- The use of cryptocurrency grew at an exponential rate last year.
- Cryptocurrency offers a way for these people to store their wealth safely.
Since the start of the COVID-19 pandemic, there has been a rising interest in cryptocurrency. The economic crisis caused by the pandemic has led people to seek alternative methods to store their wealth.
In 2021, the adoption of cryptocurrency grew at an unprecedented rate. According to an analysis by BanklessTimes.com, nearly half of all crypto owners in the United States, Latin America, and the Asia Pacific bought digital assets for the first time in 2021.
Brazil and Indonesia have the highest rates of cryptocurrency ownership at over 40%. The United States and the United Kingdom follow at 20% and 18%, respectively.
BanklessTimes.com CEO, Jonathan Merry, made remarks on the data:
The data shows that 2021 was a banner year for cryptocurrency with inflation driving adoption in countries that have experienced currency devaluation," said Merry. "We expect the trend to continue in 2022 as people look for alternatives to traditional financial systems. In due course, we believe that cryptocurrency will become mainstream.BanklessTimes CEO, Jonathan Merry
Why Invest in Cryptocurrency
Cryptocurrency offers many advantages over traditional fiat currencies. For one, cryptocurrencies are not subject to inflationary pressures. This means that your savings in crypto are not eroded by inflation.
Another advantage of cryptocurrency is that it offers a degree of anonymity. When you transact in crypto, your identity is not revealed. This makes it attractive to people who want to keep their financial activities private.
Unsurprisingly, the majority of crypto users are from developed countries. However, there is also growing adoption of cryptocurrencies in developing countries.
There are several reasons for this. First, many developing countries have experienced currency devaluation. This has made people lose faith in their fiat currencies.
Second, corruption is rampant in many developing countries. This makes it difficult to trust the government with your money.
Third, developing countries often lack access to banking services. This makes it difficult for people to store their wealth in banks.
Cryptocurrency offers a way out of these problems. That is why we are seeing growing cryptocurrency adoption in developing countries.
The Open, Permissionless Nature of Decentralized Finance
The unbanked today can access financial services using cryptocurrency. This is made possible by decentralized finance's (DeFi) open, permissionless nature. DeFi is a new paradigm in which financial services are built on decentralized protocols.
This means that anyone with an Internet connection can access these services without having to go through a bank or other financial institution.
It is estimated that 83.4% of the world's population own a mobile phone. This means that a large portion of the world's population has access to the Internet.
This is why DeFi is such a powerful tool for financial inclusion. It enables people in developing countries to access financial services that were previously out of reach.
What’s Next for Cryptocurrency in Developing Countries?
As crypto becomes more accepted, people will likely see growing cryptocurrency adoption in the asset class. People in developing countries will have a much-needed alternative to fiat currency. This will also provide a way for people to control their finances.
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