Cryptocurrencies and Digital Ledger Technologies (DLT) have become topics nearly impossible to measure. Innovations come hourly, as do the challenges. Cryptocurrencies that were once derided as at best a fad, or at worse a scam or way to launder money, have become a legitimate asset class reaching three trillion dollars in 2021. A few highlights from 2021: • Consumer adoption of crypto as an investment somewhere between 25-30% of adults represents 2.5% of the $120 Trillion Global Equity market. • Institutional investment in crypto has increased exponentially, with more than 50 U.S. companies holding crypto on their balance sheets and even more accepting crypto as a means of payment (including over 40 million PayPal merchants). • Companies like Flexa have emerged that allow spending crypto at the point of sale, completely bypassing the traditional network rails – with potentially significant impacts on merchant fees and interchange. • Venture capitalists have invested $30 billion into crypto startups this year – more funding than the sector has received every other year combined (the previous high was $8 billion in 2018). “Investors are funding anything and everything” crypto-related, according to PitchBook analyst Rob Le. Looking Back on 2021: The Year of Cryptocurrency and DLTs By Larry Pruss SRM (Strategic Resource Management) coloradobankers.org 4
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