Key Insights:
- According to a recent estimate, just 4.5 percent of the world’s population has invested in cryptocurrencies.
- According to Binance’s CEO, investors only spend 10 percent of their net worth in cryptocurrency.
- On the bright side, Bitcoin has surpassed $30k for the first time since June 2022.
Even though there has been a growth in the number of people investing in cryptocurrencies over the last few years, most of the world’s population still needs to adopt the Web3 revolution. According to a statistic published recently, less than 5% of the total population of the globe has bought cryptocurrency.
Binance CEO disputes adoption rate
Notably, Changpeng Zhao, the CEO of Binance, the largest cryptocurrency exchange, expressed a divergent view, significantly lowering the estimate. Zhao contended that for those investors who hold cryptocurrencies, the amount invested is less than 10 percent of their total net worth. As a result, the Binance CEO concluded that the adoption rate, based on net worth, is below 0.45 percent.
According to a prominent financial media report, the total global wealth is estimated at $13.7 trillion as of 2023. Additionally, as stated by Zhao and supported by CoinMarketCap data, the cryptocurrency market accounts for roughly $1.25 trillion, nearly 10 percent of the total global wealth.
In addition, FatMan, a prominent member of the Terra Luna community, stated that adopting cryptocurrency should involve utilizing blockchain technology in a practical and valuable way rather than simply putting all of one’s assets into cryptocurrency.
Crypto chamber cautions
In addition, a supporter of cryptocurrencies has stated that the crypto sector might convey the image of being an enclosed environment where sophisticated frauds and gaming are supported. Consequently, “investing all of one’s assets in the unpredictable market would not be a financially responsible choice.”
In an exciting development, Bitcoin surpassed the $30k mark for the first time since June 2022, when Terra Luna collapsed. Similarly, Ethereum is making progress toward reaching the $2k threshold.
Furthermore, the current spike in Bitcoin’s price is connected to the reactivation of Tether printers, according to the “WhaleWire” account. The account claimed that the growth in Bitcoin’s value was caused by billions of USDT, which have no underlying worth, rather than genuine market demand. Furthermore, the account said that Tether purposefully boosted Bitcoin’s price to entice novice investors into the market, leading them to panic and sell, enabling Tether to benefit from their losses.
