Global management consulting firm Boston Consulting Group (BCG) has stated that crypto adoption is likely to accelerate further, driven by both retail and institutional investors.
In a research paper published on July 22, the group of researchers stated that the adoption will likely culminate in the sector harbouring about one billion users by 2030. The report noted that the projection is mirrored in the internet adoption across the 1990s.
“If we use the number of cryptocurrency holders as a proxy for Web3 users, and benchmark it against the adoption rate of Internet users in the 1990s, the message is clear: there is plenty of growth to come. While it is difficult to predict if the trendline of crypto adoption continues, the total number of crypto users is likely to reach 1 billion by 2030,” the report said.
North America to lead in adoption
However, BCG stated that the adoption would be influenced by different geographies, with North America leading.
The region is currently the most invested sector, with an average holding of crypto at about $18,000. Elsewhere, Africa is the least invested, with average crypto holding about $190.
The report added that the current adoption rate is slow compared to other investment products like equities, payment technologies and private equity allocation by institutions.
Only 0.3% of individual wealth is held in crypto
BCG also gave insights into crypto wealth, stating that just 0.3% of individual wealth is currently held in digital assets compared to 25% in equities.
The report also pointed out that currently, retail investors are holding more crypto, but institutions are unevenly adopting digital currencies. Notably, BCG identified hedge funds and venture capital firms as the most willing institutions intending to adopt cryptocurrencies.
Generally, the researchers stressed that the crypto sector is here to stay despite the recent market meltdown, with the top ten assets establishing themselves over the last few years.
Finally, BCG pointed out that the increasing institutional investment in crypto is another sign of bullish sentiment around the sector.