Crypto adoption is accelerating in 2022, with more opportunities to use digital assets for everyday purchases like movie tickets and popcorn. New research shows that 3.6 million Americans — or 10.7% of all crypto owners — will be using crypto for payment this year, according to the latest report from research firm Insider Intelligence.
Insider Intelligence says crypto’s use as a payment method will skyrocket 70% in 2022, with 3.6 million American adults paying for goods and services in crypto by December.
By the end of this year, a total of 33.7 million U.S adults will become crypto users. The company expects cryptocurrencies to exceed $10 billion in global transaction value this year.
“It is easier now to invest in cryptocurrency than ever before,” said Nazmul Islam, forecasting analyst at Insider Intelligence. “In 2021, cryptos became easier to purchase within apps consumers were already using, and while major financial institutions embraced crypto investments. Add hype surrounding meme stocks like Dogecoin to this easier accessibility, and you have a huge spike in ownership rates.”
"We also expect that more crypto options will be layered into how people pay, like cards and digital wallets. These factors should spur high crypto payment growth rates over the next few years,” David Morris, Insider Intelligence’s principal analyst, said.
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As growth of crypto adoption continues, Insider Intelligence believes that by 2023, the number of users may eclipse 37.2 million.
“Younger investors have a genuine positive outlook on blockchain technology and are buying crypto to hold for a while, expecting prices to continue increasing in the long run,” added Islam. “Older investors will be more risk-averse and leery of the volatile crypto market. Although, they are increasingly starting to invest in crypto as more retirement funds offer it as an option.”
Last year, the Crypto.com exchange tallied approximately 300 million crypto users around the world, a 178% growth from last January.
Gemini crypto exchange, owned by the Winklevoss twins, reports that almost half of those expected to wade into crypto next year are women.
Gemini also surveyed global crypto investors and determined that emerging markets like India, Hong Kong and Brazil saw half of their crypto investors only come into being last year. The company said that this was consistent with what it saw in the U.S., Asia, and Latin America, where 45% of crypto investors also purchased crypto for the first time last year.
However, some stakeholders like the IMF are concerned about what mainstream adoption of crypto might spell in these emerging markets in Asia and Latin America, especially if there is no international cooperation on setting crypto standards: “More widespread use of crypto assets in emerging markets could undermine domestic policy objectives. Multilateral cooperation will remain key to overcome these medium-term challenges,” the IMF recently wrote in a report.