Rapture #184: Gemini's 2022 Global State Crypto Report

Rapture #184: Gemini's 2022 Global State Crypto Report

While the markets and SSV have been taking up much of my time lately, I had a chance to go through Gemini's 2022 Global State Crypto Report. Much of this report covers a survey conducted by Gemini, where they asked questions to 29,293 adults from 20 countries around the world.

According to Gemini, this sample is representative of the global population. Let's dive into some of the key findings

Adoption

Percentage of respondents by country that own crypto

According to Gemini's findings, 2021 was undoubtedly a breakout year for crypto. About half of crypto owners in the United States, Latin America, and Asia bought crypto for the first time in 2021. These numbers are roughly the same for large countries like Brazil and India.

Nearly 41% of respondents overall stated that they were crypto curious, signifying an increase in interest in crypto.

Crypto ownership in Brazil and Indonesia stands at over 40% of the population, while more than 30% of respondents from the UAE and Singapore own crypto. The US is middle of the pack for all of the countries surveyed, with approximately 20% of its population owning crypto.

Crypto ownership was higher across the board for the high income respondents in the survey, with 40%+ high income of participants from Germany, UK, and France stating they owned crypto.

Reasons why people have not bought crypto

US respondents stated that the #1 reason they don't own crypto is because they do not understand it. Another major reason people do not own crypto across all regions is that they have concerns about security.

The lowest cited reason for not owning crypto is that they are not backed by the government or other assets.

33% or more of participants in all countries stated that there is legal uncertainty surrounding crypto, which displays that regulators around the world have not made their view on crypto clear enough for the public.

Future of crypto

Fascinatingly, more than half the participants in regions like Latin America and Africa, both of which have experienced hyperinflation over the past decades, believe that crypto is the future of money. Similarly, more than half of India and Indonesia also believe crypto is the future of money.

Only 23% of the US respondents stated they believe crypto is the future of money.

Interestingly, respondents from countries with 50%+ devaluation of their local currency against the US dollar in the past 10 years were 5x more likely to say they plan to purchase crypto in the coming year.

Almost 50% of respondents in Africa and Latin America believe certain crypto assets are a great way to hedge against inflation, compared to around 15% for both the US and Europe.

Attitudes

Most holders of crypto across the board intend to hold their crypto rather than actively trade them.

Another interesting tid bit is the number of owners of crypto in the US doubled in 2021.

Takeaways

The main two takeaways I take from this report is crypto adoption is growing and the inflation hedge narrative is indeed gaining steam.

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