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Cryptocurrency has been gaining popularity over the past few years. But what percentage of the population actually holds cryptocurrency?
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Introduction
Cryptocurrency has been making headlines for several years now, and its popularity seems to be constantly on the rise. But just how many people actually own or use cryptocurrency?
This is a difficult question to answer definitively, due to the decentralized and anonymous nature of much of the cryptocurrency market. However, various studies and surveys have attempted to estimate the percentage of the population that holds at least some form of cryptocurrency.
According to a 2019 survey by GlobalWebIndex, 8% of respondents worldwide said that they owned or had previously owned cryptocurrency. This figure represents a significant increase from the 3% who said they owned cryptocurrency in 2018.
Another study, carried out by Dalia Research in 2018, found that 5% of European adults owned or had owned cryptocurrency. This figure was highest in Malta (12%), followed by Bulgaria (9%), Slovakia (8%), and Greece (7%).
While it is difficult to know exactly how many people own cryptocurrency, it is clear that its popularity is on the rise. With more and more businesses beginning to accept cryptocurrency as payment, it is likely that even more people will start using it in the future.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual asset designed to work as a medium of exchange that uses cryptography to secure its transactions and to control the creation of additional units of the currency. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, numerous other cryptocurrencies have been created. These are often referred to as altcoins, as a combination of alternative coin.
How Many People Hold Cryptocurrency?
The answer to this question is both complicated and largely depends on who you ask and what criteria they are using to make their estimation.
As of September 2018, one study that was conducted estimated that about 3-5% of the world population, or approximately 200 million people, held some form of cryptocurrency.
Another study conducted in March 2018 came to a slightly higher estimate, finding that around 8% of the world population, or 584 million people, owned cryptocurrency.
However, it is important to note that both of these studies defined cryptocurrency ownership somewhat broadly. In the first study, for example, simply owning any kind of digital currency or being a part of a cryptocurrency transaction counted as ownership. The second study used a slightly more restrictive definition, counting only those who owned digital currency wallets as owners.
Given the rapidly changing nature of the cryptocurrency landscape, it is likely that these estimates will change over time. As more people become aware of cryptocurrencies and begin buying and using them, the percentage of the population that can be considered cryptocurrency owners is likely to increase.
Who Holds the Most Cryptocurrency?
There’s no easy answer to this question due to the lack of regulation and standardization in the cryptocurrency industry. However, a recent study by the Cambridge Centre for Alternative Finance found that approximately 7% of the world’s population holds some form of cryptocurrency. This figure is based on a survey of over 27,000 people from over 140 countries.
So, who exactly are these crypto holders? Well, they tend to be male (83%), young (between 18 and 34 years old), and have a high household income (over $75,000). They’re also more likely to live in developed countries like the US, UK, Canada, and Australia.
Why Do People Hold Cryptocurrency?
Bitcoin and other cryptocurrencies have been gaining in popularity since they were created over a decade ago. While there are many different reasons why people choose to invest in cryptocurrencies, some of the most common reasons include:
-The potential for high returns: Cryptocurrencies have the potential to generate higher returns than more traditional investments, such as stocks or bonds.
-The possibility of price appreciation: Unlike fiat currencies (i.e. government-issued currencies such as the US Dollar), cryptocurrencies are not subject to inflationary pressures. This means that, over time, they could potentially increase in value if demand for them increases relative to supply.
-The possibility of price stability: Cryptocurrencies can also be seen as a hedge against inflation, as their prices are not directly tied to the prices of goods and services in the real world. This makes them less vulnerable to volatility caused by inflationary pressures.
-The decentralization of control: Cryptocurrencies are decentralized, meaning that they are not subject to the whims of governments or central banks. This could make them more resistant to political and economic turmoil.
What Are the Risks of Holding Cryptocurrency?
Though there are a handful of benefits to holding cryptocurrency, there are also an equal number of risks. Some of the risks include:
-Price Volatility: The prices of cryptocurrencies are incredibly volatile. This means that the value of your investment can change dramatically in a very short period of time.
-Loss of Private Keys: If you lose access to your private keys, you will also lose access to your cryptocurrency. There is no centralized authority that can assist you if this happens.
-Security Threats: Cryptocurrencies are often targets for hackers and other malicious actors. This is due to the decentralized nature of most cryptocurrencies, which makes them more difficult to secure.
-Regulatory Uncertainty: Cryptocurrencies are still largely unregulated by governments around the world. This regulatory uncertainty can introduce additional risk into the market.
Conclusion
In conclusion, it is difficult to determine an exact percentage of the population that holds cryptocurrency. However, based on the data and studies that have been conducted, it is safe to say that a relatively small percentage of the population currently owns cryptocurrency.
