The world has changed due to the birth of cryptocurrencies in this digital era. People are no longer limited to transact 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? This is a wonderful question that statisticians can find themselves hooked to inorder 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 numbers of cryptocurrency users we need to check for the amount of cryptocurrency wallets. The cryptocurrencies wallets are digitised tokens given to users to function as a storage point, transaction point and view point for performance of the digital coins. These digital coins have moved from being worth cents to worth a thousand of dollars over a short period of time. Daily more people are developing their interests in this decentralised fiat currency exchange system making it to 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 rose rapidly when headlines fueled the creation of cryptocurrencies millionaires. The estimate number maybe in billions of users but there is a bias in the estimated numbers. To possess a wallet all you need 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 numerous. There is Coinbase, Binance, Okex and other sites that provides mining services for cryptocurrencies.
This will mean that an individual can have wallets from multiple sites with their real names 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. The other limiting factor maybe the type of wallet offered by a particular site and for which cryptocurrency. There are sites that provides all crypto accounts under one roof while others that will provide specific wallet only. A website like Coinbase, Binance and Okex will provide all cryptos accounts assigned to an individual. Then there are apps like Ethereum which will assign a single wallet to any individual.
Bitcoin mining sites of a wallet to the investor in the mining practices depending on their needs. This is another limiting factor that may tamper with the correct results for the total users of cryptos. Someone may possess a mining address and Coinbase account hence bringing a bias in 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.
Those two persons 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 role too. This factors include the level of 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. There are others who buy and sell good 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 persons 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.