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"101 million users joined the cryptocurrency market in 2020"


The third global cryptoassets comparative study from the University of Cambridge is here. The highlights of the report point to a growth of almost 200% in the number of users of cryptocurrencies in the last two years. Cambridge's extensive digital asset market study also revealed that year-on-year growth across all segments slowed to 21 percent in 2019 from 57 percent in 2018.

Unique cryptocurrency users grew 189% in the last 2 years

According to the latest edition of the Global Cryptoasset Benchmarking Study published by the University of Cambridge and the school's Center for Alternative Finance, the global user base of cryptocurrencies has risen 189% since 2018.

Crypto users grew 189 percent from 2018 to date, source: University of Cambridge

Observations show that 101 million unique users signed up for the use of Bitcoin and crypto assets with 'service providers' in Q3 2020. These service providers, mainly cryptocurrency trading platforms and wallets, registered 191 million accounts for such users. According to the Cambridge report:

"In 2018, the second global cryptoassets comparative study estimated the number of identity-verified cryptoasset users at around 35 million globally."

UC has also explained this meteoric growth in the demographics of cryptocurrency use.

“This 189% increase in users can be explained both by an increase in the number of accounts (which increased by 37%), and by a higher proportion of accounts systematically linked to the identity of an individual, which allows us to increase our estimate of minimum user numbers associated with the accounts of each service provider ”.

The report's authors have stated that not only their survey, but studies conducted by the UK Financial Conduct Authority also found a 78 percent increase (compared to 2019) in crypto asset ownership among individuals at the level. world.

Retail users are more than institutional users

UC's latest crypto market study states that despite the development of a professional crypto investment infrastructure for institutions, retail clients are the most dominant section of users.

"The customer base of crypto asset service providers remains primarily retail, which shows that despite growing institutional interest, the conversion rate (from expression of interest to investment) remains limited."

retail vs institutional crypto users
Retail cryptocurrency users are more pronounced, source: University of Cambridge

According to the team that conducted and compiled the research, issues such as market manipulation and cryptocurrency price volatility have resulted in the traditional institutional investment class reflecting lukewarm interest in entering positions.

On the bright side, however, the benchmark study on cryptocurrencies noted that 30% of registered customers at North American and European service provider companies are "commercial and institutional customers." In contrast, this figure for APAC, LAC, and MEA is 16%, 10%, and 20%, respectively.

In the conclusion of the observations on cryptocurrency users, UC research states that many service providers in the Asia-Pacific region (APAC) have bitcoin and cryptocurrency miners as clients. This is due to the high concentration of mining activities, "especially in China." The report stated:

"Miners use their services to clear their coin inventory for national fiat currencies and cover fiat-based expenses."

In addition, the miners are dedicated to covering their profits considerably. A growing number of these digital asset miners prefer to put their cryptocurrencies as collateral in exchange for trust funds.

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