The more people know about crypto, the more they are interested in investing in it – and with 40% of Americans now saying they have or will be adding it to their portfolios, it’s clear the word is getting out. When combined with the 42 countries who have passed or discussed crypto legislation this year, it’s easy to see how crypto adoption is becoming a reality around the world.
Inflation is one of the biggest factors boosting crypto. According to Grayscale’s most recent poll on cryptocurrency, many Americans are feeling its effect, with 26% of respondents calling it the biggest problem facing the country (compared to gun violence at 15% for the next highest). It’s not just in America, with countries facing the highest levels of inflation (such as Argentina) being among the top adopters.
While inflation has made some wary of making investments they see as risky, those who are familiar with crypto are even more interested in investing in it. That’s likely because crypto has been touted as a hedge against inflation, particularly when viewed as a long term investment. Others see crypto’s potential in stymying inflation, making it particularly appealing for those interested in diversifying their portfolios to avoid the potential crash associated with fiat currencies. (Not to mention problems from political gridlock, such as government shutdowns.)
In the U.S., cryptocurrency holders tend to be young Black or Hispanic men, with the emphasis on “young”. According to the Grayscale survey, it’s Gen Z and Millennials who agree that “Crypto and blockchain technology are the future of finance”, demonstrating that it’s people who are in the workforce currently and looking ahead that are most interested in adopting crypto.
Importantly, a staggering 68% of those between the ages of 18-34 said they would be either “much” or “somewhat” more likely to adopt crypto if clearer regulations and policies were in place. That brings us to the next point to consider – how 42 countries in the past year alone made efforts to establish regulatory frameworks for crypto.
Global Crypto Regulations: A Roadmap for Secure Digital IRA Investments
The report, which comes from PriceWaterhouseCoopers (or PWC), goes on to say that 23 countries – including several EU states, Japan, and the Bahamas – engaged in comprehensive legislation, meaning the policies spanned “stablecoin regulation, travel rule compliance, licensing and listing guidance, and crypto framework development.” The remaining 19 countries examined one or more of the aspects of crypto regulation, which signals a willingness to move forward with handling and adopting the currency.
Although impending regulatory changes aren’t always music to the ears of investors, in the case of the cryptocurrency market, it absolutely is. That’s because every country that outlines a path for transacting and investing in crypto is providing it with legitimacy on the market. For large and small scale investors alike, that builds a measure of comfort that leads directly into more investing – particularly as other holdings (such as fiat currencies) start to slip.
With that said, navigating regulatory changes can be tricky. Investors with a crypto-based IRA account through BitIRA can rest assured that our experts will ensure secure and compliant investments in the ever-evolving crypto landscape. Get in touch with us today to find out more.