According to the survey, people consider cryptocurrencies to be good value preservers if they live in countries where the domestic currency has suffered from high inflation.
Nearly half of the people who own cryptocurrencies in the United States, Latin America and the Asia-Pacific region have acquired their first crypto holdings in 2021, according to a survey conducted by U.S. cryptocurrency broker Gemin. According to the news agency Reuters.
According to the survey, inflation in particular has increased interest in cryptocurrencies in countries where the currency has depreciated. The survey was answered by nearly 30,000 people in 20 countries and was conducted between November 2021 and February 2022.
According to the survey, cryptocurrencies are particularly popular in Brazil and Indonesia, where 41 percent of respondents say they own cryptocurrencies.
The share was 20 per cent in the United States and 18 per cent in the United Kingdom.
79 percent of cryptocurrency holders said they bought it because of its long-term investment potential.
Credit cryptocurrencies as a hedge against inflation seems to have depended on how the value of the respondent’s domestic currency had developed.
Only 16 percent of respondents in the U.S. and 15 percent in Europe agreed that cryptocurrencies protect against inflation.
In Indonesia and India, the share was as high as 64 percent. The Indian rupee has depreciated 17.5 percent against the dollar over the past five years, while the Indonesian rupiah has depreciated 50 percent against the dollar between 2011 and 2020, Reuters says.