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For those who believe in money's objective qualities, cryptocurrency is a promising alternative. Aside from price fluctuations, most major cryptocurrencies such as Bitcoin and Ethereum have demonstrated enormous worth, encouraging investors to enter the field from a broader perspective. And this is just one of the reasons why the crypto industry touched the sky in 2021. Despite the recent market-wide correction, investors in the space are only increasing. The number of crypto users is expected to break one billion by the end of 2022. Last week, Crypto.com published its Crypto Market Sizing report, which examined cryptocurrency usage around the world. According to the study, the worldwide crypto population expanded by 178% in 2021, growing from 106 million in January to 295 million in December.
Crypto Adoption in the First Half of 2021 was 'Remarkable'
According to the report, crypto adoption was 'exceptional' in the first half of 2021, with bitcoin serving as the primary driver of growth. Furthermore, 'Nations can no longer afford to ignore the public's growing interest in crypto. In many circumstances, we may predict a more favorable attitude toward the crypto industry,' the report concludes. The website also noted:
“We expect developed nations to devise clear legal and taxation frameworks for crypto assets. More nations facing a highly inflationary economy and depreciating currency may adopt cryptocurrency as legal tender, following the example of El Salvador.”
More Countries Can Accept Bitcoin as Legal Tender
In September of last year, El Salvador made bitcoin legal tender alongside the US dollar. The country has since purchased 1,801 BTC for its treasury. The International Monetary Fund (IMF) is concerned, and El Salvador has been advised to abandon BTC as a national currency. Despite the IMF's stance on Bitcoin, numerous people, including Salvadoran President Nayib Bukele, believe that more governments will make the cryptocurrency legal tender this year. Other sovereign nation-states are expected to acquire bitcoin this year 'as a sort of insurance,' according to financial behemoth Fidelity.