Crypto To Reach One Billion Users In 2030

[TL; DR]

With over 300 million crypto users in 2021, some researchers assert that the number will increase to 1 billion in 2030.

In a report by Boston Consulting Group, Bitget, and Foresight ventures, the estimated number of crypto users will reach 1 billion in 2030.

The estimation generated mixed reactions in the crypto ecosystem.

In a survey conducted by Finbold in January 2022, about 10.2% of global internet users own some form of cryptocurrency.

Thailand, Nigeria, and the Philippines top the list of countries with the number of crypto users.

The Cambridge Business School reported that about 5 million people held crypto assets in 2016, which increased to about 101 million in 2020.

By 2021, the number of crypto users will stand at 300 million.

This increase shows that the estimation by Boston Consulting Group and others will likely pass in 2030.

Some other drivers, such as the switch launch of Ethereum 2.0, the wide acceptance of Non Fungible tokens, and the Metaverse, would also lead to an increase in crypto usage.


Every day, the amount of crypto users increases. Investors and enthusiasts will always find a reason to join the cryptocurrency ecosystem, whether the market is rising or falling.

While there are various drivers for the continuous increase of crypto users, it is unclear what the primary driver is. Additionally, research has it that there are over 300 million crypto users worldwide as of 2021; on what basis or criteria did the Boston Consulting Group arrive at the 1 billion users estimation by 2030?

Not to worry, this article will explain how the number of crypto users has continued to increase and how feasible it is to achieve the 1 billion users estimation.



1 Billion Crypto Users Estimation By 2030

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Boston Consulting Group, Bitget, and Foresight Ventures report that the total number of crypto users is estimated to be 1 billion by 2030, generating mixed reactions among experts and industry players.

In the report titled “What does the future hold for Crypto exchanges,” 0.3% of individual wealth is domiciled in digital assets while 25% is in equities. Going by the current adoption rate, the total number of crypto users will likely reach 1 billion by 2030.

While some experts believe that the crypto users might surpass 1 billion by 2030, some opine that the total number of crypto users might not reach 1 billion by 2030. The question now is which set of experts' predictions will likely pass.

No one can see the future; we can only predict by analyzing past activities, occurrences, and statistics. It is, therefore, suitable to look at the trend of crypto adoption and see which of the predictions will likely come to pass.

In a survey conducted and published by Finbold in January 2022, about 10.2% of global internet users own some form of cryptocurrency. In the same study, Thailand has the highest number of crypto users, followed by Nigeria and the Philippines. Other countries in the top ten rankings include South Africa, Turkey, Argentina, Indonesia, Brazil, Singapore, South Korea, and Malaysia.

A look at the population growth in these countries and the number of crypto users shows an alarming increase in both population growth and crypto usage.

For instance, the Cambridge Business School reported about 5 million holders of crypto assets in 2016, and by the third quarter of 2020, the number had increased to about 101 million. From the third quarter of 2020 to the end of 2021, the population of crypto users has risen to about 300 million.

These statistics show that within four years (2016 to 2020), the total number of crypto users increased by about 200 million. Using these statistics, the total number of crypto users is estimated to surpass 1 billion by 2030.

Similarly, experts assert that with technological advancement, the crypto market will continue to expand, and new users will continue to invest in cryptocurrency. For instance, the second largest crypto token, Ethereum, is on the verge of switching to its updated version 2.0

This Ethereum version 2.0 will deploy the proof of stake consensus mechanism characterized by scalability, faster transactions, low transaction fees, etc. These scalable features will undoubtedly increase the usage and adoption of digital assets.

Also, there are more than 4000 digital assets available online. This outburst results from the ease of developing a blockchain protocol and the low entry-level required of developers.

There are several other blockchain protocols underway with their native tokens. The more these protocols are launched into the crypto market, the more users will troop in to invest in them and become holders.

Some other factors that may drive the number of crypto users to reach 1 billion in 2030 include music, films, sports, games, and other entertainment acts. This is because almost every internet user is passionate about one entertainment act. You are a sports person, music enthusiast, gamer, or movie frick.

Developers and industry players in the decentralized ecosystem have identified this potential. The Metaverse or web3 fuses real-life experience into a virtual world. If you are a gamer, you will need to hold digital tokens to participate in some metaverse games and earn rewards, and this arrangement automatically makes you a crypto user.

A similar case is a Non-fungible token (NFT) ecosystem. As an art creator, photographer, musician, or digital art enthusiast, you need to hold a certain amount of crypto tokens to mint or purchase the available collections. So if you are interested in minting and selling your artwork or willing to buy one of the NFT collections, you will first become a crypto holder.

These are some of the drivers of the crypto market, and as these technological advancements continue to increase, more people continue to embrace them and utilize them.

According to a Mckinsey & Company report, the Metaverse could be valued at $5 trillion (market cap) by 2030. This valuation shows how big the Metaverse is expected to grow, and being one of the cryptocurrency market drivers, the latter will increase simultaneously.


Conclusion

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The report by Boston Consulting Group, Bitget, and Foresight Ventures that crypto users will reach 1 billion by 2030 is mainly accurate considering the past activities and growth in the cryptocurrency ecosystem.

The other set of experts that do not believe in the 1 billion estimation opines that the volatility of the crypto market and the criminal activities that have characterized the ecosystem, among other issues, will reduce the number of crypto users.

I think the former set of experts is suitable and that as time goes on, the issues raised by the latter group of experts will be tackled, thereby increasing crypto adoption.



Author: Valentine A., Gate.io Researcher
This article represents only the researcher's views and does not constitute investment suggestions.
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