Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled
December 13 2018 - 4:54AM
ADVFN Crypto NewsWire
It turns out that cryptocurrency enthusiasts were committed well
beyond the HODL rallying call that urged them to hold on during
this year’s digital-asset market collapse.
The number of verified users of cryptocurrencies almost doubled
in the first three quarters of the year even as the market
bellwether Bitcoin tumbled almost 80 percent, according to a study
from the Cambridge Centre for Alternative Finance. Users climbed
from 18 million to 35 million this year.
Users of Crypto Double Amidst
Market Downturn
Data reflects numbers for the first
three quarters of this year
Source: Cambridge Centre for Alternative
Finance
The figures may provide a silver lining. If user numbers
continue to increase even in a deep market downturn, that could
signal that an eventual recovery could be coming -- a crucial
finding at a time when some critics predict that the value of
cryptocurrencies will go down to zero.
Most users are likely still speculators and long-term investors.
Due to the market volatility, cryptocurrencies are barely used in
commerce.
"Conforming with popular narratives, survey data indicates that
the majority of users – both established as well as new entrants –
are individuals and not business clients," authors of the study
said. "Individuals can be hobbyists, retail investors, consumers,
or users seeking a better investment or payment alternative."
The number of crypto accounts increased as well, the study
found. A single user can hold multiple accounts.
"Growth rates were at their highest in 2017, and the number of
new user accounts as well as ID-verified users continued to rapidly
grow in 2018 as well," the study said.
By
Olga Kharif
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