Cryptocurrency adoption rate expected to reach 8% by 2025: Report

Global cryptocurrency adoption is approaching a significant milestone, with 7.51% of the world’s population now using digital currencies, according to a report by MatrixPort.

The report expects this figure to exceed 8% by 2025, a sign that cryptocurrencies are likely to move from a niche market into the mainstream financial system.

The report highlights the growing influence of institutional participation, which is a key factor in the steady increase in adoption.

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Institutional influences on global adoption

The report cites increased institutional interest as one of the key factors accelerating cryptocurrency adoption.

Financial firms like BlackRock have played a pivotal role in building trust and legitimacy for digital assets within the traditional financial system.

Markus Thielen, founder of 10x Research, spoke to Cointelegraph about the role institutional products play in the growth of Bitcoin (BTC) and the broader cryptocurrency market:

“Bitcoin’s evolution has continued to drive price increases as new layers of Bitcoin acquisitions are introduced into the financial markets. (…) The potential introduction of options based on Bitcoin spot ETFs could “It could spark another wave of institutional interest.”

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Bitcoin’s Role in Economic Uncertainty

Bitcoin plays a central role in overall cryptocurrency adoption and is often viewed as a store of value, especially during periods of economic uncertainty.

Thielen noted that historically economic hardships, such as the European debt crisis and the devaluation of the Chinese yuan, have increased demand for Bitcoin.

Thielen added:

“(…) If the economy slows due to a recession or trade war, rising U.S. debt levels could spark strong demand for Bitcoin. “This trend positions Bitcoin as a hedge during times of economic uncertainty.”

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Challenges to Cryptocurrency Adoption

Despite the optimistic outlook highlighted in the MatrixPort report, several obstacles remain, including regulatory considerations, market volatility, and retail investor security concerns.

Hacks and scams, such as wallet leaks, still pose a threat to the cryptocurrency space. Additionally, institutional investors can exacerbate market volatility, and large sell-offs during macroeconomic changes can potentially destabilize markets.

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