According to a research by the crypto exchange Kucoin, more than half of the Brazil adult citizens believe that crypto will eventually take over as a store of value and a means of payment.
Brazil, the world’s sixth most populated country, has endured an economic downturn, with inflation more than tripling in the last year to 10% per year. Furthermore, a sizable proportion of people remain unbanked or underbanked, resulting in a sizable proportion of the population shifting to cryptocurrencies.
“Growing inflation in the country has forced 62% of Brazilian crypto investors to consider cryptocurrencies to be the “future of finance”, while 53% regard cryptocurrencies as a reliable way to store the value of their assets.”
According to the survey, 34.5 million Brazilians, or 26 percent of the population aged 18 to 60, had used cryptocurrencies in the last six months. One out of every six Brazilian crypto investors commits more than 90% of their investment portfolio to cryptocurrencies, with up to 75% of investors trading fiat for crypto each month.
In general, 64 percent of crypto investors in Brazil responded that they planned to raise their investments by 20 percent, indicating that they were thinking about investing in crypto.
The bulk of crypto investors in the South American country predict strong long-term gains from crypto, while others are just hoping to enhance their living standards. Around 36% use cryptocurrency to augment their other sources of income.
Nonetheless, despite the fact that crypto adoption has reached a tipping point in Brazil, the survey indicated that most crypto users require investing education. Three-thirds of those polled said they were unsure about market signals, and two-sevenths don’t grasp how cryptocurrency works.
With the crypto market capitalization expected to reach $3 trillion in 2021 after Bitcoin reached an all-time high of $68,000 in November, making it the top performing asset in the last decade, cryptos have seen a parabolic adoption rate, a trend that is expected to continue, particularly in light of the Russia/Ukraine conflict.
According to a Gemini survey, 41 percent of crypto owners worldwide made their first crypto purchase in 2021, with 54 percent of Brazilians purchasing their first coin last year.
As a result of the high demand for cryptocurrency in this Latin American country, several crypto exchanges, including Binance and Coinbase, are eyeing Brazil as a huge prize in 2022, with Dubai-based Bybit announcing its debut on Thursday, April 28.