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Number of Blockchain Wallet Users 2020: Breakdowns, Timelines, and Predictions

Category: B2B News
How many blockchain wallet users are there?
There were more than 41 million blockchain wallet users in the third quarter of 2019. The number continues to grow as new blockchain wallets and cryptocurrencies are introduced to the market, with Bitcoin leading the pack at $187.45 billion market cap.

Source: Statista

With more than 41 million users and growing, the interest in decentralized digital currency is undeniably permeating beyond the fringe technology bubbles from which it originated. Bitcoin popularized the use of blockchain technology, but an increasing number of cryptocurrencies are entering the market, each with a strong number of supporters. As such, the number of blockchain wallets is growing exponentially[1] along with its users. 

A more recent survey revealed that there are now more than 45 million blockchain wallet users[2]. The number of blockchain wallet users is expected to grow this 2020 as mobile accessibility improves rapidly. Furthermore, its acceptance in various markets and industries make it more attractive to consumers who are increasingly concerned with privacy. Litigation has been slow to protect customers[3], and blockchain technology is an attractive solution with its relatively secure structure and distributed nature.

In this article, we will take a deep dive into blockchain wallets and the technology that powers them. We will also explore how cryptocurrency is being accepted in various industries and its future in the following main categories:

Blockchain Technology Timeline

Blockchain technology finds its roots decades ago with W. Scott Stormetta and Stuart Haber. Their first work on a cryptographically secured chain of blocks is considered the earliest form of blockchain where no one can modify the timestamps of documents. Within the following year, they were able to incorporate Merkle trees, which allowed the blocks to accommodate more than one documents in one block.

However, it was not until 2008 that blockchain technology gained early traction through Satoshi Nakamoto’s work on the technology that powers Bitcoin, the first digital ledger technology. His white paper was then published in 2009.

New functionalities were then added to blockchain technology such as transactions, contracts, and more. It led to Vitalik Buterin’s development of Etherium when proponents wanted to resolve the limitations of Bitcoin.

By 2018, blockchain wallets have become available in the market, and digital currency gained enough attention with mainstream masses. The digital money only previously used in the Dark Web had by then become a legitimate (albeit in a limited manner) currency.

Blockchain Technology Market Value

Its security and privacy afford blockchain technology limitless possibilities. Its tamper-evident structure ensures consistency in its applications. Because it does not require financial intermediaries, such as banks, various businesses across different industries find it attractive, especially in trading, investments, and more. In fact, the financial sector is the quickest to adopt the technology[4].

Hence, blockchain technology market value, beyond cryptocurrency and Bitcoin, has been steadily rising—it is now expected to reach $23.3 by 2023.

Source: Statista

Blockchain Technology and Its Application in Various Industries

While Bitcoin is the most popular application of blockchain, this innovative technology can be used in various business and commercial applications. The elimination of the middle man in various transactions and processes promise a much more efficient workflow using blockchain. Additionally, increasing concerns about privacy and security make blockchain an ideal technological pipeline for modern processes. Organizations are now starting to adopt blockchain[5] across several uses cases. Unsurprisingly, the top three applications are data validation, data access, and identity protection. Digital currency only came at fifth behind payments.

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Blockchain Technology Uses Cases (as of April 2019)

Blockchain Technology Uses Cases (as of April 2019)
Data validation: 43%

Data validation

43%
Blockchain Technology Uses Cases (as of April 2019)
Data access and sharing: 40%

Data access and sharing

40%
Blockchain Technology Uses Cases (as of April 2019)
Identity protection: 39%

Identity protection

39%
Blockchain Technology Uses Cases (as of April 2019)
Payments: 37%

Payments

37%
Blockchain Technology Uses Cases (as of April 2019)
Digital currency: 36%

Digital currency

36%
Blockchain Technology Uses Cases (as of April 2019)
Tracking and tracing: 32%

Tracking and tracing

32%
Blockchain Technology Uses Cases (as of April 2019)
Certification: 30%

Certification

30%
Blockchain Technology Uses Cases (as of April 2019)
IP access: 30%

IP access

30%
Blockchain Technology Uses Cases (as of April 2019)
Record reconciliation: 25%

Record reconciliation

25%
Blockchain Technology Uses Cases (as of April 2019)
Asset transfer: 24%

Asset transfer

24%
Blockchain Technology Uses Cases (as of April 2019)
Revenue sharing: 23%

Revenue sharing

23%
Blockchain Technology Uses Cases (as of April 2019)
Asset-backed tokens: 22%

Asset-backed tokens

22%
Blockchain Technology Uses Cases (as of April 2019)
Tokenized equity: 21%

Tokenized equity

21%
Blockchain Technology Uses Cases (as of April 2019)
Tokenized asset: 20%

Tokenized asset

20%
Blockchain Technology Uses Cases (as of April 2019)
Time stamping: 19%

Time stamping

19%
Blockchain Technology Uses Cases (as of April 2019)
Custory: 16%

Custory

16%
Blockchain Technology Uses Cases (as of April 2019)
Not sure/other: 2%

Not sure/other

2%
Blockchain Technology Uses Cases (as of April 2019)
None: 1%

None

1%

Source: Statista

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Benefits of Using Blockchain Technology

As mentioned before, industries within the financial services sector were the first to implement blockchain technology. With cryptocurrency penetrating various markets, consumers and organizations are naturally inclined to test and adopt its various iterations and applications. Interestingly, even the entertainment industry is dipping its toes in blockchain technology.

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Application of Blockchain Technology by Industry (2018)

Application of Blockchain Technology by Industry (2018)
Financial Services: 46%

Financial Services

46%
Application of Blockchain Technology by Industry (2018)
Industrial Products and Manufacturing: 12%

Industrial Products and Manufacturing

12%
Application of Blockchain Technology by Industry (2018)
Energy and Utilities : 12%

Energy and Utilities

12%
Application of Blockchain Technology by Industry (2018)
Healthcare: 11%

Healthcare

11%
Application of Blockchain Technology by Industry (2018)
Government: 8%

Government

8%
Application of Blockchain Technology by Industry (2018)
Retail and Consumer : 4%

Retail and Consumer

4%
Application of Blockchain Technology by Industry (2018)
Entertainment and media: 1%

Entertainment and media

1%

Source: Statista

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What makes blockchain technology ideal for most business processes?

Blockchain provides key advantages natively, without having to extend its functionalities or using third-party extensions. Immutability, security, decentralization, and transparency are built right in the structure. Here are some of its primary advantages:

  1. Verification of information without the need for third-parties.
  2. Append-only data structure that ensures data consistency and even redundancy; data cannot be altered or removed.
  3. Secures data ledgers using cryptography—blocks are dependent on the adjacent blocks to complete the cryptography process.
  4. Chronological transactions are timestamped each time they are recorded.
  5. The ledger is distributed across participants ensuring data consistency.
  6. The decentralized nature increases protection against threats that would otherwise render a centralized hub and its entire ecosystem defunct.

Because of these benefits, companies are recognizing blockchain’s potential if used as the core technology in various operations. According to [6], the top commercial benefit of the technology is the possibility of new business models. It is followed by enhanced security and increased speed compared to currently used systems.

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Key Benefits of Blockchain Technology

Key Benefits of Blockchain Technology
New business models and value chains: 23%

New business models and value chains

23%
Key Benefits of Blockchain Technology
Greater security/lower risk: 23%

Greater security/lower risk

23%
Key Benefits of Blockchain Technology
Greater speed compared to existing systems: 17%

Greater speed compared to existing systems

17%
Key Benefits of Blockchain Technology
Greater transparency : 11%

Greater transparency

11%
Key Benefits of Blockchain Technology
Lower costs: 9%

Lower costs

9%
Key Benefits of Blockchain Technology
Improving identity control : 9%

Improving identity control

9%
Key Benefits of Blockchain Technology
Fraud reduction: 8%

Fraud reduction

8%
Key Benefits of Blockchain Technology
Unsure: 1%

Unsure

1%

Source: Deloitte

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Investment Issues in Blockchain Technology

Blockchain is not without its challenges. Much like any innovation, investment in large scale applications experiences significant barriers. Larger corporations are cautious in adopting new technologies; but, as it gains more acceptance in various industries, common barriers top blockchain adoption are already steadily decreasing.

For example, only 30% of organizations considered implementation as a major barrier in 2019 as compared to 37% in 2018. While the general trend in terms of adoption barriers is decreasing, more companies are worried about the sensitivity of competitive information and the lack of compelling implementation of the technology.

Market Value of Various Cryptocurrencies

One of the most popular applications of blockchain is cryptocurrency. This new form of digital medium of exchange allows users to conduct financial transactions, transfer assets, create additional units, and monitor them without the need for a third-party intermediary. Furthermore, these processes are conducted securely and privately.

While cryptocurrencies have experienced several rise-and-fall cycles over the last few years since their advent, their market capitalization has significantly increased. Unsurprisingly, Bitcoin is leading at $187.45 billion market capitalization[7], followed by Ethereum, XRP, Bitcoin Cash, and Bitcoin SV. It should be noted that these values are constantly updated as the market changes.

Source: Coin Market

Interestingly, new cryptocurrencies are competing with Bitcoin in terms of popularity. The former still remains the highest valued option, but Tether, Ethereum, and Litecoin are proving to be competitive in terms of daily trading volumes.

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Most Popular Cryptocurrencies by Daily Trading Volumes

Most Popular Cryptocurrencies by Daily Trading Volumes
Tether: 20,790,721,778

Tether

20,790,721,778
Most Popular Cryptocurrencies by Daily Trading Volumes
Bitcoin: 17,279,220,906

Bitcoin

17,279,220,906
Most Popular Cryptocurrencies by Daily Trading Volumes
Ethereum: 7,725,511,214

Ethereum

7,725,511,214
Most Popular Cryptocurrencies by Daily Trading Volumes
Litecoin: 2,548,778,107

Litecoin

2,548,778,107
Most Popular Cryptocurrencies by Daily Trading Volumes
Bitcoin Cash: 1,917,335,827

Bitcoin Cash

1,917,335,827
Most Popular Cryptocurrencies by Daily Trading Volumes
EOS: 1,767,251,156

EOS

1,767,251,156
Most Popular Cryptocurrencies by Daily Trading Volumes
XRP: 1,353,675,702

XRP

1,353,675,702
Most Popular Cryptocurrencies by Daily Trading Volumes
Tron: 705,376,875

Tron

705,376,875
Most Popular Cryptocurrencies by Daily Trading Volumes
Ethereum Classic: 568,570,716

Ethereum Classic

568,570,716
Most Popular Cryptocurrencies by Daily Trading Volumes
Paxos Standard: 367,122,707

Paxos Standard

367,122,707

Source: Bloomberg

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Blockchain Wallets

Trading in cryptocurrency is relatively easy compared to other assets. You can begin trading just by signing up for various wallets on the market. Furthermore, there are different types of wallets, each with their own advantages, such as levels of security, accessibility, and more. Mobile wallets have the most number of users due to its easy installation and mobility.

Currently, there are more than 140 cryptocurrency wallets available[8]. They come in various forms and support different cryptocurrencies.

Popular Blockchain Wallets

Blockchain Wallet Cryptocurrency Supported Platforms
Ledger Nano S 739 Hardware
Trezor Wallet 919 Hardware, Linux, Mac OS, Windows
Enjin Wallet 5 Android, iOS
ZebPay Wallet 6 Android, iOS
Wirex Wallet 7 Android, iOS, Web
SpectroCoin Wallet 4 Android, iOS, Web, Windows
KeepKey Wallet 150 Android, Hardware, Linux, Mac OS, Windows
CoinJar Wallet 5 Android, iOS, Windows, Mac OS, Windows phone
Jubiter Wallet 2 Android, iOS, Windows phone, Linux, Mac OS, Windows, Chrome extension
Coinbase Wallet 5 Android, iOS, Web

Additionally, it is much easier to deposit and withdraw funds through cryptocurrency wallets. The following are the most common methods:

Number of Cryptocurrency Users

Bitcoin ushered the era of cryptocurrencies in 2008, since then, the number of people buying and trading using digital money has significantly increased over the years. Asia-Pacific leads with the most number of cryptocurrency users[9] at 38% of the regional market share.

Source: We The Cryptos

Furthermore, Turkey, Brazil, Colombia, Argentina, and South Africa are the top five countries with the most crypto users by country. Interestingly, developed countries like Japan, Germany, France, the US, and the UK are towards the end of the list.

Source: Statista

On the other hand, the United States provides the most numbers of cryptocurrency wallets at 34%. This is highly likely due to its strong technology sector, bolstered by bustling hubs like Silicon Valley.

Source: Statista

How Much is Bitcoin?

Bitcoin prices are inconsistent at best. However, the general trajectory if its value is rising. Due to its value, it is still the most popular cryptocurrency in the market.  

Source: Leftronic

In fact, $6 billion worth of Bitcoin transactions are conducted daily[10]. Consistent with Bitcoin trends, the number of transactions vary per month. However, recent records show that Bitcoin is set to maintain around 300,000 transactions every month.

Source: Transaction Fee

Bitcoin Market and Its Users

The majority of Bitcoin nodes are running in the United States[11], with about 21% of the total nodes. It should be noted that new nodes are popping up almost daily across the world. Thus, this number changes rapidly every day. Interestingly, only China and Singapore hold the most number of Bitcoin nodes in Asia-Pacific, where the most numbers of cryptocurrency users are located.

Source: Bitnodes

It is no surprise that the US Dollar is the most common currency traded for Bitcoin. Most of the blockchain wallets use USD as their default trading currency. As such, more than 70% of Bitcoin had been traded from USD, so far.

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Common Currencies Traded for Bitcoin

Common Currencies Traded for Bitcoin
US Dollar (USD): 70.92%

US Dollar (USD)

70.92%
Common Currencies Traded for Bitcoin
Japanese Yen (JPY): 17.69%

Japanese Yen (JPY)

17.69%
Common Currencies Traded for Bitcoin
Euro (EUR): (5.40%

Euro (EUR)

(5.40%
Common Currencies Traded for Bitcoin
Turkish Lira (TRY): 1.83%

Turkish Lira (TRY)

1.83%
Common Currencies Traded for Bitcoin
Korean Won (KRW): 1.66%

Korean Won (KRW)

1.66%
Common Currencies Traded for Bitcoin
British Pound (GBP) : 1.47%

British Pound (GBP)

1.47%
Common Currencies Traded for Bitcoin
Polish Zloty (PLN): 0.24%

Polish Zloty (PLN)

0.24%
Common Currencies Traded for Bitcoin
Russian Ruble (RUB): 0.22%

Russian Ruble (RUB)

0.22%
Common Currencies Traded for Bitcoin
Canadian Dollar (CAD): 0.20%

Canadian Dollar (CAD)

0.20%
Common Currencies Traded for Bitcoin
Brazilian Real (BRL) : 0.07%

Brazilian Real (BRL)

0.07%

Source: Coinhills

Designed by

A large number of Bitcoin users and traders are male. This correlates with the fact that men still dominate the financial markets[12], especially in trading. 

Source: Transaction Fee

Additionally, most of them are young adults and adults. This reflects the user groups with the highest adaptability and technology. It also shows the user demographics who are comfortable using virtual currencies and ledgers.

Source: Transaction Fee

Future Predictions for Bitcoin

Due to Bitcoin being the poster child of cryptocurrencies, its popularity is unmatched by newcomers. Much like any unit of trading, it goes through rising and falling phases during its history.

Should you invest in Bitcoin?

Recent trends say “yes.” Bitcoin prices are expected to rise from $10,352.70 to $11,103.20 in one year—at its current performance, its earning potential is rated at +7.25% annually.

Source: Wallet Investor

 


References:

  1. ^The Number of Cryptocurrency Wallets Is Growing Exponentially
  2. ^Blockchain Wallet Users
  3. ^Does E-Commerce Have a Digital Privacy Problem?
  4. ^Distribution of Blockchain market value worldwide in 2018, by sector
  5. ^Blockchain technology use cases in organizations worldwide as of April 2019
  6. ^Deloitte’s 2019 Global Blockchain Survey
  7. ^Top 100 Cryptocurrencies by Market Capitalization
  8. ^Cryptocurrency Wallet List
  9. ^How Many People Own Cryptocurrency in the World?
  10. ^37+ Cryptocurrency Statistics [Updated March 2020]
  11. ^GLOBAL BITCOIN NODES DISTRIBUTION
  12. ^Boys will (still) be boys: Gender differences in trading activity ad are not due to differences in confidence
Louie Andre

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. From pitch deck to exit strategy, he is no stranger to project business hiccups and essentials. He has been involved in a few internet startups including a digital route planner for a triple A affiliate. His advice to vendors and users alike? "Think of benefits, not features."

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