According to a BlackRock report, crypto adoption has surpassed the growth pace of both mobile phones and the internet. While mobile phones took 21 years and the internet 15 years to reach 300 million users, cryptocurrencies achieved this milestone in just 12 years. This rapid growth is seen as a testament to the global interest in decentralised finance and blockchain technology, reflecting their potential to reshape financial systems and digital innovation worldwide. Time taken to 300 million users. source: BlackRock report . Bitcoin leads the pack As per the report, Bitcoin is the world’s leading and most widely adopted cryptoasset and boasts a market cap nearing USD $2 trillion. Its global and decentralized nature positions it as a potential alternative monetary system, particularly appealing during periods of global disorder and waning trust in institutions and fiat currencies. This has attracted significant attention from both institutional and individual investors seeking to diversify their financial assets with Bitcoin. The report added that historically, gaining exposure to Bitcoin has posed challenges, such as the need to open specialized accounts, high trading fees, and security concerns. However, the advent of investment vehicles like IBIT is changing the landscape. Similar to how ETFs have simplified access to hard-to-reach markets like gold and international stocks, IBIT provides a more convenient and efficient way for investors to gain exposure to Bitcoin. Drivers behind Bitcoin’s rapid adoption Since Bitcoin’s launch in 2009, its adoption has outpaced even other transformative technologies like the internet and mobile phones. The reports lists three key factors that have fueled this rapid growth: Demographic patterns: younger generations, often considered “digital natives,” exhibit a stronger affinity for digital innovation, including Bitcoin, compared to older demographics like Gen X and Baby Boomers. This generational shift has bolstered Bitcoin’s adoption. Global shifts: economic and political uncertainties, such as rising inflation, geopolitical tensions, and concerns about banking systems, have heightened Bitcoin’s appeal as a decentralized and non-sovereign asset. Future of finance: the ongoing digital transformation of the global economy has reshaped financial systems. The maturation of infrastructure supporting digital assets has reduced barriers to entry and introduced new use cases for Bitcoin, reinforcing its role in the evolving financial landscape. The future of Bitcoin investing Despite the surge in Bitcoin adoption, direct investment in the cryptocurrency often comes with hurdles. The reports add that this is reason why Bitcoin ETFs would be the next driver behind Bitcoin’s next leg of global adoption. Access: IBIT provides exposure to Bitcoin within a traditional brokerage account. As an ETF, it combines the appeal of Bitcoin with the familiarity of stock trading. Investors can buy and sell IBIT alongside stocks, bonds, and other ETFs across taxable and tax-advantaged accounts, such as a TFSA. Convenience: investing in Bitcoin directly can be complex, requiring accounts on crypto exchanges or specialized brokerages. Securing Bitcoin often involves setting up costly and intricate custody solutions outside these exchanges. IBIT eliminates these challenges by offering exposure to Bitcoin through an ETF — a trusted and widely traded investment vehicle. The post Why crypto hit 300M users faster than mobile and internet appeared first on Invezz
