Crypto adoption is outpacing the rise of the internet by transforming the global financial landscape at an unprecedented speed. With the rise in cryptocurrency, people are shifting digital assets from speculative to actual financial assets. It is worth noting that the revolution is unfolding globally and changing the financial environment. In this article, we’ll talk about the reasons behind the fast growth of crypto and its impact worldwide.
Internet Vs Crypto Adoption
Most people today wouldn’t know what to do without the Internet. This clearly explains how much it has penetrated our daily lives. The internet that we use today started in the early 1990’s. At that time, computers were expensive, and people needed them to use the internet. Further, there wasn’t as much content as we have today, which seriously affected the penetration of the Internet. As they say, great things take time to create, likewise, it took the Internet nearly 10 years, from 1989 to 1997, to amass nearly 500 million users from the initial millions of users.
Source: OKX
On the other hand, the use of cryptocurrencies, which started with millions of users in 2016, exponentially increased to over 800 million users by 2024. The growth rate of crypto easily outpaced the Internet because of factors like global accessibility, increased interest in blockchain technology, and decentralized finance.
Reason Behind The Fast Growth of Crypto
Initially, many people considered crypto to be nothing but an elaborate scam. Even prominent figures who are now pro-crypto, like Michael Saylor and Donald Trump, were initially skeptical about the future of cryptocurrencies. Donald Trump, in 2019, tweeted that he was not a fan of Bitcoin and other cryptocurrencies and labeled them as ‘not money’ and that their ‘value was highly volatile and based on thin air.’
However, all of this changed when many educational materials about cryptocurrencies became widely available on the internet. It was only then that people were able to have a clearer picture of crypto and blockchain technology. Once armed with the knowledge, entrepreneurs began creating NFTs, dApps, and DeFi while traders joined the crypto market. Moreover, with the increase in awareness, the adoption of cryptocurrencies increased.
Another key driver for the wider adoption of digital assets is its potential to hedge against inflation. Notably, Bitcoin is called the best hedge for assets and is considered by many as the ‘digital gold.’
Impact of Crypto’s Rise on the Globe
Many industries were affected by the emergence of crypto, including finance, technology, gaming, and many others. Crypto has opened doors to those with no bank account or the unbanked population to engage in the global economy. Furthermore, in areas where there is limited access to traditional banks, crypto wallets have become a secure way to store and transfer funds.
Compared with cross-border transfers or remittances, which are very time-consuming, the use of cryptocurrencies is not only cheaper but also faster. Subsequently, decentralized applications, NFTs, and smart contracts have been used in supply chain management, health care, gaming, etc. It has also given rise to numerous professions, including blockchain developers, traders in cryptocurrency, and legal professionals in cryptocurrency, among others.
Due to the emergence of crypto, different governments worldwide are looking for policies that will help guarantee the safety of users’ money while encouraging innovation and stability. These methods aim to strike a balance between preventing illegal activities like money laundering and scams through measures like AML and compliance and promoting the growth of blockchain technology. In addition, some countries are trying to explore the Central Bank of Digital Currencies (CDBC), while other countries like El Salvador promote cryptocurrencies by making Bitcoin a legal tender.
Crypto’s Journey From Niche Product to Mainstream
The journey of crypto started with the launch of Bitcoin in 2009 by the mysterious Satoshi Nakamoto. At first, it was regarded as a special product that had no practical use in daily life. However, all this changed over time, and its usage increased as Bitcoin and other cryptos were revealed in decentralization and financial independence. One of the major milestones in the world of cryptocurrencies is the launch of Ethereum and smart contracts in 2015, which expanded the use cases of blockchain into decentralized finance, NFT, and dApps. The awareness of crypto skyrocketed with the bull run in 2017 and 2021. Further, Bitcoin achieved a new all-time high of $69,000 in 2021. Now, crypto has transformed itself from a niche product to a mainstream product with the potential to shape the future of the world.
Future of Crypto
With the conclusion of the U.S. presidential elections in November, Donald Trump, a pro-crypto candidate, won the election, and the future of crypto looks more promising than ever. During his campaign, Trump publicly expressed his support for Bitcoin and cryptocurrencies and said that he would create a Bitcoin and crypto presidential advisory council. Following the results, SEC chair Gary Gensler announced that he would be resigning from his position on the day of Trump’s inauguration as President.
After Gensler’s resignation, Trump would most certainly appoint a crypto-friendly person as the next SEC Chair. This could be the time for crypto to experience a massive increase in adoption, with the SEC supporting rather than being against it. Further, with support from the President, several crypto regulations can be clarified.
Aside from the US, other countries are also stepping up their crypto adoption. Last month, Russia passed a new law that controls the mining of cryptocurrency, while the United Kingdom is expected to launch a policy framework on the use of cryptocurrencies in 2025.
Considering the environment in which cryptocurrencies operate globally, it is evident that the concerned governments are coming up with policies to either accept and regulate currency or ban it after perceiving the risks associated with it. This acceptance could pave the way for crypto to become a major part of global financial systems.
Conclusion
Although crypto adoption is much faster than the Internet, the latter helped to accelerate the adoption of crypto. Currently, the global crypto landscape stands at a major turning point, with pro-crypto policies being implemented or about to be implemented. As various governments, investors, and institutions embrace cryptocurrencies, we can determine that the world of digital assets is moving towards mainstream acceptance.
