Definition Of Adoption Curve In Cryptocurrency

by

Definition Of Adoption Curve In Cryptocurrency. Adoption curves are an illustration of the stages showing the adoption growth of technological innovation in a market. When something new comes into the market either a new model of phone product or a car or a new technological tool/concept entirely, it is not generally adopted at once, firstly only a few people give it a try before getting to the poor masses. Definition Of Adoption Curve In Cryptocurrency. How To Measure Crypto Adoption, 5 Phases Of The Adoption Curve


Using mobile phones as an example: as the rate of phone uses grew, the support of 
network for them also grew. As the adoption by more people began, each 
generation of adopters paved the way for the next one to make the technology 
better. This adoption process can be noted across a wide range of markets where different 
sectors of a market come with a new product or technology on board at different 
stages and for different reasons.
An excellent example of the adoption curve is Blockchain technology. Secured chains of blocks cryptographically were introduced in the early 1990s, but it was in 2008 when Satoshi Nakamoto released a whitepaper that established the model for a blockchain. The first genesis chain was mined in 2009.  Ever since then It has slowly begun its adoption and today, more than 80% of total Bitcoin has been mined and more than 5,000 cryptocurrencies have been launched on the blockchains following the launch of the inaugural BTC.

How Fast Is Crypto Adoption Gaining


A Deep Dive Into Its Adoption Curve:

This shows that all witnessed crypto headlines got hot and cold between the year 2017-and 2019, and back hot again within the years 2020-and 2021. But how many of these headlines have led to real crypto adoption? This is a conversation worth having, especially as the industry seeks to move forward by attracting even a lot of people to the world of cryptocurrencies,  Defi, NFTs, and the Metaverse. But how we could measure crypto adoption is another challenge.  

How To Measure Crypto Adoption

Measuring crypto adoption occurs in many ways, but at the end of the day, it requires getting more people by referring them to buy cryptocurrencies, investing in them, and using them more

frequently in creative ways in their daily lives.  After the increase in crypto adoption rate in recent years, it still remains unclear. For example, beyond assets to invest in, increased crypto adoption could be e-commerce giants like Amazon and Walmart adding Bitcoin payment options to their shopping carts, this could be employers paying salaries in cryptocurrencies, paying their households bills with crypto, or receiving government stimulus or other benefits in cryptocurrencies. For cryptocurrencies, there are numerous touchpoints to insert themselves into the real economy.

Two recent reports were released by Crypto data and research intelligence firm Chainalysis that have detailed global Defi and crypto adoption. Their bottom line was clear and straightforward, adoption is increasing dramatically after a year of huge growth for cryptocurrency markets and more industry attention, with no signs of slowing down.

Definition Of An Adoption Curve (S CURVE)


This is defined as the cumulative rate in which a population adopts a product, service, or technology over time in every new product category and technology has an adoption curve. 

An adoption curve, also known as an S curve, is made up of five different segments of adopters based on their ability to “adopt” new products and technologies.

5 Phases Of The Adoption Curve

The five stages of the adoption curve are:

  • Innovators
  • Early Adopters
  • Early Majority 
  • Late Majority 
  • Laggards

The Breakthrough technologies often follow this S type or Adoptioncurve.


How Does The Cryptocurrency Adoption Curve Stack Up

Right now it seems as if cryptocurrencies are somewhere in between the Early Adoption sections and innovators. In the year 2013, the number number of cryptocurrencies was 66. But by the year 2021, the number stood at about 6,044 which was an increase of 9,000%. All this happened within the space of 10 years. However many crypto-asset users are now compared to five years ago. In the year 2016, about 5 million verified crypto users were identified worldwide. But, by 2020 that number increased to 101 million with an increase of 1,900%. These numbers are staggering, but still only a fraction of the total population. This is the reason why the technology itself and the crypto adoption rate divided by the population are still low. Therefore remaining in the Innovator and Early Adopters segments.

Definition Of Adoption Curve In Cryptocurrency

Over time due to competition and natural market forces, the number of cryptocurrencies themselves will decrease. But still, the number of cryptocurrency users and adopters will likely

increase as the number of industries they impact increases.

Crypto In Different Countries 

Referencing the Statists Global consumers survey, which drew personal feedback from the crypto worldwide consumers regarding the above question. They found out that Nigeria Nationals were the most likely to say they are the owners or users of cryptocurrency. Whereas Second, third, fourth, and fifth on their list were Vietnam, Philippines, Turkey, and Peru. None of these countries interestingly are among the world leaders in GDP. However, they reflect and represent the interests of the emerging crypto market.

Comparison Between Adoption Curve Crypto And Traditional Modern Inventions

Coming to an understanding of the basic logic of the adoption curve. And where the cryptocurrency falls, it’s important to ask these questions: how long will it take for the Tv, the 
The cell phone, the Internet, electricity, airplanes, and also the automobile go from invention 
to substantial societal penetration? The answer to the above questions gives us a reference 
on how we could grade and assess the rate at which cryptocurrency proliferates . Throughout the economy and down to the households compared to electricity, airplanes, cellphones, and the automobile, the Internet’s adoption curve was much more rapid and steep. Likewise, the Bitcoin adoption curve has been even.

Difference Between Bitcoin Adoption And The Internet

A lot of financial analysts including crypto writers continually make references. That Bitcoin adoption follows closely the speed at which the Internet was adopted and this is quite correct. The best metric for analyzing crypto users is through them having a verified identity. And a registered account at the centralized crypto exchanges is an important aspect to note. Also, the numbers of accounts need to be adjusted accordingly for over. And underestimation because not every crypto user has an account exchange.

On The S Curve, Where Is Bitcoin? 

Bitcoin Adoption is in its early Majority. It is an aggressive estimate and many people are still saying it. We are still at the earlier stage in the game. Despite this, about 40% of the global population is still offline. And about 1.7 billion adults do not bank, resulting . Bitcoin has a long way to go in other to reach those who are offline. And those who do not have the opportunity to access modern-day banking services let alone crypto. The future of global Bitcoin adoption remains dependent. On whether the internet can reach those individuals or not through the use of cellphones or the internet.

What Is The Adoption Rate Of Bitcoin By Country? 

There is no perfect measurement of a country’s populace and their exact Bitcoin usage. This is a result of the decentralizing nature of Bitcoin. This is the reason why many countries are 
now going after crypto, attempting to establish legislation to govern the use of cryptocurrencies. Attach them to people’s identities through KYC. Based on searches carried out on Google, Africa. And Latin American consumers made up eight of the top 10 countries with the most Bitcoin interest in 2020. This study was carried out before the rise in Bitcoin price and market cap rose before the end of 2020. And early 2021. The united states where the most dominant in the trading volume on online exchanges worldwide in 2020. They traded over $1.5 billion dollars into Bitcoin. While Russia in second place traded $420 million dollars in the Bitcoin trading volume. The third was Nigeria with $400 million, fourth, was the rest of Europe with $204 million. Fifth, China with $198 million, and finally. The sixth was the UK which traded with $193 million.


Investors Around The Crypto Globe


The united states with regards to the country which made the most money from Bitcoin. In the year 2020 led again the way with $4.1 billion dollars in earnings. The second been 

With regards to which country’s investors made the most money from Bitcoin in 2020. The second was China-led with $1.1 billion. The third was Japan with $900 million, and the fourth was the UK with $800 million. And the fifth was Russia with $600 million. The countries which make the most money from crypto trading can give us an estimate of the most influential traders. And the places traders make the most profit. The investor’s attitudes toward Bitcoin could be reflected in those places.

The Adoption Rate Of Crypto By Country

The countries which have the most crypto ATMs adoption could be measured by Bitcoin’s adoption rate using the last figures. A crypto ATM by definition allows a person to purchase 
Bitcoin includes other cryptocurrencies by the use of cash or debit. This area is dominated by the United States, having about 17,436 crypto ATMs. The second place is Canada with about 1,464 crypto ATMs.

By this, the United States has an upper hand in terms of its readiness for crypto adoption. Likewise, Crypto ATMs will be one of the touch-points integrating the current banking and cash systems.

Innovation Adoption Curve 

By definition of innovation, adoption curves are used to classify the entry of the users into various categories. Based on their readiness to accept new ideas or technology. It aids in breaking down or separating consumers into five different segments. Which are innovators, early adopters, early majority, late majority, and lastly laggards.

These innovation adoption curves follow a bell-shaped curve which is divided into five categories. The first to adopt the new idea or technology were the innovators. Which consists of about 2.5% population, that are young and willing to take risks on the new technology.

Definition Of Adoption Curve In Cryptocurrency

The early adopter which is the next consist of almost 13.5%. The young individual has a high degree of leadership or influence power, willing to take extra risks.

The third category is the Early Majority with about 34% individuals. Which is higher than that of innovators and the early Majority having. A slightly longer time of adoption They also have an 
above-average on social status, and accept change more quickly than the average.

Definition Of Adoption Curve In Cryptocurrency

The late Majority which is the fourth category involves an individual. Who takes a lot of time to adapt to the new technology. If skeptical of innovation, they carry out research. Because of peer group pressure, they adopted the new technology.
And lastly, the laggards which are the fifth category feel reluctant toward any change. It might already become obsolete by the time laggards adopting the new technology. They fix on the past methods or technology for their daily usage.


Conclusion

Worldwide, the crypto adoption rate is on the increasing side. The popularity of Bitcoin in particular is increasing immensely. Most importantly, crypto adoption is not happening in any one country. The region or socioeconomic group is through the increased engagement and growth in emerging markets’ attitudes towards cryptocurrencies and Bitcoin. However, a more developed financial and banking system will advance the economy with high PPPs. And income leading the way forward. Nevertheless, greater cryptocurrency and Bitcoin adoption will not be without headwinds. As regulatory oversight and aggressive lawmakers seeking to reign the industry. By creating CBDCs and attaching identities to crypto investors.

Definition Of Adoption Curve In Cryptocurrency

 see the list of things to also learn:

  1. Blockchain Technology
  2. Defi
  3. NFTs
  4. DAOs
  5. Crypto
  6. Web 3.0
  7. Altcoin Tokenomics
  8. Metaverse
  9. Smart Contracts

Related Content

Leave a Comment

en English
af Afrikaanssq Albanianam Amharicar Arabichy Armenianaz Azerbaijanieu Basquebe Belarusianbn Bengalibs Bosnianbg Bulgarianca Catalanceb Cebuanony Chichewazh-CN Chinese (Simplified)zh-TW Chinese (Traditional)co Corsicanhr Croatiancs Czechda Danishnl Dutchen Englisheo Esperantoet Estoniantl Filipinofi Finnishfr Frenchfy Frisiangl Galicianka Georgiande Germanel Greekgu Gujaratiht Haitian Creoleha Hausahaw Hawaiianiw Hebrewhi Hindihmn Hmonghu Hungarianis Icelandicig Igboid Indonesianga Irishit Italianja Japanesejw Javanesekn Kannadakk Kazakhkm Khmerko Koreanku Kurdish (Kurmanji)ky Kyrgyzlo Laola Latinlv Latvianlt Lithuanianlb Luxembourgishmk Macedonianmg Malagasyms Malayml Malayalammt Maltesemi Maorimr Marathimn Mongolianmy Myanmar (Burmese)ne Nepalino Norwegianps Pashtofa Persianpl Polishpt Portuguesepa Punjabiro Romanianru Russiansm Samoangd Scottish Gaelicsr Serbianst Sesothosn Shonasd Sindhisi Sinhalask Slovaksl Slovenianso Somalies Spanishsu Sudanesesw Swahilisv Swedishtg Tajikta Tamilte Teluguth Thaitr Turkishuk Ukrainianur Urduuz Uzbekvi Vietnamesecy Welshxh Xhosayi Yiddishyo Yorubazu Zulu