The Rise and Stall of Cryptocurrency Adoption: A Sobering Reality Check
The craze that swept the nation over the past few years has slammed to a halt. A new survey reveals that cryptocurrency ownership rates flattened in 2022 after doubling annually in the previous two years. Experts suggest this signals an end to the "get rich quick" mentality that fueled the crypto boom.
In this article, we'll cover the key survey findings, expert analysis on why crypto adoption stalled, predictions for the future, parallels to past speculative bubbles, and answers to common questions around crypto's plateau.
Crypto Ownership Peaks at 10% as Prices Crash
Cryptocurrency ownership among US adults surged from 3% in 2018 to 10% by the end of 2021. But in 2022, that growth screeched to a stop, staying flat at 10% amid plunging crypto prices.
Bitcoin, the flagship cryptocurrency, sank from an all-time high of $67,617 in November 2021 to just $16,604 by the end of 2022. Overall, the crypto market cap cratered from nearly $3 trillion to below $1 trillion last year.
This boom and bust has all the hallmarks of a speculative bubble fueled by FOMO - fear of missing out. Researchers suggest crypto prices became detached from fundamentals as new investors poured in, hoping to strike it rich.
