Boston Consulting Group (BCG), a global business consulting organisation, has predicted that crypto adoption would grow further, led by retail and institutional investors.
In a 22-July-published study report, a group of experts predicted that by 2030, the industry would likely have about one billion users. In the 1990s, internet adoption paralleled the forecast.
Taking the number of bitcoin holders as a proxy for Web3 users and comparing it to the Internet adoption rate in the 1990s, it is clear that there is enough room for expansion. The overall number of crypto users is expected to reach 1 billion by 2030; however, it is hard to forecast whether the current adoption trend will continue.
Crypto adoption chart. Source: BCG.
North America will be first in adoption.
However, geography may impact the adoption, with North America taking the lead.
The area is the most invested sector at now, with an average holding value of around $18,000. Africa is the least-invested region, with an average crypto holding value of $190.
The present acceptance rate is modest compared to other investment products such as stocks, payment technology, and private equity allocation by institutions.
Only 0.3% of individual wealth is kept in crypto.
BCG also provided information about crypto wealth, claiming that just 0.3% of individual wealth is presently held in digital assets, compared to 25% in stocks.
Individual investors now hold more crypto, whilst institutions embrace digital currencies inconsistently. Notably, hedge funds and venture capitals were recognised by BCG as the organisations most likely to embrace cryptocurrency.
Despite the current market crash, the crypto industry is here to stay, with the top 10 assets establishing themselves over the last several years.
According to BCG, the increased institutional investment in crypto is another indicator of the sector’s optimistic mood.