The world has changed due to the birth of cryptocurrencies in this digital era. People are no longer limited to transacting business among themselves due to differences in their country's local currency. Since its inception, the field of cryptocurrency has gathered users day in day out because more people have come to like it. How many cryptocurrency users could be there if a census of the whole world was to be taken? It is a wonderful question for statisticians to find themselves hooked to in order to seek knowledge about this new fiat currency of this era. The fact is that the true numbers of cryptocurrency users may not be obtained due to some biases that would affect the collection of data hence only an approximation can be attained.
To check the number of cryptocurrency users we need to check for the amount of cryptocurrency wallets. Cryptocurrency wallets are digitized tokens given to users to function as a storage point, transaction point and view point for the performance of the digital coins. These digital coins have moved from being worth cents to worth a thousand dollars over a short period of time. Daily more people are developing their interests in this decentralized fiat currency exchange system making it rise rapidly in its value. An estimate of the total number of wallets that were available by the year 2016 statistics report came at forty-seven million of cryptocurrency users.
In 2016, Bitcoin was still worth a hundred dollars as it rose rapidly heading to a thousand. Between 2017-2020 cryptocurrency users have risen rapidly since headlines fueled the creation of cryptocurrencies millionaires. The estimated number may be in the billions of users, but there is a bias in the estimated numbers. To possess a wallet all you need to do is to go on a website providing exchange for cryptocurrencies then register as a member. The number of websites providing users with wallets in this internet era is numerous. Coinbase, Binance, Okex and other sites provide mining services for cryptocurrencies.
This will mean that an individual can have wallets from multiple sites with their real name or aliases. Therefore, in estimating the true number of cryptocurrency users, we may find multiple counts for an individual. This is a bias that may hinder the statistician efforts of collecting the correct numbers of the population. Another limiting factor may be the type of wallet offered by a particular site and for which cryptocurrency. There are sites that provide all crypto accounts under one roof while others that will provide specific wallets only. Websites like Coinbase, Binance and Okex will provide access to all crypto accounts assigned to an individual. Then there are apps like Ethereum which will assign a single wallet to any individual.
Bitcoin mining sites are a wallet for investors in mining practices depending on their needs. This is another limiting factor that may tamper with the correct results for the total users of cryptos. Some may possess mining addresses and Coinbase accounts, hence bringing bias to the study. There are cases of people possessing accounts on Coinbase, Paxful and Binance which shall bring confusion when you try to check for the true amount of users. This is a great limiting factor that can't be solved anytime soon hence we shall only approximate the amount of users. In general, where there are ten people it can be assumed two among them know something about cryptos.
The two could be actively involved in digital currency, either as investors or spectators. The assumed study may vary from one region to another due to other factors that play a role too. These factors include the level of a person accessing the internet and the activities they do online. Those that work online can end up getting paid by cryptocurrency therefore they'll be curious to know more about it. Others who buy and sell goods online may use these currencies to carry out their activities. Finally, users of this mode of money will enjoy freedom from their local coins or notes that are limited across borders. This is a good reason for more people to sign up daily then use them in their life activities.
The activities may include shopping, earning and hiring things or experts from all over the world.