Number of Crypto Users Increase Despite 85% Market Correction
When all is said and done, people remained relatively loyal to bitcoin and crypto in 2018.
Crypto Says Goodbye to the Last 12 Months
This year has not been particularly kind to BTC, especially when compared with 2017, the year of the bitcoin boom. Last December, cryptocurrency enthusiasts and traders everywhere were treated with a special Christmas treat when bitcoin rose to just under $20,000 during the final weeks of the year. After a series of extensive price spikes throughout 2018, it appeared bitcoin had finally hit its mark.
But just a month later, bitcoin began to take a nasty fall, and that fall has never let up. At press time, bitcoin has lost virtually 85 percent of its previous value, and today, it’s trading for just over $3,400.
People Still Love Their Crypto
But that doesn’t mean people gave up on bitcoin and cryptocurrency altogether. A new report issued by the Cambridge Center for Alternative Finance suggests that the number of “newbies” entering the crypto space in 2018 practically doubled from the numbers listed for 2017. Despite bitcoin’s record (and consistent) drops, BTC and crypto users shot up more than anyone likely anticipated.
The authors explain:
“Conforming with popular narratives, survey data indicates that most users – both established as well as new entrants – are individuals and not business clients. Individuals can by hobbyists, retail investors, consumers or users seeking a better investment or payment alternative… Growth rates were at their highest in 2017, and the number of new users’ accounts as well as ID-verified users continued to rapidly grow in 2018 as well.”
Will Bitcoin Return to Greatness?
The data suggests one hugely positive thing: that bitcoin is potentially in line for another rally. If users continued to flock to bitcoin even during times of extreme crisis, that could mean recovery is on the way in the coming months – especially if new customers continue to flock to the space. It’s a nice little push forward considering some analysts predict bitcoin to fall even further.
Data issued in the report show that the number of user accounts on digital exchanges nears the 150 million-mark for 2018. This is almost double the number of accounts in 2017, which was only at about 80 million. In addition, the number of ID-verified accounts sprung from about 20 million to 40 million between 2017 and now.
However, the study confirms that bitcoin is still largely being used for investing purposes rather than for commerce or making purchases. Volatility remains extremely high, which has prevented bitcoin from being used as a potential “money replacement” more often.
NICK MARINOFF · DECEMBER 13, 2018 · 12:07 AM
Alan Zibluk Markethive Founding Member