Key Takeaways:
- Through 2023, the number of US adults who own and utilize crypto for payments will increase by double digits, forecasts say.
- In the United States, 3.6 million will pay using cryptocurrencies, and the value of payments will increase by 70% in 2022. In the United States, 3,6 million people will use bitcoin to make purchases, and the value of these transactions will climb by 70% by 2022.
Insider Intelligence forecasts that the use of cryptocurrencies will continue to expand rapidly. In 2022, the total value of payments made using cryptocurrency will top $10 billion for the first time on a global scale, an increase of more than 70% from 2021. By 2023, the proportion of US people who own and utilize cryptocurrencies for payments is projected to climb by double digits. Meanwhile, Grand View Research predicts the cryptocurrency payment app market will expand at a compound annual growth rate (CAGR) of 16.8% between now and 2030. Other research paints a similar picture: The value of cryptocurrency payments is growing rapidly.
It is now easier than ever to invest in cryptocurrency. In 2021, it became simpler for individuals to acquire Bitcoin through apps they already used, and major banks began to accept crypto investments. Adding the buzz around meme coins like Dogecoin (DOGE) to this increased accessibility resulted in a massive increase in ownership rates.
The number of US adults who own at least one cryptocurrency will increase by 19.0% to 33.7 million by the end of 2022. This represents 12.8% of the population, surpassing 10% the previous year. The group of persons aged 25 to 34 will be the largest, followed by those aged 35 to 44. Adults over the age of 65 will be the smallest, but fastest-growing demographic.
Younger investors have a positive outlook on blockchain technology and are buying cryptocurrency to hold because they believe values will continue to rise over time. Older investors are more risk-averse and wary of cryptocurrencies' volatility. Even though an increasing number of retirement funds offer the option to invest in cryptocurrencies to retirees.
Bitcoin, the first cryptocurrency on the market, is the most popular cryptocurrency in the United States, with 25.2 million owners this year, up 16.7% from the previous year.
Following triple-digit growth in 2018, the global value of crypto payment transactions will increase by 70.5% to $10.40 billion in 2022. By the end of 2023, transaction values will exceed $16 billion, an increase of 55.4%.
This year, 68.6% more US adults will utilize cryptocurrencies to make a purchase than in 2017. The usage of stablecoins reduces the volatility of assets, and improvements in CBDC around the world are increasing interest in using crypto assets as a payment method. Research indicates that 10.7% of crypto owners will actually make a purchase, while the rest may be holding it to gain value for future purchases.
Last year was dominated by the construction of crypto payment infrastructure by networks. The usage of stablecoins reduces the volatility of crypto assets, and improvements in CBDC are increasing interest in using crypto assets as a payment method. PayPal and other prominent fintechs are studying the crypto-as-payment market. In the United States, government research into cryptocurrency, major companies beginning to integrate cryptocurrency payments, and increased demand for banks and credit unions to offer crypto solutions are all fueling a steady increase in adoption and use of cryptocurrency over the next decade and beyond.
In 2021, the market for cryptocurrency payments apps was dominated by the United States, which owned 32% of the global revenue share. However, such apps and technologies are rapidly gaining popularity in Asia Pacific, and with recent partnerships like that between crypto company Strike and e-commerce giant Shopify in April 2022, it is expected that acceptance of cryptocurrency payments will only continue to grow rapidly around the world.
Payment methods, such as cards and digital wallets, will be enhanced with additional crypto alternatives. In the ensuing years, these elements are anticipated to stimulate rapid crypto payment growth.
The future is bright for cryptocurrency. Practical use cases are being adopted globally as coins like Bitcoin and Ethereum become commonplace alongside standard payment methods like credit cards and cash.
Sources:
US Crypto Payments - Insider Intelligence Trends, Forecasts & Statistics
Cryptocurrency Payment Apps Market Share Report, 2030 (grandviewresearch.com)