Bitcoin Forum

Bitcoin => Press => Topic started by: squatter on December 14, 2018, 08:00:48 AM



Title: [2018-12-12] Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled
Post by: squatter on December 14, 2018, 08:00:48 AM
In spite of the recent crash, some metrics from this year are looking pretty good. Amidst all the negativity about price, I was pleasantly surprised to discover this study which found that people are still rapidly joining the cryptocurrency space:

Quote
Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled

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

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.

Source: https://www.bloomberg.com/news/articles/2018-12-12/ranks-of-crypto-users-swelled-in-2018-even-as-bitcoin-tumbled


Title: Re: [2018-12-12] Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled
Post by: Slow death on December 14, 2018, 07:19:33 PM
this part where they say that some critics predict that bitcoin may fall to $0 should not be mentioned because I consider it madness of an immeasurable proportion, not even years ago price fell but did not reach $0 and today it has a very large community and that the price would reach  $0? this is crazy I'm also very happy to know that more people are entering the crypto world and I hope these people who are coming in now bring more people and believe that someday we will use bitcoin as a means of paying worldwide


Title: Re: [2018-12-12] Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled
Post by: Lucius on December 15, 2018, 11:17:20 AM
It would be interesting to find out how they came to these data, are they ask exchanges, banks or data are provided from other sources? Also it is strange that we have so many new users, and price is going down - which means that new users do not actually buy coins, but only opening accounts.

Maybe new users just wait to price drop even more to start buy, or it is just bad study with one target - launch some FOMO in crypto community. But it make sense, for any new investor who was thinking about investing in BTC this is time to act. However we are witnesses that people invest more at higher price then at such times.


Title: Re: [2018-12-12] Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled
Post by: Betwrong on December 15, 2018, 05:03:31 PM
It would be interesting to find out how they came to these data, are they ask exchanges, banks or data are provided from other sources?

It would be interesting for me too to check their methodology, but overall I think we can trust The Cambridge Centre for Alternative Finance because it's a reputable organization and they know how to conduct a research.

Also it is strange that we have so many new users, and price is going down - which means that new users do not actually buy coins, but only opening accounts.

I think new users do buy coins, but they buy $100-$200 worth of them in most cases, while some people are selling by millions these days. And it's not that they are doing so because they think Bitcoin will go to zero. They are doing so to support their coins which indeed can go to zero without the support. I think this mayhem will end in two months. But this is my personal opinion and it should be taken with a grain of salt.


Title: Re: [2018-12-12] Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled
Post by: Lucius on December 16, 2018, 11:57:47 AM
At first I was reminded on Facebook–Cambridge Analytica data scandal (https://en.wikipedia.org/wiki/Facebook%E2%80%93Cambridge_Analytica_data_scandal[/url), but it seems that link between these two organizations is just the city in which they are located.

I was curious about the original report since Bloomberg brings only the summons and I find this :

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Millions of new users have entered the ecosystem, but most remain passive
Total user accounts at service providers now exceed 139 million with at least 35 million identity-verified users, the latter growing nearly 4X in 2017 and doubling again in the first three quarters of 2018. Only 38 per cent of all users can be considered active, although definitions and criteria of activity levels vary significantly across service providers.

It means new users just sign up and do nothing, or maybe they buy very small amounts of coins which does not affect the global crypto market. I'm not sure this period could end for a few months, we are witnessing the beginning of each year is generally the worst period for cryptocurrency in terms of price.

This report also shows that only 38% of users are active, which would mean that roughly 60% of users do nothing except hold, and wait some better times.

For those who want to read more : 2nd Global Cryptoasset Benchmarking Study (https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/2nd-global-cryptoasset-benchmarking-study/)