Currently, only 4% of the global population owns Bitcoin (BTC), with the highest ownership concentration in the United States, where approximately 14% of people hold BTC.
As per a research report from River, a Bitcoin financial services firm, North America leads in adoption rates among both individuals and institutions. In contrast, Africa is lagging significantly, with just 1.6% of its population owning BTC.
Overall, Bitcoin’s adoption is generally more prevalent in developed areas compared to developing regions. River estimates that Bitcoin has reached only 3% of its maximum adoption potential, indicating that the digital currency is still in the nascent stages of global acceptance.
Bitcoin’s adoption path is still only at 3%. Source: River
The financial services company arrived at the 3% figure by evaluating Bitcoin’s total addressable market, which includes governments, corporations, and institutions — currently estimated at only 1%.
Additionally, River considered institutional underallocation and individual ownership rates in calculating the 3% figure.
Despite Bitcoin’s evolution since its early days in the cypherpunk movement, leading to its recognition as a US government reserve asset, several challenges impede its widespread adoption globally.
Estimated Bitcoin ownership by geographic region. Source: River
Related: Bitcoin risks weekly close below $82K on US BTC reserve disappointment
What’s hindering mass adoption?
Bitcoin sits at the intersection of technology and finance — two complex areas that pose a challenge on their own, let alone when combined.
The primary obstacle hindering Bitcoin’s mass adoption is a deficiency in financial and technical education, which perpetuates misconceptions about BTC — portraying it as a scam or Ponzi scheme.
Furthermore, digital assets are known for their significant volatility — favorable for short-term traders but problematic for anyone looking to use BTC as a medium of exchange or a stable store of value.
A 2023 report from Chainalysis revealed that stablecoins were the most widely transferred digital asset in Latin American countries. Source: Chainalysis
The extreme volatility disproportionately impacts residents of developing economies, who often turn to US dollar stablecoins as a digital store of value due to their lower transaction fees and relative stability compared to other cryptocurrencies.
During the recent White House Crypto Summit on March 7, US 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.
Magazine: Bitcoin payments are being undermined by centralized stablecoins
