Adoption rates for digital currencies are at an all-time high, outperforming mobile phone and Internet adoption figures by a country mile.
According to a new BlackRock report, global digital asset users have surpassed 300 million and show little to no signs of slowing down. The report states that the technology’s meteoric rise to mainstream acceptance has outpaced the adoption rates of other emerging technologies since the turn of the century.
Available data indicates that it took mobile phones 21 years to rack up 300 million users while the Internet reached the same number in 15 years. Launched in 2009, digital currency users surpassed 300 million in 12 years, a feat driven by a string of factors not limited to cross-border transactions.
The report highlighted several demographic patterns with digital asset adoption rates, noting that Gen Z and younger Millennials are likelier to adopt the asset class. BlackRock’s analysts argue that GenX and Baby Boomers are at the lower end of the spectrum in terms of digital currency adoption.
Macroeconomic trends have also contributed to the soaring adoption rates for digital assets, with investors pointing to inflation and a string of financial ecosystem concerns as reasons for their popularity.
“Certain trends such as inflation fears, global political division, and banking and fiscal concerns have increased bitcoin’s resonance as a decentralized asset,” read the report.
The growing digitization of finance is also considered a “needle-moving” trend for digital assets, underscored by traditional financial institutions turning their sights toward the asset class. A number of investment banks are testing the waters with blockchain technology for settlements, while others are leaning on stablecoins for cross-border transactions.
By regional distribution, Asia and Africa have topped the charts for digital asset adoption levels in recent years, outperforming North America and Europe. While speculative use cases continue to dominate utility, there is a growing trend of enterprise and institutional adoption for digital currencies and the underlying technology.
Ramping up adoption levels
BlackRock is eyeing a “golden age” for digital currency adoption, flowing from the approval of exchange-traded funds (ETFs) in the United States and other jurisdictions. The investment giant has since rolled out the iShares BTC ETF (IBIT), designed to “make exposure to bitcoin easier.”
Investors can access exposure via traditional brokerage accounts while eliminating the complex procedures of opening new accounts at digital currency exchanges. With a total market capitalization of around $3 trillion, experts predict a spike in asset valuation in the coming years as mainstream investors flock into the ecosystem.
Apple malware causes chaos
In other news, an Apple (NASDAQ: AAPL) security researcher has disclosed that reports of new MacOS malware may have been overblown in recent weeks, sparking unjustified fears among device users.
DoubleYou CEO Patrick Wardle disclosed that the new malware strain did not pose a direct threat to Apple users’ digital currency wallets, noting that media hype may be behind the frenzy.
The malware, dubbed Banshee, came to the limelight last week following a detailed report by cybersecurity firm Check Point. Although Check Point’s report did not contain streaks of sensationalism and stuck to the technicals, mainstream media reporting appears to have stoked the embers of dire “dangers to users.”
Both Forbes and the New York Post warned users of “real and present dangers” associated with Banshee, adding that the malware may adversely affect nearly 100 million Apple users.
According to Check Point’s original report, Banshee operates as a “stealer-as-a-service” malware with a focus on digital asset wallets and browser details. While seemingly operating as a standard run-in-the-mill malware, Banshee goes on to mimic Apple’s encryption algorithm.
The clever mimicry of XProtect allowed the malware to go undetected for nearly two months after a series of updates, allowing it to evade standard security tools. Banshee’s primary modus operandi revolved around hostile GitHub repositories and phishing platforms.
Despite the impressive security evasion techniques employed by Banshee creators, Wardle says the malware lacked the advanced theft capabilities required to pose significant threats.
“XOR is the most basic type of obfuscation,” said Wardle. “The fact that Banshee used the same approach as Apple’s is irrelevant.”
The former National Security Agency (NSA) official argued that new macOS versions offer advanced protection from Banshee and other malware of the same mold. He argues that there is “essentially no risk” to Mac users, adding that misinformation by mainstream media can trigger an effect of fear.
Tightening the screws
While digital currency scams have reached an all-time high in recent years, Wardle strongly advocates basic security practices rather than combating specific malware types. By adopting a fundamentalist approach, users can have a first line of defense against zero-day exploits and other dire threats.
The introduction of artificial intelligence (AI)-based systems is also expected to stifle the operations of bad actors in the digital currency ecosystem. As security standards teeter toward their pinnacle, there are grave concerns about a hard tradeoff between usability and the protection of assets, particularly with decentralized finance (DeFi).
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Wahid Pessarlay