The cryptocurrency market is experiencing a new round of growth. Marketing teams of numerous startups are trying to segment their audience, and financiers and researchers are increasingly asking questions: how many people own Bitcoin and other cryptocurrencies, what countries do they live in, how old are they, how much do they earn and how much are they willing to spend on a crypt?

After Bitcoin took off (EXANTE: Bitcoin) to $ 20,000 in December 2017, and then falling to $ 3,000, cryptocurrency lost most of its audience. In July 2018, only 9% of Europeans confirmed that they own digital assets.

Most crypto-enthusiasts (about 18%) were found in Turkey, while Luxembourg and Belgium were at the very end of the ranking. Things went even worse in the USA (8%) and Australia (7%). The past drop in prices may give new investors the opportunity to enter the market.

Study.

According to a study by the University of Cambridge from 2017, the most active cryptocurrency market is concentrated in the United States and China. For more than two years, the situation has changed slightly.

11% of Americans have bitcoins, and their level of awareness of the cryptocurrency industry has grown many times, despite the 2017 bull market and the 2018 bear market, said Blockchain Capital’s general partner Spencer Bogart, referring to the results of a survey in the United States in April of the year.

In December 2018, nearly 32 million bitcoin wallets were created worldwide. However, since the majority of users use several such services to store cryptocurrency, the total number of users of digital assets should be less than 32 million, Statista analysts say.

Comparing this figure with the population of the world, the researchers came to the conclusion that less than 0.4% of the world’s inhabitants are involved in the circulation of cryptocurrencies. At the same time, analysts identify a number of criteria that should be taken into account when evaluating users of cryptocurrencies and products based on the blockchain technology:

  • Awareness;
  • Acquaintance;
  • Perception;
  • Conviction;
  • Propensity to purchase.

A significant part of about 32 million addresses of Bitcoin wallets is not used, at the same time, it is fair to assume that many have several purses at once. Given the limited data, it can be assumed that the number of users of the largest cryptocurrency reaches 25 million.

Geography.

Here the trends are unchanged. Cryptocurrencies are actively interested in the United States and China. They are catching up with the UK and a number of countries that in the traditional economy are called “developing”.

Maps of places where cryptocurrencies are accepted or used reflect two bright spots – the United States and the European Union. In the last year, the audience of users of digital assets and blockchain is actively expanding in a number of developing countries, especially in Latin America. Bitcoin adoption is expanding in politically unstable Venezuela and in its more developed neighbors – Brazil and Colombia.

In 2019, more and more young Africans are trying to use bitcoin and cryptocurrency as a source of income. According to Google Trends, South Africa, Ghana and Nigeria are among the top five countries in which bitcoin has become the most popular search query.

The surge of interest in cryptoactive assets both in Venezuela and in African countries is largely due to the instability of national currencies. Last year, Bloomberg wrote about how cryptocurrency takes over some of the functions of monetary circulation in these regions.

Some states deliberately seek to diversify their not very strong economies, adopting legislation on regulation of cryptocurrencies and blockchain spheres, thereby attracting investors and startups from around the world. This, in particular, Malta, Belize, Seychelles and a number of other territories.

 

Demography.

20% of US citizens aged 18–34 years old, 11% of 35–44 year olds, 5% of 45–64 year olds and only 2% of people over 65 years old invest in cryptoactivities. The total number of Americans who show interest in cryptocurrencies and blockchain is estimated at 16-26 million people – with a total population of 333 million.

In Europe, these are most common in Turkey (18%) and Eastern European countries – Romania (12%) and Poland (11%). In Western Europe, Spaniards are most interested in cryptocurrency (10%), while in France, Belgium and Luxembourg there were no more than 6% of crypto enthusiasts.

Trading.

You can see from another angle: what happens to the geography of trading. Here we will not see the final beneficiaries, owners of cryptocurrencies, but we will see how global the world has become, including in the field of cryptocurrencies.

Among more than 13 thousand companies that accept cryptoactive assets, those that are located in North America, Europe, southern Africa and Oceania, as well as some regions of South America and South-East Asia, predominate.

The geographical distribution of Bitcoin ATMs shows a similar picture.

Currently, more than 4 thousand cryptomattes are functioning in more than 70 countries. The United States, Canada, Austria and the United Kingdom dominate this area.

It is worth noting that, taking into account the population size, the use of cryptocurrencies is more popular in developing countries that have experienced serious financial crises. This is indicated by the analysis of transaction volumes on the LocalBitcoins P2P exchange. It is noteworthy that, as examples of such emerging markets, analysts point to Venezuela.

The use of cryptoactive assets is a global phenomenon involving people from all over the world. At the same time, some regions and a number of specific countries (USA, Canada, Japan, South Korea, China, Great Britain, India and France) seem to dominate.

 

Conclusion.

The largest countries in terms of possession of cryptocurrency remain the richest countries, namely the United States and China. At the same time, from the point of view of the share of cryptocurrencies in the total asset structure, countries with unstable currencies take the lead. It can be expected that in the near future Turkey, Venezuela, Argentina, Iran and other countries with a falling national currency will increase their share.

Maximum trading activity is observed in tax haven countries such as Malta, Belize and several others.