Cryptocurrency businesses are celebrating a historic milestone for Bitcoin as the asset exceeded $22k for the first time in history this morning.
Although many commentators attribute the cryptocurrency’s year-long rally to an increasing popularity with institutional investors, there is also evidence of growing popularity and usage at a mass consumer level with the ground set for further growth in 2021.
Nick Jones, founder and CEO of Zumo, a UK-based crypto wallet and exchange platform, said: “The boom in cryptocurrencies goes beyond institutional investors and financial houses. As governments look to shore up their economies with cash injections, everyday investors are looking to assets like Bitcoin which is influenced by their trading activity and not a government’s. If the pound is devaluing, cryptocurrency looks like a safer bet and investors can see the reward.”
Between May and December 2020, the app recorded a 1300% growth in account sign-ups and a 900% increase in exchange volumes between August and December. The average size of an exchange to be conducted on the app is equivalent to £600.
Jones added: “What we are seeing is a normalisation of cryptocurrencies and a use of the blockchain to improve everyday financial services. From institutional investors adding their support to Bitcoin to today’s news that the Financial Conduct Authority will allow a Temporary Registration Regime for cryptoasset businesses, it is clear cryptocurrencies are gaining in the mainstream so their benefits can be shared with everyone.”