A recent analysis by the Boston Consulting Group (BCG) predicted that by 2030 there could be up to one billion Bitcoin users worldwide. The crypto industry is still in the early stages of the adoption curve, according to the joint report by BCG, Bitget, and Foresight Ventures.
According to the report, just 0.3% of personal wealth is invested in cryptocurrencies, compared to 25% in stocks. He however mentioned that the relatively low penetration just shows that there is an opportunity for expansion. This is in line with the conclusions of a study published by the American bank Wells Fargo.
The bank’s global investment strategy team had stated in its research titled Understanding Cryptocurrency that the industry was in its “period of hyper-adoption” and compared the current stage of cryptocurrency to that of the internet in the mid to late 1990s.
BCG’s analysis extended the Wells Fargo paper’s comparison of cryptocurrency to earlier stages of the internet as well as the impending digital revolution known as Web 3.0. There is still plenty of room for development, according to the report.
“If we use the number of cryptocurrency holders as a proxy for Web 3 users and compare it to the adoption rate of Internet users in the 1990s, the total number of crypto users should exceed 1 billion by 2030,” the report said. , however, adding that it is difficult to estimate whether the trend of cryptocurrency acceptance will continue.
Crypto Native funds are growing rapidly.
The BCG analysis said retail investors are still the top Bitcoin holders, while hedge funds and venture capitalists are among institutional crypto investors, adding that these participants nearly “doubled their exposure to $70 billion. from the fourth quarter of 2020 to the end of 2021″.
The research further indicated that “benefits will continue to increase”. Additionally, the document mentions “an emerging class of native crypto funds that are accelerating the pace of finance, such as Paradigm and Hashed.”
These VCs, however, are the ones who bore the brunt of the Terra-Luna debacle, he added.
The BCG report further states that early-stage South Korean VC Hashed ranked among the world’s most financially distressed VCs. According to CoinMarketCap stats from April, the Black Swan incident cost the Hashed Wallet over $3.5 billion.