The once fervent spirit of cryptocurrency enthusiasts in Canada seems to have notably cooled as 2022 witnessed a considerable decline in digital asset ownership. The culprits behind this drop are a myriad of factors ranging from regulatory uncertainty to the fear of looming digital scams, not to mention the less-than-pleasant market environment.
These revelations surfaced from the Bitcoin Omnibus Survey (BTCOS) by the Bank of Canada. A considerable pool of 4,996 participants contributed to the analysis that traced the country’s fading crypto trend. Most notably, Bitcoin (BTC) ownership fell by 10% in a year, a striking contrast to the bullish 13% increase in 2021. Such steep consequences followed the crash of the Terra network, an event which shook the crypto faith for many.
Nevertheless, the waning popularity of BTC does not infer a transition to alternate cryptocurrencies. The survey squashes any such assumptions, highlighting a simultaneous decline in altcoin ownership. However, exceptions to this trend emerged as Dogecoin (DOGE) popularity surged. The anticipated acquisition of Twitter by Elon Musk, and the eventual speculated DOGE integration on the platform, fueled this rise. Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash also experienced their moments in the spotlight.
2022 was indeed a harsh winter for digital asset markets. Bitcoin bore a hefty loss of over 55% in its market cap, even though the asset has been regaining some ground recently. To add to the climate, the market felt the tremors of some catastrophic crashes, like the one that dogged the Terra network and slashed an estimated $60 billion off it. Subsequent revelations about former FTX CEO Sam Bankman-Fried’s illicit activities hardly restored investor confidence.
Alongside these meltdowns, inadequate policy-making played its part in throwing the market into the woods. In these circumstances, digital asset regulators’ sluggishness led to a loosely applied existing law.
On a final note, the report presents an interesting spin on the usage of these digital assets. A majority of Canadians, it seems, are harnessing Bitcoin and other cryptocurrencies as investment vehicles, not mediums of exchange. An interesting anticipation is the adoption of Central Bank Digital Currencies (CBDCs) over private coins in the future, especially if Canadians limit or completely halt the use of cash, or if they widespreadly adopt private cryptocurrencies for payments.
Source: Cryptonews
