BlackRock Study Finds Bitcoin Adoption Rate Outpaces Internet and Mobile Growth
Bitcoin Adoption Surges Among Millennials and Gen Z, Outstripping Internet and Mobile Growth, Says BlackRock; Launches New IBIT ETF for Easy Investing.
Key Takeaways:
- According to BlackRock, Bitcoin’s adoption rate outpaces revolutionary technologies like the internet and mobile phones.
- Millennials and Gen Z drive Bitcoin adoption, significantly outpacing Gen X and Baby Boomers.
- In response to the complexities of direct Bitcoin investing, BlackRock introduced IBIT ETF to simplify access for all investors.
On January 13, BlackRock released a comprehensive report analyzing trends in the crypto market. The study revealed that Bitcoin adoption has grown faster than groundbreaking technologies like the internet and mobile phones since its launch in 2009.
BlackRock's insights align with Bitcoin's position as the world’s leading and most widely adopted cryptocurrency, boasting a market cap of nearly $2 trillion.
Crypto Adoption Hits 300 Million Users in 12 Years
According to BlackRock’s market insight report, the crypto market is experiencing unprecedented growth, with a current record of 300 million users globally in 12 years. In contrast, technologies like mobile phones and the internet required 21 years and 15 years, respectively, to achieve similar levels of adoption.
Furthermore, the report highlights three key factors in adoption: shifting demographics, global challenges, and the digital evolution of finance.
Demographic trends have emerged as one of the most significant drivers of Bitcoin adoption.
Digital natives have grown immersed in technology and are naturally drawn to digital currencies like Bitcoin. This stands in marked contrast with Gen X and Baby Boomers, who are generally more hesitant toward adopting new technologies.
Global economic and political shifts have also played an important role in Bitcoin's growing appeal. Concerns about inflation, banking instability, and political divisions have driven more individuals and institutions to seek decentralized assets outside traditional financial systems.
With its limited supply and decentralized structure, Bitcoin has become a beacon of financial security for those looking to protect their wealth against economic uncertainties.
The future of finance is the third major factor accelerating Bitcoin’s adoption. The infrastructure supporting digital assets like Bitcoin matures rapidly as the global economy continues digital transformation.
Improved accessibility, enhanced use cases, and greater institutional involvement are reducing barriers to entry and making Bitcoin more practical for a wide range of users.
BlackRock Tips IBIT Fund to Increase Bitcoin Adoption
BlackRock's report also claims that its Bitcoin ETF fund, IBIT, would increase adoption, leading to more accessibility, convenience, and integrated technology of the asset.
Exposure to U.S. spot Bitcoin ETF is increasing, as evidenced on January 6, when nearly $1 billion inflow was recorded. Fidelity’s Wise Origin Bitcoin Fund took in the largest share, drawing $370.2 million, while BlackRock’s IBIT fund followed closely behind with $209 million.
Although these figures highlight the increasing confidence in Bitcoin as an investment vehicle, BlackRock aims to build more exposure with new Bitcoin ETF products launched in Canada.
Meanwhile, the success of Bitcoin ETFs has also opened the door for other cryptocurrencies, such as XRP and Solana, to follow suit.
According to recent projections from JP Morgan, XRP and Solana exchange-traded products (ETPs) could see substantial investment, with estimates ranging from $3 to $6 billion for XRP and $4 to $8 billion for Solana within their first six months of trading.
However, despite these projections, the researchers believe it will be difficult for other crypto ETFs to replicate Bitcoin ETFs' success.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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