The number of crypto users has surged to 300 million, achieving this milestone nearly twice as rapidly as the internet and three times faster than mobile phones. What drives this swift adoption?

A recent study conducted by BlackRock reveals that global crypto adoption has reached 300 million users in just 12 years, a speed approximately 43% quicker than that of mobile phones and 20% faster than the internet. In contrast, mobile phones took 21 years to reach the same figure, while the internet did so in 15 years.

BlackRock report shows a horizontal bar chart comparing the time taken to achieve 300 million users for three technologies: mobile phones (21 years), the internet (15 years), and cryptocurrency (12 years).
Cryptocurrency adoption has significantly outpaced both mobile phones and the internet, achieving 300 million users in just 12 years as compared to 15 years for the internet and 21 years for mobile phones. Source: BlackRock

BlackRock’s report also highlighted that demographic changes, such as the rise of “digital natives,” play a crucial role in this adoption, with younger generations being more inclined towards embracing Bitcoin (BTC) compared to GenX and Baby Boomers.

Additionally, research from Empower, a U.S.-based financial services firm, involving 1,009 American participants, supports BlackRock’s observations. The survey found that 34% of Gen Z respondents favored cryptocurrencies over cash, marking the highest rate among all age groups.

Furthermore, Stilt, a provider of financial products for immigrants, states that individuals from the Gen Z and Millennial demographics account for nearly 94% of all crypto buyers, leaving just over 6% for those aged 40 and above.

When examining specific demographics, Gen Z buyers outnumber Gen X by a factor of 3.5 and Baby Boomers by 14.3. In contrast, Millennials surpass Gen X by 15.5 times and Boomers by 62.9 times, demonstrating that the crypto landscape is predominantly shaped by younger generations.

Other macroeconomic factors, including concerns over inflation, “global political division,” and the ongoing digital transformation in the banking sector, have also contributed to the accelerated popularity of BTC and cryptocurrencies in general.

Is there a golden era for crypto adoption on the horizon?

Analyzed by BlackRock analysts, future projections for the crypto industry suggest a strong upward momentum. As per Galaxy, it is anticipated that U.S. spot Bitcoin exchange-traded products (ETPs) could exceed $250 billion in assets under management by 2025, indicating robust institutional investment.

The crypto market boom is also seen as attributed to President-Elect Donald Trump, who was named Time’s Person of the Year for 2024.

As reported by the Washington Post, it is expected that Trump will issue executive orders on his first day in office that will address cryptocurrency matters. The former president has been a vocal advocate for the crypto sector, and his influence may reverberate throughout the industry.

In what is seen as a significant victory, Coinbase partially prevailed in its case against the U.S. Securities and Exchange Commission after a court ruling on January 14 deemed the SEC’s dismissal of its 2022 petition regarding crypto regulations as “arbitrary and capricious,” thereby compelling the agency to clarify its position.

This incremental success for the burgeoning crypto industry may indicate that regulatory constraints could gradually ease, fostering further mainstream adoption moving forward.