The cryptocurrency market has experienced a significant surge in participation in recent years. As a result, it has become an increasingly valuable investment.
The Growing Cryptocurrency Market
How many people use cryptocurrency? Over the past five to 10 years, the cryptocurrency market has exploded, with more people than ever before investing in crypto. The availability of information about coins and the crypto market has also significantly increased. Cryptocurrency is now a routine topic in financial news media that provides education on crypto markets and insights into crypto trends.
According to a survey conducted by the Pew Research Center in 2023, approximately 17% of Americans have purchased or traded cryptocurrency. In addition, 88% reported hearing “a lot” or “a little” about crypto, only 12% claimed to have never heard of it. Additionally, confidence in cryptocurrencies also varies based on whether someone has invested in them. While roughly a quarter (24%) of cryptocurrency users have confidence in their safety and reliability, only 2% expressed a high confidence. It’s worth noting that even among cryptocurrency investors, 75% have concerns about the security of their investments.
Furthermore, there are now more coins in the crypto market than ever before, with over 9,000 coins in existence as of February 2, 2023, according to Statista. This is a significant increase from the couple of hundred coins that existed in 2015. However, it is believed that only a few of these coins have significant value, and only a few coins make up the majority of the market.
Demographics of People Who Own Cryptocurrency
The prevalence of cryptocurrency usage among different groups has been a topic of interest. According to the Pew Research Center while crypto can be traded by anyone, certain groups are more likely to participate in the crypto market. Specifically, about 25% of American men have invested or traded in crypto, while only 10% of women have partaken in the crypto market.
Moreover, cryptocurrency is more prevalent among younger individuals. Approximately 28% of Americans between the ages of 18 and 29 and 25% of Americans between the ages of 30 and 49 have traded crypto. However, these numbers significantly decrease for older generations, with only 8% of adults 50 and older invested in cryptocurrency.
The research also indicates that crypto is most popular among younger men, particularly those between the ages of 18 and 29, with 41% reporting that they have invested in crypto. The next most popular group is men between the ages of 30 to 49, with 36% reporting being crypto or Bitcoin users.
How Many People Own Bitcoin?
Bitcoin has played a significant role in the development of the crypto market as the first successful decentralized digital currency. It was introduced in 2008 and has since experienced a remarkable surge in both value and popularity.
As of today, there are approximately 106 million Bitcoin owners globally. How many Bitcoin wallets are there? In terms of Bitcoin wallets, it is estimated that there are about 200 million in existence. Despite the existence of numerous other cryptocurrencies, Bitcoin continues to be one of the leading coins in the market, with significant popularity and value.
Reasons People Buy Cryptocurrency
Cryptocurrency has seen an enormous influx in investors over the last few years. But why are so many people attracted to this investment?
For many Bitcoin and cryptocurrency traders, investing in crypto is a common practice. This entails buying crypto with the hope of selling it later after its value has increased. By doing so, investors can benefit from their investment, leaving their portfolio in a better position. Nonetheless, it is crucial to note that a crypto investment can be volatile, leading to significant changes in value.
Despite this, over the years, many popular coins like Bitcoin have experienced a remarkable surge in value since their inception.
According to investment professionals and experienced investors, portfolio diversification is a critical element in building a robust investment portfolio. This involves holding various types of assets to mitigate the risk of investing. For instance, if you hold only traditional stocks, your portfolio may be adversely affected in case of a stock market crash. In contrast, if you incorporate traditional stocks, real estate, and crypto in your portfolio, the loss from one market may be offset by gains from another.
Furthermore, cryptocurrency typically operates independently of the traditional stock market. This implies that trends in the stock market have no impact on crypto, and vice versa. By owning assets outside the stock market, you can strengthen your portfolio by expanding your exposure to different markets. Moreover, there are several coins available that can serve to diversify your portfolio further.
As the name suggests, cryptocurrency is a form of currency that can be used to send money and buy goods from participating businesses. This feature has attracted many people to crypto as a means of buying and selling things, primarily because it is decentralized. This means that its value is not controlled by any government. Moreover, crypto is not directly affected by macroeconomic trends, meaning that inflation will not have the same impact on crypto as it would on traditional fiat currency.
Another advantage of crypto is that an increasing number of businesses are accepting it as a form of payment. For instance, notable corporations such as Starbucks Corp., Microsoft Corp., Whole Foods Market IP Inc., and The Home Depot Inc., accept Bitcoin as payment. Other popular coins, such as Ethereum, may also be accepted as a means of payment.
Access to banking is a global issue that affects people worldwide. Many bank accounts are difficult to open, and they charge numerous fees, making utilizing a bank an expensive endeavor. Some of these fees may include maintenance and service, transaction, and overdraft fees.
Creating a crypto account is comparatively more accessible, and the associated costs are often less. Cryptocurrency also enables extremely fast transactions. Once a transaction is conducted, the money immediately goes into the recipient’s account, akin to handing over physical cash. This is unlike transfers made with traditional online banking, which may take several days to process.
Saving for retirement is a crucial aspect of preparing for the future. Retirement investment accounts help grow savings by exposing them to investment opportunities, and the resulting profits from those investments contribute to further savings growth.
With a crypto retirement account, traders can use crypto investments to save for their future. While there are various types of investment accounts available, self-directed Bitcoin individual retirement accounts (IRAs) are considered one of the best options. They offer investors the freedom to invest in diverse assets and take control of their investments.
Traders can open a crypto IRA and buy, sell, and trade their investments to grow their retirement funds. It operates similarly to a crypto trading account; however, it should be held long-term and used to supplement income after the trader retires.
Expand Your Savings with Crypto
The increasing number of people trading in crypto is a positive development for the crypto market. As interest in a particular coin increases, its value also tends to rise. As crypto continues to gain popularity, it will inevitably become a more successful investment opportunity. There are numerous avenues available for investors to venture into the crypto market, like joining an exchange or broker.
Moreover, traders can take advantage of the growth potential and tax benefits provided by a Bitcoin IRA. This specialized investment account can provide a tax-advantaged way to invest in cryptocurrencies as part of a retirement portfolio in a Bitcoin IRA.
Frequently Asked Questions
Q: Why are there so many crypto coins?
A: As crypto grows in popularity, more coins are created to try to attract investors. Thousands of coins are available, but only a handful make up the majority of the crypto market.
Q: How many cryptos are there?
A: Statista estimates that there are nearly 9,000 different cryptocurrencies in existence. However, not all of these coins may be reputable.
Q: Where does crypto get its value?
A: Crypto gets its value from supply and demand. A crypto’s value will rise as more people buy and hold the coin.