A mere 0.3 per cent of personal wealth is invested in cryptocurrencies, compared to 25 per cent in stocks. But by 2030, there may be 1 billion bitcoin users worldwide. The crypto business is still in the early stages of the adoption curve, according to a BCG report
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Updated: 23 Jul 2022 3:03 pm
A recent analysis by Boston Consulting Group (BCG) has forecast that by 2030, there could be as many as one billion Bitcoin users worldwide. The crypto business is still in the early stages of the adoption curve though, the joint report by BCG, Bitget, and Foresight Ventures, said.
According to the report, a mere 0.3 per cent of personal wealth is invested in cryptocurrencies, as opposed to 25 per cent in stocks. It did, however, mention that the comparatively low penetration simply shows that there is an opportunity for expansion. This is in line with the findings of a study released by the US-based bank, Wells Fargo.
The bank’s Global Investment Strategy Team had stated in its research titled Understanding Cryptocurrency that the sector was in its ‘hyper-adoption period’, and compared the current stage of cryptocurrency to that of the Internet in the mid-to-late 1990s.
The BCG analysis extended the Wells Fargo paper’s comparison of cryptocurrency to the earlier Internet stages as well as the impending digital revolution, known as Web 3.0. There is still a lot of room for development, the report said.
“If we use the number of cryptocurrency holders as a proxy for Web 3 users, and compare it against the adoption rate of Internet users in the 1990s, the overall number of crypto users is projected to exceed 1 billion by 2030,” the report said, however, adding that it is challenging to estimate whether the trend of cryptocurrency acceptance will continue.
Crypto Native Funds are growing rapidly.
The BCG analysis said that individual investors are still the main holders of Bitcoin, while hedge funds and venture capitalists are among the institutional crypto investors, adding that these participants nearly “doubled their exposure to $70 billion from Q4 2020 to the end of 2021.”
The research further indicated that “allocations will continue to climb.” In addition, the paper mentioned “an emerging class of crypto native funds that are gathering financial pace, such as Paradigm and Hashed.”
These VCs, however, were the ones that took the brunt of the Terra-Luna debacle, it added.
The BCG report further said that South Korean early-stage VC Hashed has earned a position among the world’s most financially-troubled VCs. According to CoinMarketCap statistics from April, the black swan incident cost the Hashed wallet more than $3.5 billion.
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