Inflation is pushing investors towards cryptocurrencies

Last year, the number of investors in the cryptocurrency market could increase by nearly 70 percent. - according to a report published by Gemini "2022 Global State of Crypto Report". For purchase bitcon etc. was induced by the rapid loss of value of traditional money.

The report was created after a survey among 29 thousand. people in 20 countries. The age of the respondents ranged from 18 to 75 years, and the survey was limited to people earning more than 14. dollars a year.

- This could be a publication that helps understand global cryptocurrency adoption among retail investors. It turns out that 41 percent. of respondents made their first investment in cryptocurrencies last year, and the total number of investors increased in 2021 alone by approx. 70 percent. - underlines Daniel Kostecki, director of the Polish branch of Conotoxia Ltd.

Legal regulations as a problem

More than half of cryptocurrency owners in Brazil (51%), Hong Kong (51%), and India (54%) started operations in 2021. Among high-income respondents in developed countries, cryptocurrency ownership shows an upward trend, with 40% of cryptocurrency ownership. or more in the UK, Germany and France reported possession of cryptocurrencies.

Legal regulations are a concern all over the world. Among people who do not have cryptocurrencies, 39 percent. in the Asia-Pacific region, 37 percent. in Latin America and 36 percent. in Europe says there is legal uncertainty regarding cryptocurrencies.

The higher the inflation, the greater the demand for cryptocurrencies

- Another important finding is that inflation seems to be a key factor conducive to investing in new solutions. The report emphasizes that residents of countries that have recently struggled with hyperinflation usually agree with the statement "cryptocurrencies are the future of money" - explains Daniel Kostecki.

Respondents from countries that experienced a 50% or greater devaluation of their currency against the US dollar in the past 10 years were more than 5 times more likely to say they plan to buy cryptocurrencies in the coming year than respondents from countries that experienced a devaluation of less than 50%, including from South Africa, Mexico, India and Brazil. In the last of these countries, where the local currency has been devalued by over 200 percent. against the US dollar, 41 percent. of respondents have cryptocurrencies. In the USA, 40 percent. digital money owners see it as a hedge against inflation.

In general, the higher the inflation rate in a country, the higher the cryptocurrency adoption rate can be. If inflation continues to be an issue worldwide, it seems likely that this trend could intensify - estimates the director of the Polish branch of Conotoxia Ltd.