It is no secret that many people are drawn to the promise of quick and massive gains that come with investing in cryptocurrencies and other kinds of digital assets. For some, the appeal lies in the potential for making big money quickly, especially since many cryptocurrencies are currently in a state of positive transition, meaning the value is relatively high, in some cases even appreciating, compared to traditional fiat currencies such as the U.S. dollar or euro. For many others, the allure is grounded in the potential to create a more streamlined and transparent global economy, where value can be transferred directly and securely from one party to another without relying on third parties such as banks or governments to act as arbiters of truth and keep the system stable. Finally, there are those who see the rise of numerous cryptocurrencies as a potential threat to the very established order and could even see the invention of crypto as a sort of ‘digital Occupy Wall Street‘ movement, aimed at bringing about political and social change.
When it comes to figuring out who exactly is using Ethereum (ETH), the most popular, decentralized platform for both storing and transferring value using cryptography, it is important to note that the answer will vary from person to person. As with any other question surrounding the usage of cryptocurrency, there is no single, definitive answer. However, by looking at a number of different metrics, some interesting trends can be ascertained. Let’s take a look.
The Evolution Of Crypto Investment
For years, many have turned to the stock market, particularly the Nasdaq, to play the role of safe haven for their investment dollars. However, over the last two years, there has been a steady drift toward alternative investment vehicles, namely initial coin offerings (ICOs) and cryptocurrencies, due largely in part to increased volatility and market irregularities that have come to define the traditional stock market. In fact, according to Deloitte, about 71.5% of investment firms are now incorporating cryptocurrencies into their portfolios, up from about 16% in 2017.
In terms of the evolution of cryptocurrency investment, one of the most interesting things to note is the ‘Y‘ generation, also known as Millennials. Despite its relatively young population (people between the ages of 18 and 34), this group is already leading the way when it comes to embracing new technologies and trying new things. Specifically, 70% of adults between the ages of 18 and 34 have or are considering purchasing cryptocurrency, compared to 50% of adults aged 35 and over, according to a recent study from the NPD group. What’s more, 40% of this particular group have or are planning to invest in a cryptocurrency platform, such as Ethereum, compared to about 30% who are planning to invest in a cryptocurrency wallet, such as MyEtherWallet.
Who Is Using What?
One of the best places to get an idea of who is using Ethereum is from a list of top crypto wallets, showing the various desktop and mobile applications that store and display the various cryptocurrencies, along with associated perks. It is important to note that this list is not exclusive, as dozens of other wallets, both mainstream and more crypto-focused, are available for download. It simply means these are the top choices for storing Bitcoin (BTC), Ethereum (ETH), and other supported cryptocurrencies at the moment. Keep in mind, the list of top crypto wallets is constantly changing as more people discover the advantages of alternative investment vehicles.
Of the top crypto wallets, MyEtherWallet, for example, is one of the most popular choices among mainstream users, while other wallet providers, such as Coinbase and Circle, have focused on professional traders and other kinds of users interested in greater security and privacy. As a result, these two wallets are now owned by some of the biggest players in the industry, including Coinbase by JP Morgan Chase & Co., and Circle by investors, including the Chinese conglomerate, DDG.
How Is The Value Of Bitcoin (BTC) And Ethereum (ETH) Changing
While many investors are looking toward the future with excitement regarding cryptocurrency investment, wondering whether or not the price of ETH and BTC will increase or decrease in value, it is important to look at the recent past to get a better idea of the present and the future of cryptocurrencies. If we look at the price of bitcoin over the last two years, it has risen from about US$3,750 to over $13,000, an increase of about 462%. Similarly, the price of Ethereum over the last two years has increased from about $1,220 to over $7,600, an increase of about 554%. To remind you, these are not investments we recommend, as prices can be extremely volatile and prone to short-lived fluctuations. But for those who look at the broader picture, the increase in value is very apparent.
When Will The Value Of Bitcoin (BTC) And Ethereum (ETH) Reach Its Peak?
There are a number of different metrics that can be used to determine the value of cryptocurrencies, including market capitalization and adjusted market cap (AFC), as well as lookback pricing and midpoint pricing. For our purposes, let’s focus on market capitalization and adjusted market cap, as this is what many people will use to determine the true value of cryptocurrencies, and it gives us the clearest picture of whether or not the overall market is becoming more valuable or less valuable over time. Note, if you’d like to learn more, we recommend checking out the following articles:
- Market Capitalization vs AE CAC: A Complete Comparison
- What Is Market Capitalization? How to Calculate It & Why It Matters
- How to Value Bitcoins: An Introduction to Market Capitalization
- Why I Don’t Use Market Cap to Value Ethereum
- What Is CAC and How to Calculate It
- Vulnerabilities of CAC
- A Primer on Market Cap (CAC): A Measure of Cryptocurrency Value
- The Future of Money: CAC
Which Countries Are Using Crypto The Most?
Another good place to get a gauge of who is using and investing in cryptocurrencies is from a list of the top countries, showing the various desktop and mobile applications that store and display the various cryptocurrencies, along with associated perks. Looking at the countries where Bitcoin (BTC) is most used and valued, as shown from the CoinDesk Bitcoin Country Size Index, the United States currently leads the way, as about 41.2 million people use BTC, while India follows with about 33.5 million users and the value of BTC is about US$7,721 per person, based on the CoinDesk Bitcoin Price Index (BPI). Interestingly, even though the United States leads the way in terms of the number of people using BTC, it does not necessarily follow that all American adults are embracing cryptocurrency. As mentioned, about 71% of adults, including 40% of millennials, are now considered crypto investors. However, only about 4% of U.S. adults currently hold cryptocurrency, compared to 2% in Britain and 1% in Canada. While the United States is home to some of the largest cryptocurrency exchanges, including Coinbase and Gemini, the adoption rate and integration of cryptocurrency remains a challenge for many industries, including financial services.