If you are a bitcoin owner or are interested in investing in them, you might be curious to know how many people own this cryptocurrency. It is pretty hard to find out how many bitcoin owners are there in this world. However, some studies prove that around 1.3% of the world’s population owns bitcoins. The demand for this cryptocurrency is increasing as people understand the benefits of investing in them. There are other reasons as well, due to which this cryptocurrency’s popularity is growing faster. In this article, we will provide you with all the information regarding bitcoin and its growth.
Various methods have been used to determine how many people have adopted this cryptocurrency in their lives. We cannot say that their results are accurate. The main reason behind it is that the bitcoin owners are divided into different categories. Some own them but do not use them, while others make regular transactions. Therefore, finding the exact percentage is challenging.
One cannot deny the fact that digital currencies are beneficial for people. They can earn a potential amount of money by investing in them. Also, anyone can begin trading by having a little knowledge about the same. Many platforms offer reliable information to traders. You can visit this site if you want extensive knowledge about cryptocurrency.
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What are the methods to determine the number of bitcoin owners?
There are two primary methods to find the total population using bitcoins. In the first method, known as chain analysis, one can determine the categories of digital coin owners. There are many problems with this method:
- A person can have multiple wallets: You can create many bitcoin wallets from different devices. It is tough to identify the number of wallets owned by an individual. Due to this, you won’t get an accurate percentage of bitcoin users.
- An address can belong to many people: There is a high possibility that an address can belong to many people. Accuracy won’t be there because all the people falling under one address will be considered as one.
- Lack of wallets: Many bitcoin owners don’t create wallets. Instead, they use exchanges for trading. Only the number of wallets can help in giving the exact percentage.
The second method is done by identifying the total number of user accounts in exchanges. All the exchanges provide different types of data to the people. Some of them can tell you the exact number of users, while others only give the trading volume of their exchange. There are problems in this technique as well-
- Several inactive accounts: Many users just create the account to buy digital coins and sell them after some time. It is still considered a bitcoin’s owner account, but he doesn’t own any virtual coins in reality.
- Using other cryptocurrencies: One cannot determine which type of digital currency the person has from the data. It might not always be bitcoin. So, the final results won’t be correct.
- A person can have many accounts: A single person can create multiple accounts in the exchange.
Is bitcoin’s growth impressive in the past few years?
You might already know the answer to this question. This cryptocurrency is rising in popularity in the world. According to a report, the number of users has increased from around 45 million to more than 65 million in one year (January 2024- January 2024). We can also expect the same growth in the future years as well. The growth is excellent because many people think that it is a highly profitable cryptocurrency. It is true in some cases because the value is according to the market conditions.
Another study tells us that there are around 5 2.4 million bitcoin traders all over the world. From this, you can imagine how famous this cryptocurrency is. Here, we have collected country-wise records-
- Europe: 10 million
- South Korea: 5 million
- Australia and New Zealand: 4,00,000
- Japan: 6.75 million
- Latin America: 1.05 million
- North America: 15.3 million
- Rest of Asia: 15.3 million
Have bitcoins been banned in some countries?
Yes, some countries prohibit the use of this currency. So, all the owners are from the world except these countries. They are as follows-
- China: China has banned bitcoin trading due to illegal drug as well as gun trade.
- Russia: Russia is another country where residents cannot invest in digital coins. The higher authorities believed that this currency might help in increasing illegal activities.
- Thailand: The government of Thailand set some rules regarding the regulation of virtual coins. After some time, they banned it forever.
What are the pros and cons of investing in bitcoins?
It is essential to know why some people are interested in bitcoins while others are not. The following pros and cons will give you some insights regarding the same:
- Easy to use: Anyone can learn how to use this cryptocurrency. You don’t have to become an expert first to get started with it. But it will help you if you consider gaining knowledge about it.
- Decentralized: If you do not want the involvement of third parties, it is a perfect option for you. The banks do not regulate virtual coins. Their value is decided by the market, not by banks or any other financial institutions.
- Fast and inexpensive: The blockchain system does the whole process of sending and receiving coins. All the transactions are super fast, no matter where you have sent bitcoins. There is no specific cost to send or receive them.
- Highly volatile: Nobody can predict the value of this cryptocurrency. You will never know when the prices go or go down.
- Risk of loss: Every digital currency has some potential risks. Bitcoins also come up with the same. Sometimes, problems in the system might cause you a considerable loss.
In the end, we can say that bitcoin is doing great in the world economy. It is pretty complex to find out the exact number of owners investing in them. We hope this article helped you gain some information about the percentage of bitcoin owners across the globe.