Only 4% Of The World's Population Owns Bitcoin, As Adoption Faces Multiple Roadblocks

While crypto lovers would like to believe that Bitcoin is the currency of tomorrow, but it seems like the majority of the world is not sharing the same sentiment.

According to a research report from River, a Bitcoin financial services company, only 4% of the world's population currently holds BTC, mainly concentrated in the United States with 14% adoption.

The report also revealed that North America leads BTC adoption among both individuals and institutions; in contrast, Africa has the lowest adoption rate, with just 1.6% of its population owning Bitcoin.

River’s research suggests that Bitcoin has only reached 3% of its maximum adoption potential, reinforcing the notion that the digital asset is still in its early stages of global penetration.

This figure was calculated by analyzing Bitcoin’s total addressable market, which includes governments, corporations, and institutions—currently accounting for only 1% of BTC’s full potential. The firm also factored in institutional underallocation and individual ownership rates to arrive at the 3% metric.

In essence, the adoption of Bitcoin today is where online banking was in 1996 and social networks in 2005. So if you think you're late to Bitcoin, you're not.

While Bitcoin has progressed far beyond its early cypherpunk roots—recently becoming a recognized U.S. government reserve asset—this situation highlights that the path to massive adoption is still fraught with obstacles, particularly due to technical complexity and persistent negative perceptions.

The first of the many roadblocks that Bitcoin faces is the lack of financial and technical education. As such, Bitcoin is still commonly misunderstood as something of a scam or a Ponzi scheme due to the misinformation.

Another factor that is deterring people from Bitcoin adoption is the volatility of Bitcoin. While the volatile price of Bitcoin makes it an attractive commodity for traders, but it also makes it difficult to be used as a stable medium of exchange or something valuable that people can store in their reserves.

The level of adoption of Bitcoin also depends on factors such as the level of technological advancement in the country. However, initiatives are emerging to reverse the trend. For example, El Salvador has recently tried increasing the growth of Lightning Networks in the country, a second-layer solution aimed at improving Bitcoin's stability, especially in regions where financial infrastructures are weak.

Because of all the different roadblock developing countries are facing-be it the lack of technology or the volatility of the cryptocurrency-many developing economies has chosen stablecoins pegged to the U.S dollar over BTC as it offers greater price stability.

A 2023 report by Chainalysis revealed that stablecoins are the most widely transferred digital assets in many Latin American countries, as they provide lower transaction fees and greater stability compared to Bitcoin.

During the White House Crypto Summit on March 7, U.S. Treasury Secretary Scott Bessent emphasized that stablecoins will play a critical role in preserving U.S. dollar hegemony and reinforcing its status as the global reserve currency.

With Bitcoin adoption still in its infancy, it remains to be seen whether BTC can overcome its challenges and achieve true mainstream acceptance—or if stablecoins will continue to dominate as the preferred digital asset for financial transactions worldwide.