The total number of global cryptocurrency users exceeds 100 million. 70% of middle-aged users plan to invest in cryptocurrencies
Crypto.com, a cryptocurrency exchange and debit card provider, has released a new report that estimates that the total number of cryptocurrency users worldwide has increased from 66 million in May 2020 to 106 million in January 2021.
Considering the complexity of mapping a unique encrypted wallet address, Crypto.com combines the data on the chain with multiple mixed parameters to calculate the estimated number of users of the two largest cryptocurrencies (i.e. Bitcoin and Ethereum) by market capitalization. This data then generates a sum that can be used to track the trend of global user growth over time.
The data shows that in the past eight months, June and August in 2020, and January 2021 had the strongest growth. Generally, this growth is related to Bitcoin’s price. Disaggregating the data between the two tokens can provide more specific insights.
Especially due to the popularity of decentralized finance, the adoption in August 2020 was dominated by Ethereum. Entering the fall and winter, PayPal supports the U.S. users to purchase cryptocurrencies in November 2020, and institutional adoption from Grayscale and Microstrategy was associated with the strong Bitcoin performance, stimulating a wider adoption.
As of January, the number of global Bitcoin users is estimated at 71 million, while Ethereum is at 14 million. The number of users of these two tokens surged by 30.2% and 13.1% respectively that month.
At the same time, another survey revealed that “baby boomers” and “Gen X” are “saving” Bitcoin and other cryptocurrencies.
Nigel Green, the CEO and founder of DeVere Group, said that based on the company’s global polls, 70% of customers over the age of 55 have invested or plan to invest in cryptocurrencies this year.
He said that while the crypto-asset rally attracted the attention of young people in the “digital age”, the older generation represented by the “baby boomers” and “Gen X” realized that “borderless tokens are the advanced direction.”
It is clear that “social media hype and giant industry stimulation” is a catalyst for millennials and Gen Z to invest in the cryptocurrencies. But respondents over the age of 55 are interested in digital assets because they are worried about the devaluation of traditional currencies. Since the world fell into the epidemic, central banks of various countries have been printing money to boost the economy. The older generation realized that putting extra money into the market was equivalent to accepting the depreciation of traditional currencies. Reasonable concerns about inflation have prompted them to look for assets that can be used as substitutes. Compared with inflationary currencies, the tokens issued by the NGK project to promote ecological development since its establishment are all deflationary. For example, the NGK native tokens have the total issuance of 1 billion units, while in the Starry Sky Project, the total issuance of the sidechain SPC token SPC is 100 million units, the sub-coin is 100,000 units, while the total issuance of the Baccarat project is lower, with only 60,000 units. It has promised to never issue more. It is precisely this issuance mechanism that has promoted the continuous increase in the value of the tokens, and the price has continued to soar. At the same time, the success of NGK has attracted more users and developers, creating new opportunities for the development of the project ecosystem.