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Cryptocurrency v2

UK - 1 Month(s)

Despite volatility over the last year, the statistics below make it clear that consumers are committed to crypto. Bitcoin is by and large the most popular cryptocurrency, with 75% of crypto owners reporting they own Bitcoin as of June 2022. 

In assessing the current state of the crypto market, it’s important to remember that it’s still a new and speculative investment. As informative as these statistics are, no one really knows what to expect in the future. As an investor, the best approach to crypto investing is allocating a small amount of your portfolio to crypto. When it comes to long-term investing goals, prioritizing more traditional assets like index funds or ETFs can keep your portfolio balanced and poised for success.

To that end, here are some noteworthy cryptocurrency facts to be aware of.

1. The global market capitalization for all cryptocurrencies is $1.17 trillion in March 2023. (CoinGecko x Statista)
2. There are over 420 million crypto users worldwide in 2023. (TripleA)
3. There are around 23,000 cryptocurrencies as of 2023. (Coinmarketcap)
4. 268,971 Bitcoin transactions took place daily in September 2022. (YCharts)
5. Bitcoin’s total market capitalization is $524.35 billion as of March 2023. (YCharts)
6. The global blockchain technology market is expected to surpass $67 billion by 2026. (MarketsandMarkets)
7. 68% of U.S. crypto owners own over $1,000 in crypto assets in 2022. (TripleA)
8. There were 264,360 daily transactions of Bitcoin as of July 2022. (Coin Metrics)
9. The average daily cryptocurrency trading volume was $103 billion in September 2022. (CoinGecko)
10. Bitcoin dominates 39.45% of the total cryptocurrency market capitalization. (CoinMarketCap)
11. Between 2012 and 2021, the price of Bitcoin increased by more than 540,000%. (TripleA)

Below, we outline some more specific facts about cryptocurrency. 

While consumer interest in the crypto market remains high, the market has suffered significant fluctuations over the last nine months. Amid surging inflation, a volatile stock market, and hiked interest rates, Bitcoin and Ethereum are still recouping their losses after falling from all-time highs in November 2021. 

While volatility is to be expected in a still-evolving industry like crypto, it’s impacted more by the state of the economy at large than by a declining interest in the crypto ecosystem. 

While current Bitcoin prices are far from the highs seen in November, Bitcoin has still steadily risen in value over the years. And with other leading virtual currencies like Tether, Ethereum, and Litecoin making a mark on the market, crypto ownership shows no signs of slowing down. 

Given the 15% rate of adoption among U.S. consumers has stayed the same since June 2021, we can see cryptocurrency ownership and purchasing intent have held steady. With 1 in 6 U.S. households owning cryptocurrency in June 2022, crypto is likely here to stay.

1. The size of the Bitcoin blockchain has steadily risen in the last decade, reaching 406 GB in size in July 2022. (Blockchain)
2. For the first time ever, the Ethereum market capitalization surpassed $250 billion in April 2021—half of what it was in August 2020. (CoinMarketCap x Statista)
3. Ethereum had a market capitalization of $194 billion in September 2022, the second highest after Bitcoin. (CoinGecko)
4. Ethereum had a global market capitalization dominance of 20.24% in September 2022. (TradingView)
5. As of September 2022, the three largest cryptocurrency exchanges are Binance, OKX, and FTX. (CoinGecko)
6. The 510 crypto exchanges had a total daily trading volume of $118 billion in September 2022. (CoinGecko)
7. Decentralized finance (DeFi) had a market capitalization of roughly $48 billion in September 2022. (CoinGecko)
8. In Q2 2022, Bitcoin maintained roughly the same dominance of 46.8% seen in Q1 2022 across the crypto landscape. (CoinGecko)
9. As of September 2022, Bitcoin’s market dominance has fallen slightly to 40.72%. (TradingView)
10. In Q2 2022, Ethereum’s market dominance fell from 21.4% to 16.3%. (CoinGecko)
11. As of September 2022, Ethereum’s market dominance has risen since Q2 to 20.24%. (TradingView)
12. Tether had a market dominance of 6.82% in September 2022. (TradingView)
13. The top 10 centralized crypto exchanges saw $3.25 trillion in trading volume in Q2 2022. (CoinGecko)
14. The market share for crypto exchange Binance grew to nearly 50% in Q2 2022, totaling $1.3 trillion. (CoinGecko)
15. Bitcoin and Ethereum made up over half of the entire crypto market in 2021. (TradingView)
16. By the end of 2021, Ethereum was traded over 1.1 million times a day. (Coin Metrics)
17. The total market capitalization for all types of crypto excluding Bitcoin was $644.4 billion in September 2022. (CoinMarketCap)
18. The daily average trading volume for all types of crypto excluding Bitcoin was roughly $32.5 billion in September 2022. (CoinMarketCap)
19. Bitcoin reached roughly 89% of its maximum supply in April 2021. (Statista)
20. There were 19 million Bitcoin tokens in circulation in August 2022. (Messari x Statista)
21. The blockchain market value reached $4.9 billion in 2021. (MarketsandMarkets)
22. As of September 2022, 84.6 million unique Blockchain.com wallets (that is, the vehicle used to buy and store Bitcoin) have been created. (Blockchain)
23. There are 38,738 crypto ATMs in the world. (Coin ATM Radar)

Now that you have a grasp on the size of the crypto market, you might be wondering how many people use cryptocurrency and how many people are invested in crypto. We cover these cryptocurrency demographics and more in the section below. 

Data on cryptocurrency demographics shows that crypto is largely owned by younger Americans. To that end, you might’ve heard of the “crypto bro” stereotype, and while it’s true that crypto owners tend to be younger, white, and male, crypto owners come from all walks of life. In fact, they’re a more ethnically diverse group compared to the general population. 

1. In 2022, just 28% of crypto owners in the U.S. are women, while 72% are men. (Morning Consult)
2. The average crypto owner is most likely to be wealthier and younger than the average U.S. adult. (Morning Consult)
3. In 2022, 80% of all crypto investments are owned by millennials and Gen X. (Finder)
4. 44.3% of all crypto investors are millennials. (Finder)
5. 28.6% of all crypto investors are Gen X. (Finder)
6. 17.8% of all crypto investors are Gen Z. (Finder)
7. In May 2022, 44.4% of cryptocurrency owners said they expected their personal finances to improve over the next 12 months, compared with only 27.1% of all U.S. adults and 29.5% of high-income adults. (Morning Consult)
8. American crypto owners own $1,003 in crypto on average. (Finder)
9. The average crypto owner has an annual income of $25,000. (Finder)
10. 44% of U.S. cryptocurrency owners have an annual income of $100,000 or more. (TripleA)
11. Of Americans with an annual income of less than $50,000, just 18.6% own cryptocurrency. (TripleA)
12. 82% of U.S. cryptocurrency owners are between the ages of 18 and 44. (TripleA)
13. Just 9% of Americans age 55 and older own cryptocurrency, making them the least likely age group to own crypto. (Finder)
14. 66% of U.S. cryptocurrency owners hold a bachelor’s degree or higher. (TripleA)
15. 22% of U.S. cryptocurrency owners are still in high school. (TripleA)
16. 81% of U.S. adults report they’ve heard of cryptocurrencies in 2022, a significant increase from 69% who said the same in 2020. (TripleA)
17. In the United States, men are 2.8 times more likely to own crypto than women. (Finder)
18. 58% of crypto owners are white. (Morning Consult) 
19. 23% of crypto owners are Hispanic. (Morning Consult) 
20. 41% of crypto owners identify as nonwhite. (Morning Consult)

Now that we’ve covered who invests in cryptocurrency, let’s take a look at cryptocurrency volume by country. 

While the United States sees significantly more crypto activity than nearly every other country, more countries across the globe are diving into cryptocurrency or seeing existing adoption increase. For many developing countries, cryptocurrency is a chance to increase financial inclusion and accessibility among unbanked populations. 

For citizens in countries with limited access to financial services, cryptocurrency can be an important investing and payment tool in lieu of any other good options. Crypto is increasingly pushed as a way to give more people access to the financial system because participants don’t need bank accounts, just a digital wallet, to engage in transactions. 

While the widespread adoption of crypto in such countries is still in its infancy, as is the establishment of regulations required to make it possible, it represents a monumental opportunity. Along with fighting corrupt financial systems and strengthening social trust through a more transparent system, crypto offers the chance for unbanked populations to save money and conduct daily transactions—a basic right in the way of financial security and inclusion.

1. An estimated 46 million people currently own cryptocurrency in the U.S.—13.7% of America’s population. (TripleA)
2. El Salvador became the first country to make Bitcoin legal tender in September 2021. (NBER)
3. In April 2022, the Central African Republic became the second nation in the world to make Bitcoin legal tender. (CoinDesk) 
4. Roughly 27 million people in India currently own cryptocurrency. (TripleA)
5. Roughly 26 million people in Pakistan currently own cryptocurrency. (TripleA)
6. Roughly 22 million people in Nigeria currently own cryptocurrency. (TripleA)
7. Roughly 20 million people in Vietnam currently own cryptocurrency. (TripleA)
8. 60% of cryptocurrency owners in Australia own Bitcoin in 2022. (Finder)
9. Cryptocurrency owners in Australia are the most likely to own Ethereum in 2022. (Finder)
10. Bitcoin made up 27% of crypto transaction values in the United Kingdom in June 2021, while Ethereum and Wrapped Ether (WETH) made up 40%. (Chainalysis)
11. Bitcoin made up 28% of crypto transaction values in Germany in June 2021, while Ethereum and WETH made up 36%. (Chainalysis)
12. Bitcoin made up 20% of crypto transaction values in France in June 2021, while Ethereum and WETH made up 45%. (Chainalysis)

A major characteristic of the cryptocurrency market is the widespread shift away from traditional financial institutions. This has given way to global tax transparency concerns that tax administrations must navigate as the crypto market continues to grow. With cryptocurrency tax regulations taking shape, it’s more important than ever that crypto investors understand just how their holdings are taxed.  

While understanding the tax implications of cryptocurrencies is still in its early stages, the IRS has made clear the need for a sound crypto tax policy. Much of this is seen in the new Infrastructure Investment and Jobs Act (IIJA) passed in the U.S. in November 2021, giving the IRS and U.S. Treasury power to establish tax reporting rules for cryptocurrency transactions starting in 2023. 

In 2014, the IRS declared that cryptocurrency is considered “property” for federal income tax purposes. That means crypto is taxed the same as other capital assets such as stocks, bonds, or property on their capital gains (for a deeper dive into cryptocurrency vs. stocks, read our guide here). Here’s an overview of what counts as a taxable event for cryptocurrencies: 

Taxable event Non-taxable event Selling crypto for cash Donating crypto to a tax-exempt charity or nonprofit Paying for goods or services Buying crypto and holding it Buying one crypto asset with another crypto (e.g., using Bitcoin to buy Ethereum) Transferring crypto between wallets Mining crypto or receiving mined crypto  Gifting crypto (for gifts up to $16,000) Being paid in crypto or via AirDrop   Receiving crypto rewards  

One consideration for crypto investors is the length of time you hold your assets. Your capital gains and losses will either be considered short term (the sale of assets held for less than a year) or long-term (the sale of assets held for over a year). Generally, tax rates for long-term capital gains are less than those of short-term gains. Because of this, investors can minimize crypto taxes by holding crypto for longer periods of time. 

That’s just one example of understanding how cryptocurrencies are taxed, but there are more considerations to be aware of. Review information and FAQs on the IRS website for a more thorough breakdown of what you need to know.

1. The IIJA passed in November 2021 defines “digital assets” for the first time in the Internal Revenue Code. (PwC)
2. The IIJA legislation related to digital asset gross proceeds reporting is effective for all crypto transactions occurring in 2023. (PwC)
3. The IIJA legislation amended the definition of digital assets to now include “cash,” requiring businesses to report any digital asset receipt that exceeds $10,000 in digital asset value. (Deloitte)
4. Closing the crypto tax reporting gap could result in an estimated $28 billion in tax revenues over the next decade. (The Joint Committee on Taxation x Deloitte)
5. Had they applied national tax rules to just one of the main cryptocurrencies, Bitcoin, the European Union (EU) could have captured tax revenues equivalent to $986 million in 2020. (European Commission, Joint Research Center)
6. Roughly 40 million Americans say the main reason they own crypto is to use it as a form of investment. (Finder)
7. Roughly 15.5 million Americans say using crypto as a form of payment is the main reason they own crypto, making it the second most common reason after investing. (Finder)
8. About 10.1 million Americans say the main reason they own crypto is to hedge against price volatility in traditional assets. (Finder)
9. In 2014, just seven countries had official cryptocurrency tax guidance in place, compared to 29 in 2022. (PwC)
10. 86% of countries included in a PwC analysis have tax guidance on the calculation of gains and losses on the buying and selling of crypto assets for individuals. (PwC)
11. As of 2021, no territories have issued formal guidance on the taxation of borrowing and lending in DeFi protocols. (PwC)
12.  While cryptocurrency was first launched in 2009, it wasn’t until 2014 that the Australian Taxation Office (ATO) published income tax guidance for investing and trading cryptocurrency. (PwC)

The deployment of crypto tax regulations might be in its early stages, but developments are expected to continue as the market continues to evolve.