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 along with its users.
A more recent survey revealed that there are now more than 45 million blockchain wallet users. 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, 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 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.
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.
Hence, blockchain technology market value, beyond cryptocurrency and Bitcoin, has been steadily rising—it is now expected to reach $23.3 by 2023.
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 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.
Data access and sharing40%
Tracking and tracing32%
Source: StatistaDesigned by
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.
Industrial Products and Manufacturing12%
Energy and Utilities12%
Retail and Consumer4%
Entertainment and media1%
Source: StatistaDesigned by
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:
Because of these benefits, companies are recognizing blockchain’s potential if used as the core technology in various operations. According to , 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.
New business models and value chains23%
Greater security/lower risk23%
Greater speed compared to existing systems17%
Improving identity control9%
Source: DeloitteDesigned by
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.
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, 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.
Source: BloombergDesigned by
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. They come in various forms and support different cryptocurrencies.
|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:
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 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.
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.
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.
In fact, $6 billion worth of Bitcoin transactions are conducted daily. 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
The majority of Bitcoin nodes are running in the United States, 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.
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.
US Dollar (USD)70.92%
Japanese Yen (JPY)17.69%
Turkish Lira (TRY)1.83%
Korean Won (KRW)1.66%
British Pound (GBP)1.47%
Polish Zloty (PLN)0.24%
Russian Ruble (RUB)0.22%
Canadian Dollar (CAD)0.20%
Brazilian Real (BRL)0.07%
Source: CoinhillsDesigned by
A large number of Bitcoin users and traders are male. This correlates with the fact that men still dominate the financial markets, 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
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
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