The number of global cryptocurrency users pushed to new heights in 2021 from just over 100 million crypto users to 292 million in less than 12 months as Central Banks across the world battle with rapid monetary inflation.
New data released by Crypto dot com on the global market size of crypto users shows it only took four months to double global adoption from 100 million to over 200 million. While much of this growth was driven by institutional adoption of Bitcoin, substantial gains in the altcoin space around May pushed the overall user counts to a new all time high.
Big name institutions like PayPal, Microstrategy, Visa and Mastercard have all announced some form of involvement with cryptocurrecny. Another factor leading to the rapid user growth was the “celebrity effect” from figure like Elon Musk, who is often criticized for manipulating the market through his twitter activities.
Crypto dot com is also responsible for the celebrity effect with their “Fortune Favors the Brave” commercial staring actor Matt Damon. The company invested $100 million to reach nearly 20 countries in one of the largest crypto marketing campaigns to date.
Most of the celebrity action this year, however, has been seen in the NFT space as many influential figures like Snoop Dogg, Jimmy Fallon, and Post Malone bring crypto awareness to their fans. Big corporations like Pepsi, Adidas, Budweiser, and Nike are also all getting involved in the crypto space.
The mass adoption of digital assets comes as more nations face high inflationary economic policy and depreciating currency. Turkey, for example, had the highest number of crypto transactions ever in its history as the Turkish lira hit new lows after its Central Bank reduced interest rates for the fourth successive month.
As a result, the price of Bitcoin against the lira is up over 200% over the past year, nearly double the gains seen against the US dollar in the same period. Meanwhile in the United States, president Joe Biden continues to support money printing despite 40% of US dollars in existence were printed in the past 12 months.
The lira has lost nearly 50 percent of its value this year while citizens in the US have lost nearly 15% of their purchasing power. As governments continue to increase fiat supplies through monetary policy, Bitcoin will become more scarce, thanks to its deflationary nature.
Its estimated that 90% of the Bitcoin supply has been mined so far, or 18.9M total coins. All that remains is about 2M Bitcoin left to mine until the year 2140, over 119 years away, meaning that the supply of new coins entering the market is decreasing at a rapid pace.