A new study by venture capital firm Epoch shows that cryptocurrency adoption has skyrocketed, with over 824 million people worldwide – more than 10% of the world’s population – now owning some form of digital asset.
The report also paints a picture of rapid growth in the crypto space, fuelled by factors such as strong price performance, increased institutional interest and the emergence of accessible investment vehicles such as spot crypto exchange-traded funds (ETFs).
Bitcoin Leads the Pack
Epoch estimates that between 422 and 455 million people worldwide own Bitcoin (BTC), representing roughly 5% of the global population. The report attributes Bitcoin’s popularity to its perceived role as a store of value and a hedge against inflation, especially in times of economic uncertainty.
Epoch estimates that between 422 and 455 million people worldwide own Bitcoin. Source: The Bitcoin Ecosystem 2024 Report
The study also sheds light on the concept of “ownership by association,” where individuals are indirectly exposed to cryptocurrencies through their spouses or partners. By including these individuals, Epoch’s estimates are significantly higher than analyses that rely solely on on-chain and exchange data.
Women Enter the Crypto Space
Traditionally, cryptocurrency ownership has been dominated by young men. However, the study indicates a potential shift in demographics.
As the perceived risk and complexity of owning Bitcoin declines, more women are entering the space. Specifically, roughly 13% of women ages 26 to 45 report owning Bitcoin, although direct ownership figures are lower. This figure is heavily influenced by “ownership by association”.
Nearly 13% of women between the ages of 26 and 45 now report owning Bitcoin. Source: The Bitcoin Ecosystem 2024 Report
This suggests that the growing legitimacy and accessibility of cryptocurrencies, particularly through Bitcoin ETFs, are attracting a broader range of investors. Trust, especially through the involvement of traditional financial institutions in crypto ETFs, is attracting demographics that were previously reluctant to enter the digital asset market.
Institutional and Public Companies Join the Fray
The report highlights the crucial role of institutional adoption in accelerating cryptocurrency growth. The launch of spot Bitcoin ETFs in the US has been a game-changer, providing a regulated and accessible pathway for institutional investors to enter the market.
The corporate world is also embracing Bitcoin. In early 2020, only 13 public companies held 34,359 Bitcoin. By the end of 2024, as per the report, that number had jumped to 69 companies holding 590,000 Bitcoin. This trend shows no signs of slowing down, with major companies like Microsoft and Amazon facing shareholder proposals to allocate a portion of their cash reserves to Bitcoin.
Epoch’s analysis describes the impact of the situation if top ten US corporations, with a combined $817 billion in cash and cash equivalents, allocated just 5% to Bitcoin. This would result in an inflow of $40 billion, almost 2% of the total future supply of Bitcoin.
Nation-States Eyeing Bitcoin Reserves
The report also suggests that nation-state adoption of Bitcoin is reaching an inflection point. If countries allocated just 5% of their gold reserves to Bitcoin, it would translate to a $153 billion inflow, exceeding the current size of all US spot Bitcoin ETFs combined.
According to the report, the current shift towards Bitcoin as a reserve asset is driven by its unique characteristics: 24/7 settlement, independent custody, liquidity, scarcity, and ease of verification.
“For these reasons we view Bitcoin as a superior sovereign reserve asset to gold and expect it to consume that market in the medium term. Today, gold’s primary advantage over Bitcoin is the depth of its capital markets. However, we expect this advantage to transition to Bitcoin in the coming decade because Bitcoin is superior in nearly every other category.”
Epoch also predicts continued growth in cryptocurrency adoption, fueled by factors such as increased awareness, improved user experience, and the development of new and innovative use cases for digital assets.
The post One in Ten People Worldwide Now Own Cryptocurrency, New Study Finds appeared first on Cryptonews.
