How Many People Own Bitcoin and How They Use BTC?

  • George Shnurenko
    📚 WikiCoin

    Millions of people use Bitcoin daily all around the world. Do you know how they are distributed?

How Many People Own Bitcoin and How They Use BTC?
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At the moment, it is estimated that there are 23.7 mln Bitcoin addresses. This is about 0.31 percent of the total population. Also, if we factor in the fact that Bitcoin users usually have more than one address, the number of unique active users decrease further.

Remember Satoshi Nakamoto, the father of Bitcoin? He is definitely proud of his ‘son’ at the moment. It was said that his account contains 980,000 Bitcoins, translating to $15.2 bln. Impressive, right?

We also found out that about 96 percent of the total amount of Bitcoin is owned by just four percent of the addresses listed. Here are other statistics that might interest you.

  1. 457,000 addresses have more than $10,000

  2. The top 100 richest Bitcoin addresses have over $19 bln between them

  3. Over 500,000 wallets have been downloaded

  4. Bitcoin manages over 12,000 transactions per hour

  5. 99,000 Bitcoins are sent hourly.

Despite all these, why do you think people scarcely use Bitcoin?

Reasons why people don’t use Bitcoin

The following are the top reasons why people desist from using Bitcoin. They are ranked in order of popularity.

  1. Bitcoin is complicated and difficult to understand

  2. It is difficult to use

  3. People believe it is a scam

  4. The fees required are too many

  5. People are just disinterested in the venture

  6. They believe it’s a bubble

  7. The risks involved are too high

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Finder’s survey on how many people use Bitcoin

Finder set out to understand the distribution of cryptocurrency among the American population. Specifically, gender distribution statistics and interest level. They reported that 92 percent of the American populace have not invested in Bitcoin or any other digital currency and eight percent plan to invest in the nearest future.

They further discovered that 10.3 percent of those asked owned one form of cryptocurrency and 5.15 percent of these owners owned Bitcoin. The average amount of money people spent on Bitcoin was estimated to be $3,453.89.

Although it is worth noting that they only surveyed 2001 adults, representing 0.0011 percent of the adult population.

Infographics 1

Survey on how many  people use Bitcoin by Global Blockchain Business and Survey Monkey

This joint survey included 5,761 adults in America and only five percent of the correspondents own a cryptocurrency. 21 percent claimed that they were considering investing in cryptos.

LendEDU’s survey on how many people use Bitcoin

LendEDU surveyed 1,000 individuals and gleaned that 13.99 percent of this survey participants own Bitcoin. Another 17.18 percent had intentions of investing in bitcoin in the nearest future.

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Who uses Bitcoin more?

Male or females? Millennials or generation X? Who uses Bitcoin more and how many people use Bitcoin in different categories? Let’s look at the results of the survey.

Combining the data from Finder, LendEDU, and Global Blockchain Business and Survey Monkey, the following conclusions were drawn.

  1. Men generally invest in cryptocurrency more than their female counterparts.

  2. Millennials invest more compared to members of generation X.

  3. Those who are considering investing in cryptocurrency outnumber those who have made an investment in the digital currency.

Who uses Bitcoin more?

Global active usage of Bitcoin

In 2017, a study was conducted by Cambridge Center for Alternative Finance and it was reported that the current number of unique active users of cryptocurrency wallets globally is between 2.9 mln and 5.8 mln. This is rather shocking considering the following stats:

  1. Over 22 mln Bitcoin wallets have been created around the globe.

  2. Coinbase, the leading exchange in the world of cryptocurrency has over 13 mln users

  3. has 18.5 mln wallets

But then, we need to understand that Cambridge’s data was targeted at active users, not those who hodl cryptocurrency. The study employed data from over 100 cryptocurrency companies. These companies are located in 38 different countries, capturing 75 percent of the Blockchain industry.

So now, we can go on to note the other details provided above.

Global active usage of Bitcoin

22 mln Bitcoin wallets

The data was compiled by Bitinfocharts and it was seen that many of the wallets likely belong to the same person/group. This is because most Bitcoin users likely have several Bitcoin wallets and they use these different wallets to keep the nature of their transactions discreet and private.

It could also be attributed to the fact that they use different wallets for different reasons. For instance, some have a dedicated wallet for shopping online. Others have a wallet for keeping their Bitcoin safe (especially if it is a tidy sum). Yet some others have wallets for receiving payments online. In case you’re wondering how this is done, you can check up our post on how to receive Bitcoin payments in your store.

How many Americans own Bitcoin

From the data gleaned from the survey carried out, we learned that approximately five percent of the participants possess Bitcoin. Although the survey wasn’t weighted and the number of correspondents isn’t in tandem with the total population of Americans, we can still use it to get an idea of the total population of Americans who invest in Bitcoin.

Extrapolating the data, we find that about 16 mln Americans have exchanged their US dollars for the cryptocurrency we all know and love. Also, we can surmise that 60 percent of the total population have heard about Bitcoin.

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Bitcoin usage in other countries

The trading volumes in countries all over the world suggest an upward trend in the adoption of Bitcoin. The rise is particularly evident in South America, with countries like Venezuela, Brazil and Colombia leading the chart.

Africa is currently in hot pursuit, with countries like South Africa, Ghana, and Nigeria blazing the trail. Using 2017 as a case study, between January and November, the number of new users trading bitcoin through eToro increased by 671 percent compared to 2016.  

Bitcoin usage in other countries

How many people use Bitcoin compared to how many people use other means of payment?

Truly, Bitcoin is now a force to be reckoned with globally. However, how does it fare relative to other digital payment methods? Here’s an insight.

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PayPal has over 235 mln active users, MasterCard boasts 604 mln active users globally, with 35.7 mln being American. Visa, on the other hand, has over one bln active users. When we compare this to the number of people who use Bitcoin actively - between 2.9 mln and 5.8 mln, we realize that there’s a long way to go.

Without a doubt, Bitcoin has come a long way in such a short while. Early investors are smiling to the bank and it is predicted that the trend will continue long into the future. However, compared to other existing payment methods, a lot can still be done.

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Is Litecoin a Good Investment in 2019? Is It Safe to Invest in LTC?

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Each cryptocurrency has its own positive features and unique peculiarities that allow it to develop and grow steadily. Among all representatives of the market, Litecoin stands alone. The project successfully combines the fundamental factors by which it can claim continued growth in the capitalization rating.

The forecast for 2019 clearly indicates that its most important distinctive details will surely help it move forward, imposing serious competition to the rest of altcoins.

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Features and principles of functioning

Appeared in 2011, the project immediately attracted the attention of users. Its creator, Charlie Lee, has focused on protecting his own cryptocurrency from possible future problems. So, unlike its older brother Bitcoin, Litecoin was initially ready for scalability. LTC cryptocurrency is in permanent operation due to a large number of copies of the program, whose source code was published a week before the start of the plan. The client guarantees security, and its new version has SegWit support.

Litecoin is endowed with a whole list of features.

  • Chain of blocks. This allows you to process a much higher volume of transactions compared to its “big brother”, Bitcoin. It is achieved by increasing the frequency of generation of new blocks, which gives a chance to maintain a larger volume of ongoing operations without modification and, if necessary, change it in the future.

  • Wallet encryption. Encryption allows you to protect yourself from fraudsters. Thanks to this feature, you have to enter a password every time a cryptocurrency is spent. The user also has the ability to view the transactions and account balance. Encryption protects against various viruses that can steal a wallet password and coins.

  • Reward. At the moment, miners get 25 coins for each confirmed block. Following statistics, the number of coins is halved every 4 years.

  • Mining. The mining algorithm of Litecoin is similar to the algorithm of the most famous cryptocurrency, Bitcoin. The main difference lies in the intensive exploitation of RAM during the mining of LTC. Therefore, it is advisable to use ordinary computers with GPU instead of machines with a powerful specialized CPU, for which development becomes quite problematic. The maximum supply of coins is 84 million, and this is almost four times the corresponding number of Bitcoin.

It can also be noted that Litecoin is written in the C ++ programming language. Among the supported operating systems are Windows, Mac OS X and Linux, and many others.

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Relationship to Bitcoin

Despite the strikingly close relationship with Bitcoin, which must be taken into account when analyzing the feasibility of investing in Litecoin for 2019, it is worth noting that the distinctive features of cryptocurrency should be its main development. At the same time, the most important unique features are:

  • More organized, centralized money management

  • High transaction speed

  • Low commission for transactions

  • Ease of making transfers

Charlie Lee stressed that it is Litecoin who is obliged to take the place of the currency that the majority of users will use. At the same time, the existing simplicity, speed and availability of transactions should contribute to the achievement of this goal. In this case, the prospects for the growth of crypto-finance will impress even the most optimistic people.

Differences from Bitcoin

Although the Bitcoin code is at the heart of Litecoin, there are still differences, and in some cases significant. One can distinguish the main ones:

  • More efficient use of a computer’s central processor (CPU) than a video card (GPU), which is fundamentally different from the main cryptocurrency.

  • Due to the increased block generation rate, the transaction is rather short-term and takes no more than 150 seconds.

  • The opportunity of mining in wallet in the SOLO mode or a pool.

  • Mining complexity is recalculated much faster than of Bitcoin’s one.

  • The emission is four times the BTC emission and makes up 84 million coins.

Similarities with Bitcoin

On the other hand, there are also some similar features with the main cryptocurrency:

  • Mining is performed in the same way, albeit using different functions.

  • There is no external control due to the decentralized type of network.

  • Both cryptocurrencies have a limited supply of coins.

  • The anonymity of both wallet owners and miners. Complete freedom of disposal of funds on the wallet.

  • A transaction cannot be undone.

Thus, it can be said that differences from Bitcoin make Litecoin a distinctive digital currency capable of expressing itself in the future.

What about disadvantages?

However, negative factors also exist:

  • With the creation of ASIC-miners, it is more difficult for ordinary users to mine cryptocurrency, and power is concentrated in the hands of large companies.

  • The failure of the LitePay service dealt a serious blow to the popularity of the virtual coin. The developers planned to create a system that had different integration with Visa. Despite the active work and the investment of a large amount, the project was not able to start. In the company, no one could explain what the money was spent. The scandal undermined the credibility of the digital coin.

  • Interdictions at the level of state authorities. Many states cannot decide on the status of digital money. Laws are either not released or are in development process. Only a small number of countries have completely legalized cryptocurrencies.

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How to invest in Litecoin

The easiest answer is to do it through exchanges.

Most investors and traders purchase Litecoin for US dollars or BTC (Bitcoin). Since different trading platforms have different trading or purchasing power, be sure to check whether your exchange supports transactions in US dollars or BTC for LTC.

LTC logo
‘Litecoin with man using a tablet computer‘ Image by 123rf

As a rule, the best option is to use a large trading platform, such as Binance (where you can exchange BTC for LTC) or Coinbase (to use a credit or debit card in US dollars).

However, since the cryptocurrency market is a large and, moreover, unregulated industry, it should not be viewed as the same type of investment opportunity as shares of stocks, bonds, or other securities. In fact, traders and investors should consider lots of factors when investing (especially given the volatility of digital assets in recent months).

Ways to earn Litecoin

Besides investing, there also other options to get LTC:

  • Mining. Litecoin is still in its heyday, as was once Bitcoin. With the help of the computing power of a personal computer, it is still possible to actually generate new coins.

  • Cloud mining. The client rents the computing power that Litecoin uses to generate the coins. However, this is a controversial decision. After all, this practice means that landlords of personal computers get more profit than the mining of Litecoin itself.

  • Litecoin cranes. Cranes are advertising sites where a user must enter a captcha and receive a small amount. It is difficult to call it a serious earning as for the whole day you can get only a couple of dollars at best.

Comparing all options, we can say that active mining remains the main method of obtaining LTC.

Technical analysis features for 2019

Since the bottom of Litecoin marked by Charlie Lee has already been passed, you can pay attention to the prospects for further development of the project. As of April 17, 2019, the cryptocurrency chart looks the following way:

 Litecoin chart
Image by Tradingview

It is important to pay attention to the level of $80 – it can be considered as an important support zone, consolidating at which can open the way to growth. Given the damage caused by the protracted fall, it is crucial to clarify that before the beginning of the active growth phase Litecoin should (just like other representatives of the cryptocurrency market), go through the recovery stage. As a rule, it is expressed in a prolonged neutral-positive movement.

The first half of 2019, in the wake of the shocks experienced by market participants, may become a consolidation period. The transition to the bullish movement can be supported by plans of entering the industry of Bitcoin ETF, the opening of the Bakkt platform and a number of other events that can attract serious investment flows.

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Selling coins for the community’s benefit

Charlie Lee, the creator of Litecoin, sold all his LTC to avoid accusations about the impact on the rate of the coin. This action was intended to make Litecoin an even more decentralized currency. And, despite the fact that after the sale of coins, the Litecoin exchange rate fell, in the long term, such a decision by the creator of cryptocurrency can bring him multiple benefits.

“For a currency to really be … a worldwide decentralized currency, you can’t have … a real leader who’s trying to control things, so to make it more decentralized, eventually I would step away,” said Charlie Lee.

Litecoin showed its record maximum at the moment in December 2017, when one coin cost $374. After its creator sold all of its assets, the price of the altcoin plummeted, and Lee was subjected to unflattering criticism from users. Many experts also called this move frankly unsuccessful. However, such an ambiguous act can really become the basis for creating the most decentralized digital currency.

In any case, this suggests that Litecoin has a strong developer, strategist, and leader who has a clear motivation and strategy for action. Charlie Lee is engaged in the development of his project, regardless of the value of the currency, and it definitely has a good effect on loyalty to its product from users.

Litecoin forecast for 2019: What analysts say

In the first six weeks of 2019, LTC’s rate went up to a new high, where it is currently trading at around $79.

From August 8, the miners' remuneration will fall from 25 to 12.5 LTC. The reduction in mining income will lead to a weakening of interest in mining of the cryptocurrency. In this situation, the fall in the supply of coins is expected to be approximately double.

According to analysts, the rate of LTC will rise approximately until the beginning of August, when the project will reduce the reward for the mining of coins. At the moment, the cryptocurrency is in 6th place in the rating of the largest digital assets – its rate exceeds $75 with a market capitalization slightly above $ 4.8 billion.

Tom Lee, CEO of Fundstrat Global, is confident that by the end of the year, the rate of the coin may grow by 640%.

Forbes logo
‘Forbes website homepage‘ Image by 123rf

Forbes analyst Billy Bambro said that the 6th largest market capitalization of Litecoin cryptocurrency (LTC) will be ahead of XRP by the end of the year and will take 3rd place.

Although cryptocurrency prices are still far from its previous highs, LTC has managed to double its rate since the beginning of 2019.

Bambro believes LTC pricing is a response to the active efforts of the Litecoin Foundation and developers to improve coin security and privacy, in addition to choosing several well-known partners.

The eToro analyst team, led by Mati Greenspan, conducted a serious study of Litecoin. According to its report, the current cost of LTC is significantly underestimated.

The experts note that Litecoin has good network scalability compared to Bitcoin, fast and low-cost transactions and ongoing technological improvements by the Charlie Lee team: atomic swap, Lightning Network, SegWit.

Thus, when making an analytical forecast for Litecoin for 2019, experts take into account all the factors that contribute and increase the popularity of a crypto asset in the future, and also expand its attractiveness in the eyes of investors and the public.

These include:

  • Litecoin functionality → recognition of real practical use

  • Litecoin's technical superiority → faster transaction speed, lower cost, and easy scalability using Segwit and Lightning Network technologies

  • Litecoin decentralization and representativeness → high user confidence and excellent online rating

Among the factors that led to the growth of Litecoin are Microsoft’s plans to create a platform for decentralized processing and storage of digital identification data based on blockchain technology. And Litecoin has become one of those ecosystems that the company considers potentially suitable as the basis of this large-scale project.

These and other advantages of the Litecoin network find a positive response in Litecoin’s forecasts for 2019, and analysts predict a permanent increase in the price of  the cryptocurrency in the May-July period.

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So, what is the decision?

Over the years, Litecoin consistently follows Bitcoin, keeping a little distance from it. The stability of the project is complemented by an important advantage – the coin appeared much earlier than other coins in the capitalization rating. The presence of history allows you to create a “safety cushion” in the form of trust, which is still rare on the cryptocurrency market. Accordingly, Litecoin may well be considered as a good option for investment.

All in all, Litecoin is worth investing in. The top management of the project is actively working on improvements that allow maintaining high positions of “digital silver” in the capitalization rating. In addition, it is likely that in the near future the bear market will completely end, passing the green light to the bulls. This makes investing in the cryptocurrency promising.

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