The Boston Consulting Group believes that by 2030, there will be 1 billion crypto users.
In research published on July 22, 2022, the management consultancy company compares crypto acceptance to the expansion of the internet during the 1990s. The business expects that by 2030, North America will be the leader in crypto adoption, with the most investment per user. The typical North American user has $18,000, or around 0.4% of their wealth, in cryptocurrency.
The number of crypto applications surged from 800 to 10,000 last five years. Initial Coin Offerings, in which a crypto company’s bespoke governance tokens are sold to generate funds, witnessed a surge in 2017 and spawned several crypto exchanges that now dominate trade activity, according to the research.
However, conventional asset investments continue to outpace crypto investments. BCG believes that 0.3% of user wealth is stored in cryptocurrencies, compared to 25% owned in stocks. Institutional investment in the sector has been inconsistent, with venture capital and hedge fund companies leading the way in adoption. Between the fourth quarter of 2020 and the end of 2021, institutions invested $70 billion in cryptocurrencies. Tesla, Block, and Michael Saylor’s MicroStrategy are famous companies that have invested in cryptocurrencies. MasterCard intends to make it possible to make purchases with cryptocurrencies without first converting them to fiat cash.
Banks are also participating in the trend. The JPMorgan Chase bank was the first to establish a BTC fund and is now creating blockchain assets. In March of 2021, Morgan Stanley began providing its wealth-management customer’s exposure to bitcoin ETFs.
Increasing growth of cryptocurrency exchanges will increase adoption
BCG says that boosting the penetration of cryptocurrency exchanges is essential for the expansion of cryptocurrency adoption. Cryptocurrency exchanges have experienced consolidation periods, during which they’ve established themselves in nations by lowering their costs due to their dominating market share. Due to aggressive Mergers and Acquisitions methods, prominent offshore exchanges like FTX have moved ashore in industrialised nations such as Japan, where FTX purchased Liquid.
To develop a market in a particular area, such as Asia-Pacific, enterprises supplying localised goods have also contributed to regional penetration and consolidation. Due to fast product development and solid systems with the capacity to handle high trade volumes, businesses like Binance have the potential to displace local exchanges. Binance, an industry leader in spot and futures markets, has regularly fought with authorities over its unregulated derivatives offerings.
As it attempts to extend its presence in the United States, FTX is seeking clearance from the Commodities and Futures Trading Commission to conduct disintermediated trading for derivatives products.