Does the ADAN/KPMG report confirm Les Bulots’ analysis?

On February 14, 2022, ADAN (l’Association pour le Développement des Actifs Numériques) published a study based on a sample of 2003 people over the age of 18. What’s interesting about this study for us Bulot investors is that it analyzes the level of adoption of Cryptos among the French.

Remember what I explain in the Crypto Bulot training course… Long-term growth is based on the crypto adoption curve. And if we’re at the beginning of this adoption curve (which means that the majority of users are still to come), this means that we’re going to benefit from the structural growth of the market, which will be driven by an ever-increasing number of buyers and the massive injection of capital into the market.

So let’s see if this study is in line with the training demonstration or if, on the contrary, the reality is quite different?

French people’s level of knowledge about Cryptos

To begin with, it is mentioned that 76% of French people have already heard of Cryptos, which corresponds to a very large majority of French people in an investment dynamic (whose age is under 60, as we know that beyond this age, we are more inclined to unburden ourselves of asset constraints).
This is a very good thing, as it means that the Crypto market has excellent media coverage.

The % of French people who have already invested in cryptos

The survey then provides the level of adoption of Cryptos. It shows that:
8% of French people have already invested in cryptos
29% of French people intend to invest soon
39% have never invested and do not intend to do so
and 24% have never heard of cryptos

Now we need to compare these figures with the adoption curve…

We can conservatively consider that the 8% who have already invested correspond to the 16% of the curve that groups together “Innovators” and “Early Adopters”.
If we keep the same ratio as the curve, the early majority will represent 17% of the French population (if 8% corresponds to 16% on the curve, then 17% corresponds to the 34% share of the early majority).
This means that 17% of the 29% who are thinking of investing will do so soon, followed by 17% of the late majority (made up of the remaining 12% and 5% of the uninterested who will rally to the wisdom of the crowds). This leaves a mass of 8% who will join the group late.

On this assumption, we will arrive at an adoption of cryptos (for its speculative use) for 50% of the population within a few years, which seems quite plausible!
On the French market, we can therefore estimate that within a few years the number of investors will have multiplied by 6.25!!!! This represents a massive inflow of capital that will drive the market structurally higher!

It is also mentioned (p22) that “.Among the 8% of crypto holders, almost two-thirds (61%) started less than 3 years ago, notably in 2019 after the crash of 2018, and during the confinement of 2020. This is therefore a sustainable trend in France over the past 3 years. “

With a projection for the end of 2022 which explains that“Based on conservative assumptions regarding the realization of intentions on the part of French people who are considering acquiring cryptos this year, the base of 8% of French people who have already invested in 2021 could rise to 12 or 13% by the end of 2022“.

This confirms once again that we are well into the early majority, with acceleration to be expected over the coming months and years.

How old are crypto investors?

Having studied the level of adoption, it is interesting to understand the dynamics of this adoption as a function of demographics.

On this subject, it is mentioned (p23) that “.more than one in eight French people under the age of 35 (12%) own cryptos. This figure is extremely high; it’s almost double the proportion of this age group in the general population (from 25% of the population to 46% of crypto owners). This generation gap suggests that the number of French people owning cryptos is set to increase drastically over the years. “

Prospects for intergenerational transfers

If we add to the fact that the crypto investor population is young, that this same generation will be inheriting massively in the coming years (due to the approach of the papy-boom age corresponding to life expectancy), we understand that the market will benefit from a massive influx of money over the next few years and decades.

On this subject, the report concludes that“this generational transfer could constitute a structuring movement for the next 30 years.”

What motivates French people to invest in cryptos?

To find out whether the crypto market is just a fad or an underlying trend, it’s important to understand what motivates the French to invest in Cryptos…

On this subject, the report highlights that:
– 60% are looking for yield
– 38% are looking for a long-term investment
– 22% wish to protect themselves against inflation (which is understandable at a time when inflation is close to 3%, while the Livret A savings account is stagnating at 0.5% with a projected increase to 1%).

And when asked specifically, 58% of the French believe that cryptos can be a safe haven against inflation.
Cryptos are therefore not confined to speculative use… The French do see them as a safe haven (as gold once was).

Other reasons that stand out are :

– Lack of trust in banks, for 12%;
– The desire for transaction confidentiality, for 10%;
– An ideological choice of adherence, qualifying these assets as “currencies”, for 7%;
– To send money abroad, for 2%.

The emerging adoption curve…

In the Crypto Bulot training course, we talk about 2 adoption curves concerning cryptos… That of the adoption of Cryptos as a speculative investment tool: that’s what we’ve just been talking about for the most part. But there’s also an adoption curve for uses of blockchain technology.

On this subject, we can see that we’re still in the Innovators’ section.
For example, only 2% use cryptos to send money and 2% have bought NFTs… So we’re still at around 2% use of the technology itself.

This adoption is going to take much longer to really take off, and it is likely to go through a period of disillusionment (The collective hysteria that is currently setting the net ablaze about NFTs strongly foreshadows this, with in particular the 1st report on TF1’s 8 o’clock news giving the feeling of being back in 2017 during the euphoria around cryptos).

In a nutshell…

In summary, this report confirms the underlying trend presented in the Crypto Bulot training course. The current level of adoption of the French market and its speed of progression show that we are at the beginning of the early majority on the adoption of cryptos as an investment medium.

The report also gives a glimpse of the prospects for adoption of blockchain technologies, proving that there will indeed be 2 phases of adoption, and that the market will reach cruising speed when the majority (Early and Late) have adopted the use of the technology.

This report can only reinforce our belief that the market will be structurally bullish in the years to come, as the mass of buyers will outnumber the current number of sellers, and a massive injection of liquidity will follow.

It’s the perfect time to enter the crypto market and take advantage of a strategy like Crypto Bulot, so you don’t have to do anything except wait quietly (like the bulot) for your capital to grow over the coming months and years!