Crypto Ownership: How Inflation, Regulation and More Led to Meteoric Rise in 2021

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2021 was the breakthrough year for cryptocurrency as 41% of global owners surveyed first bought it in 2021, with inflation being a primary driver for adoption, according to the reports from State of US Crypto and Global State of Crypto by Gemini.

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“With inflation at levels not seen in the US in 40 years, we were particularly interested in the findings about whether Americans are investing in cryptocurrency as a hedge against inflation,” Gemini Chief Operating Officer Noah Perlman told GOBankingRates. “We found that of all respondents in the US, only 16% say that certain cryptocurrencies are a great way to protect against inflation. But among crypto owners in the US, 40% say the same. This suggests that Americans could enter the crypto ecosystem after educating themselves on crypto’s potential inflation-hedging properties, a trend we expect to continue in the coming years.”

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The global Gemini report also found that globally, the gender gap in cryptocurrency may be narrowing, as 47% of those planning to buy it for the first time this year were female.

In the US, however, the gender gap is still large: 32% of investors are female and 67% are male. However, for the crypto-curious, the gender gap is reversed: 51% of women compared to 49% of men.

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In 2021, only 26% of current cryptocurrency holders were women, but Gemini said it sees the potential to change this significantly. “Women account for more than half of those interested in getting into crypto soon, which represents a major potential shift. The next wave of crypto buyers is also likely to be slightly older than current holders — with an average age of 44,” the US report said. “They also probably have slightly less money to invest than those who are already crypto holders and are more likely to live in a small town or rural area than in an urban area.”

The report also found that the crypto-curious public remains largely white: 76% of the crypto-curious public identifies as white or white.

Gemini notes that 13% of US adults — representing about 19.3 million adults — plan to buy cryptocurrencies in the next 12 months, which would nearly double the current population of crypto investors.

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In terms of barriers to entry, education remains the biggest obstacle to investing in cryptocurrency. Indeed, 39% of those who do not yet own cryptocurrency consider themselves “somewhat or very” knowledgeable about cryptocurrency, and 77% say they are open to learning more about digital assets, whether they already own cryptocurrency or not.

Finally, the report notes that the general knowledge about cryptocurrencies seems to reflect what we hear in the news. Bitcoin is almost synonymous with cryptocurrency, but few have heard of other coins. An overwhelming 95% have heard of bitcoin, while only 38% have heard of ethereum, the US report found.

In addition, 69% of cryptocurrency owners say they buy and hold cryptocurrency because of its long-term investment potential, while 36% say they actively buy and sell to make a profit, and 27% say they actively use it to make purchases. do on the internet.

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About the author

Yael Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including: Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also served as vice president/senior content writer for major New York City financial firms, including New York Life and MSCI. Yael is now a freelancer and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Université Toulouse-Jean Jaurès, France.

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