Global Bitcoin Ownership Remains Limited Amid Adoption Challenges

According to Cointelegraph, only 4% of the global population currently holds Bitcoin (BTC), with the United States leading in ownership, where approximately 14% of individuals possess BTC. A research report from River, a BTC financial services company, highlights that North America has the highest adoption rate among individuals and institutions, while Africa has the lowest at 1.6%. The report indicates that BTC adoption is generally higher in developed regions compared to developing ones, estimating that Bitcoin has reached only 3% of its maximum adoption potential, suggesting that the digital currency is still in the early stages of global adoption. River calculated the 3% adoption figure by assessing Bitcoin's total addressable market, which includes governments, corporations, and institutions, at merely 1%. The company also considered institutional underallocation and individual ownership rates to arrive at this metric. Despite Bitcoin's progress since its inception, including its recent status as a US government reserve asset, several obstacles hinder its mass adoption globally. Bitcoin's position at the crossroads of technology and finance presents challenges, as both fields are complex individually and even more so when combined. The primary barrier to Bitcoin's widespread adoption is the lack of financial and technical education, which leads to misconceptions about BTC, such as beliefs that it is a scam or a Ponzi scheme. Additionally, digital assets are known for their high volatility, which benefits short-term traders but poses challenges for those using BTC as a medium of exchange or a store of value. A 2023 report from Chainalysis found that stablecoins were the most widely transferred digital asset in Latin American countries, as residents in developing economies prefer US dollar stablecoins for their low transaction fees and relative stability compared to other cryptocurrencies. During the recent White House Crypto Summit on March 7, United States Treasury Secretary Scott Bessent announced that the US will utilize stablecoins to maintain US dollar hegemony and safeguard its status as the global reserve currency. This move underscores the ongoing debate about the role of digital currencies in the global financial system and the challenges Bitcoin faces in achieving mass adoption.