Bitcoin Ownership Remains Low at 4% Globally, Study Finds

Bitcoin, despite its growing recognition in financial markets, remains a niche asset with limited global adoption. According to a recent study by a BTC financial services firm, only 4% of the global population currently holds Bitcoin. This figure underscores the significant gap between Bitcoin's potential and its actual integration into the global economy.

The United States leads in Bitcoin ownership, with approximately 14% of individuals reported to have Bitcoin holdings. North America is highlighted as the region with the highest Bitcoin adoption, both among individuals and institutions. In contrast, Africa lags behind, with only 1.6% of the population holding BTC. This disparity suggests that Bitcoin adoption is closely tied to economic development, with wealthier regions showing higher rates of ownership.

The study estimates that Bitcoin has reached just 3% of its full adoption potential. This assessment is based on calculating Bitcoin’s total addressable market, which includes governments, corporations, and institutions—currently estimated at only 1% adoption. Institutional underallocation and low individual ownership rates contribute to the notion that Bitcoin still has a long way to go before achieving mass adoption.

Several barriers continue to hinder Bitcoin's widespread adoption. One of the biggest challenges is financial and technical literacy. A lack of understanding fuels misconceptions about Bitcoin, with some still considering it a scam or a Ponzi scheme. Additionally, Bitcoin’s price volatility poses a significant obstacle, making it unreliable as a medium of exchange or a store of value for many, particularly in developing economies. Instead, individuals in these regions increasingly turn to stablecoins like USDT for digital transactions due to their relative price stability and lower fees.

Despite its decentralized nature and limited supply, Bitcoin continues to trade like a risk asset, moving in tandem with equities rather than diverging as a safe haven. This correlation with traditional financial markets poses challenges to Bitcoin's narrative as a hedge against geopolitical and fiscal instability. For Bitcoin to establish itself as a true hedge against macroeconomic instability, it must break its correlation with U.S. equities and other risk assets. Currently, Bitcoin’s price movements are heavily influenced by investor sentiment in traditional markets, particularly the stock market.