Cryptocurrencies are increasing in popularity every year as more companies accept them to pay for goods and services. Also, you can trade cryptocurrencies on mobile apps, which gives them value and has seen people make a living from crypto trading.
To learn more about cryptocurrencies and how they are shaping our world, we have compiled a list of the most interesting crypto statistics. You will discover interesting stats that will shine a light on the various aspects of cryptocurrencies.
Crypto Use Statistics
Around 16% of Americans use cryptocurrencies
16% of people in the US using cryptocurrencies highlights a growing trend. The number represents around 53 million people, which is not a small number. Note that this statistic is not the number of people using crypto as an everyday currency. Some might be using it as an investment opportunity.
Bitcoin mining uses the same energy annually that could power 10 million homes
It is no secret that Bitcoin mining is energy-intensive. The miners could provide energy to 10 million homes, which is a lot of people. Also, this is one cryptocurrency of many. Considering how many homes could be powered instead of the entire cryptocurrency industry, the numbers could be mind-boggling.
22.13% is the ratio of cost of electricity to Bitcoin mining income
This statistic suggests that a large portion of the cost of mining Bitcoin is in electricity costs. Therefore, Bitcoin mining operations seek locations with cheap energy costs. Cooling the GPUs required to mine Bitcoin is a big part of the energy requirements. Therefore, countries like Iceland that are naturally cold is a big advantage.
Kentucky has introduced energy and tax breaks for crypto miners
The state of Kentucky is promoting Bitcoin mining operations by giving them breaks on energy taxes. This improves the profitability and viability of Bitcoin mining. In contrast, other countries like China have outlawed Bitcoin mining making them illegal.
60% of the processing power required for Bitcoin is sourced from non-renewable energy sources
This statistic indicates that most of the energy used for Bitcoin mining operations does not come from renewable sources. This is not surprising since the majority of energy used is not renewable. As renewable energy technology improves, so will its adoption rate in the cryptocurrency industry.
12 countries do not allow cryptocurrencies to be used in any form
While many countries are dealing with the changes that digital currencies are causing to the financial system, others are outright banning them. This might be because they are difficult to control or they feel that bad actors can take advantage of them to carry out criminal activity.
Cryptocurrency Growth Statistics
Now lets us turn our attention to a few interesting statistics that indicate how cryptocurrencies have grown over the years. The speed of growth over the last decade is unprecedented.
Bitcoin has increased in value from 2012 to April of 2022 by 208,900%
The impressive growth of Bitcoin has literally turned regular folk into millionaires or some into billionaires. Bitcoin is the most popular cryptocurrency and an example of rapid wealth creation if you get in at the right time. However, Bitcoin continues to be volatile, so people feel it will crash while others believe it will continue to grow in value.
The daily worldwide trade of cryptocurrencies has risen to $109 billion per day
When evaluating the popularity of cryptocurrencies you need to look at the amount that is traded daily. Large volumes of crypto are traded daily and the number continues to grow. However, the 80/20 rule is in effect here because the majority of trades are with only 20% of the currencies. When a single cryptocurrency becomes viable for buying goods, then you can expect this number to grow even higher.
$87 billion is the total size of the Bitcoin market
The peak of the Bitcoin market was $1.27 trillion in November 2021, but since then it has decreased, which is the nature of cryptocurrency volatility. Currently, the market cap is $87 billion, which means that if you wanted to buy every single Bitcoin in existence, you need to spend $87 billion.
Source: NY Times
The total market cap of cryptocurrency is $2.13 trillion, which is equivalent to the 8th largest economy in the world
The massive size of the cryptocurrency market shows that it is here to stay for the long term. Every indication indicates that it will continue to grow and possibly become the primary way of exchanging resources. The large capital gains from these huge wealth increases mean the tax bills are massive. Recently governments like the US classed crypto as an asset, which incurs taxes and the gains must be shared with the IRS.
Over 10,000 cryptocurrencies exist in circulation
Many developers have created their version of a cryptocurrency, hoping that it will be the next Bitcoin. From the 10,000 cryptocurrencies, many have different characteristics. Eventually, one might be created with the right features to go mainstream and challenge FIAT currencies to buy and sell goods online. Governments are also developing their cryptocurrencies to get on the bandwagon.
As of February 2021 there are over 15,000 Bitcoin ATMs
Bitcoin ATMs allow you to withdraw cash when depositing Bitcoin, or you can deposit cash and receive Bitcoin to a wallet of your choosing. These Bitcoin ATMs are propagating the usability of Bitcoin, which means it has more utility than most other cryptocurrencies.
As of 2020, the global number of yearly Bitcoin transactions is 120 million
This number is nothing compared to FIAT currency transactions, but it is a growing number. Expect the rate of growth to continue as the cryptocurrency market develops and continues to be accepted by businesses worldwide. For instance, many online casinos are allowing Bitcoin as a form of payment.
Disadvantages of Cryptocurrency Statistics
In this section, we will look at the various statistics that share a few areas of concern. It is important to learn about the negatives so you can have a balanced overview of cryptocurrency.
$281 million worth of cryptocurrency was stolen since 2020 – however, 80% has been returned
This statistic shows that it is possible to steal large amounts of cryptocurrency. The anonymity of crypto is part of the problem. Once the funds are stolen it is very hard to follow the trail of where the funds are sent, but not impossible.
User and Demographic Statistics
Now we will take a closer look at the statistics that describe the users behind cryptocurrency. This will help you figure out what kinds of users are into cryptocurrency and volume of people using them.
Over 70 million people have blockchain wallets worldwide
Blockchain wallets allow you to store digital currency to keep it safe. They are protected by encryption keys that allow the user to gain entry to the currency. Wallets can be in physical form if they are sorted on an external hard drive. The encrypted data can be password protected too. Some wallets have a limited number of correct entries before denying entry forever, which means you can lose access to money.
Every 2 seconds a cryptocurrency post appear on social media
This statistic indicates that cryptocurrencies are popular since many people mention them in their social media posts. Also, it is estimated that around 14,000 to 32,000 tweets are shared daily.
It costs $500K to $1 million to develop an algorithm that can detect crypto moving signals
Software engineers can use their skills to develop algorithms that are able to profitably trade on cryptocurrency prices. Kind of like playing the stock market to make a profit. However, the reliability and profitability of these algorithms vary.
32% of Nigerians have owned a cryptocurrency in their life – the highest of any country
It is estimated that around 32% of Nigerians have had crypto in their life, which is a high figure. This might be because the financial services in Nigeria are not in a developed state due to regulations. Therefore, cryptocurrencies are a good alternative to doing business worldwide. In contrast, only 9% of Americans have had cryptocurrency at one point in their life.
67% of millennials view Bitcoin as a safer place to store wealth compared with gold
The increased trust in Bitcoin compared to traditional assets like gold is surprising. That is because gold is a physical asset that is finite. Bitcoin in practice is also finite, but it has a much shorter track history. Perhaps millennials are more eager to trust a distributed system compared to centralised assets that the government can control.
Cryptocurrency Crime Statistics
To have a balanced overview of cryptocurrencies you need to be aware of the crime-related statistics. This shines light on some of the technology problems that are worth knowing.
Just in 2020, over $1.9 billion was racked up in criminal events
It is not a secret that criminals use cryptocurrencies to earn money and the scale of the amounts earned is huge. The high levels of anonymity mean that criminals are harder to catch when digital currencies are involved. As the popularity and widespread use of cryptocurrencies grow, you can also expect criminal activity numbers to grow alongside them.
One study discovered that 2 hacking groups claimed to be responsible for about 60% of all crypto related crimes
If only 2 hacking groups were eliminated, then up to 60% of all crimes would go away in the digital currency world. Possibly more criminal groups do not exist because it is very difficult to breach networks that hold and process transactions.
$3.5 billion was sent in Bitcoin to crypto wallets surrounding criminal activity
This statistic suggests that Bitcoin is one of the main cryptocurrencies used in criminal activity. It is unsurprising because it is the most popular virtual currency and has the most value. As other cryptocurrencies gain popularity, then they will too be targeted by criminals as a means of transferring money.
Only 1.1% of all cryptocurrency transactions are illegal
Cryptocurrencies have gotten a bad name because they are viewed as a safe haven for money laundering and other illegal activity. However, this statistic suggests that only a small fraction of total transactions are illegal. Criminals use all currencies, so it is the nature of the financial industry.
How are cryptocurrencies taxed?
What are the most popular cryptocurrencies?
Can cryptocurrency overtake USD in widespread adoption?
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