The Number of Bitcoin Users: A Comprehensive Analysis
Since its launch in 2009, Bitcoin has become the world's best-known and most popular cryptocurrency, with more than 190 million users worldwide. However, the exact number of individuals holding Bitcoin is difficult to determine accurately due to various factors.
Estimating Bitcoin Users
According to estimates, approximately 1 million people or institutions currently own Bitcoin. This represents a significant potential for further adoption, as it suggests that there is a considerable amount of untapped demand for this cryptocurrency. If this figure is correct, it means there is around 9,000 times more money that could be transferred into Bitcoin compared to what has already been transferred as of 17 February 2023.
Challenges in Accurate Estimation
Accurately estimating the number of Bitcoin users is a complex task. Millions of Bitcoin wallets have been created on various exchanges, but it's unclear how many wallets belong to individual users. This ambiguity makes it challenging to provide a precise count. Furthermore, reliable statistical information is often scarce or absent, primarily due to the decentralized nature of Bitcoin and the lack of central authority tracking user data.
Even when data is available, such as survey results or the number of Bitcoin wallets, significant methodological uncertainties can cast doubt on their reliability. For instance, surveys that focus on local user populations, like in the United States, can provide useful insights but may not be generalizable to other countries or alternative cryptocurrencies like Ethereum (ETH).
Recent Research and Trends
Recently, there has been a surge in the number of studies and surveys attempting to address this question, particularly in the United States. These reports predominantly focus on local Bitcoin users and may not be easily extrapolated to other countries or other cryptocurrencies. One notable example is a new survey that provides insights into Bitcoin adoption patterns. As Bitcoin becomes more widely adopted, similar research efforts are likely to expand to cover a broader range of global users.
Defining a "Wallet"
The concept of what constitutes a "Bitcoin wallet" is also crucial. For many individuals, the management of Bitcoin is outsourced to third-party services like Coinbase, which significantly deviates from the original concept of Bitcoin as a “bank in your pocket.” In a strict sense, only wallets created using Bitcoin Core (QT) or Hierarchical Deterministic (HD) wallet software should be considered true wallets. When these wallets are subtracted from the total, the number of actual Bitcoin users drops considerably below the 23 million figure often cited.
It's worth noting that this trend is reflective of broader financial habits, where the majority of the population does not own physical gold or other precious metals. Only a small percentage of the population holds significant amounts of these assets, similar to the situation with Bitcoin. While the precise number of Bitcoin users remains elusive, the narrative of gradual adoption and increasing relevance of the cryptocurrency is clear.