remain the same as the crypto industry’s adoption are still far from the seeded projections.
In other to veto Crypto.com’s predictions, El Salvador’s crypto adoption and world governments’ “friendlier” stance about the asset class will not be enough. However, a recent Fidelity report has revealed that innovation arrangements and a paradigm shift will see more nations adopt Bitcoin in 2022.
The rejection of Bitcoin ETFs that could be a potential market tuner for upward price action served to empower bearish sentiments in the industry, however, Crypto.com’s optimistic adoption prediction is an anchor for bullish sentiments in the storm of price dump market-wide.