Professor Coin: What's Driving Cryptocurrency Adoption Around the World
Professor Andrew Urquhart discusses cryptocurrency adoption, highlighting its growth and significance in the financial system. The introduction of Bitcoin futures in 2017 and the Bitcoin spot ETF in January 2024 has attracted more investors. Blockchain technology is predicted to boost global GDP by $1.76 trillion by 2030, with countries like China prioritizing it. Research indicates that higher education, human development, democracy, regulatory quality, and GDP correlate with increased cryptocurrency adoption, while corruption and lack of economic freedom hinder it. Trust plays a crucial role; countries with higher trust levels show greater interest in cryptocurrencies. Gender differences exist in trust perceptions regarding regulation, with older individuals valuing social trust more. Distinctions between cryptocurrency and decentralized finance (DeFi) adoption are noted, with various factors influencing each. Early adopters drive cryptocurrency returns and price efficiency, while late adopters contribute to price noise. Overall, adoption varies globally, influenced by economic indicators and trust levels.
