Since the creation of bitcoin 14 years ago, cryptocurrencies have been gaining popularity and market share. Currently there are thousands of digital currencies that can be purchased on the market. And in Mexico there are approximately 12 million people, that is, one in 10, who already have at least one in their possession, the most popular being bitcoin.
Mexico ranks 15th out of 26 countries for digital currency adoption, according to Finder’s August 2022 Cryptocurrency Adoption report, which surveyed 217,947 people in 26 countries.
In its report, the firm highlights that among the most popular among Mexicans are bitcoin, with a 20% market share (the world average is 37%); followed by ethereum, with 14%; cardano, with 14%; the dogecoin, in 12% and the other 54% are distributed among more than 10,000 varieties of cryptocurrencies that exist in the market.
In Mexico, the crypto ownership rate is 13% of the total population, which means that it is 200 basis points lower than the world average, which is 15%. India leads the list with 29%, while Germany is in last place with 6%.
One of the reasons behind this level of adoption in the country may be due to the rootedness that the population has with cash.
Estefano Debernardi, Director of Business Development at Coinspaid, is surprised by the amount of cash handled in Mexico compared to other countries in the region, as it implies that people still trust cash.
“There should be a type of incentive for education, a subsidy so that transactions are digitized so that people have a push to use them and enter this world, as well as an interest in having a regulation. I think that having so much trade with the United States is going to be inevitable that there will be pressure to have to evolve towards that path,” said Debernardi.
In recent years, Latin America has taken the lead on the issue of regulation; however, in Mexico, they are not regulated, although their use is not illegal, according to the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
In Mexico, people between the ages of 18 and 34 lead the use of cryptocurrencies, since they are 46% of the owners. While people over the age of 55 are the group least likely to be adopted as they only make up 24% of crypto owners.
This is how bitcoin goes
The bitcoin price hovers around $19,110, down 59% so far this year and down 72% from its record high in November.
Despite the instability surrounding digital currencies, CoinsPaid, the Estonian company responsible for processing roughly 8% of the world’s global on-chain bitcoin transactions, believes that the crypto winter should not affect their adoption.
The fall in cryptocurrencies is mainly due to “persistently high inflation in major industrialized economies. Rising consumer prices are pushing central banks to raise interest rates to levels not seen in many years,” OctaFX analysts said.
Rising interest rates hurt the allure of all cryptocurrencies as they increase the opportunity cost of holding non-yielding assets. Also, given how indebted many households are, higher interest rates and mortgages deter consumers from spending in general, not to mention investing in risky assets.
Analysts at OctaFX noted that at the moment, bitcoin is a clear seller’s market and only a solid rise above $21,500 will invalidate the downtrend.