Basics: Popularity

Popularity

How popular is cryptocurrency?

The use of cryptocurrencies has grown exponentially since its arrival in 2008, most recently seeing a large and sudden increase during the mid-2010s. The growth in popularity of cryptocurrencies has been mirrored by the amount of user choice, with over 600 cryptocurrencies in circulation at the end of 2016, and over 3000 at the end of 2019.

$1.5 billion

The Market Cap of all crypto rising from just over US$250 million leading into 2016, to over $1.5 billion at the end of 2019, doubling during 2017 alone.

The data collected through the Statistical Global Consumer Survey suggests over 5% of the population in established economies like the UK, Australia and France use or own some sort of cryptocurrency. While up to 20% of people in less established economies like Turkey, Brazil and Colombia.

Why the interest?

There are several reasons why investors are becoming more and more interested in cryptocurrency.Blockchain technology provides the central pillar to cryptocurrency functionality, as well as the reason for the bulk of its growing popularity.



Part of blockchain technology’s performance appeal is the security it provides. Blockchain’s technology’s ability to execute safe and secure transfers is a big part of the system’s growing status. Part of the secure nature of making cryptocurrency transfers is how blockchains work in conjunction with the unique public policing cryptocurrency relies on as an extra layer of security.

SecuritySecurityTransactions do not require users to even trust each other

The security provided with making transactions on a blockchain network means users can transfer cryptocurrency to each other without the watchful eye of a neutral third party, like a bank. It also means transactions do not require users to even trust each other.

Cryptocurrency is also being noticed by many for its potential as an international, borderless potential. Anyone wanting to transfer funds internationally would usually have to wait for days before the arrival of their funds, often incurring steep fees from the banking institutions the transfer request is executed. Even domestically, transferring fiat funds stored in a bank from one person to another living in the same house with funds stored in a rival bank can take days and cost the sender a rude sum in fees.

Even domestically, transferring fiat funds stored in a bank from one person to another living in the same house with funds stored in a rival bank can take days and cost the sender a rude sum in fees.

While bank transfers can take days to clear, blockchain-based transfers are extremely fast, usually completed within minutes.

The exclusion of banks in the process of transferring cryptocurrency means there are less hands involved and the process of getting the funds to where they need to be is comparatively easy.

What else do blockchains offer?

Many have been attracted to the characteristics of cryptocurrency making it a fast and secure commodity to trade, specifically the digital framework making it all possible for the first time. The versatility of cryptocurrency comes with its in-person and remote use capabilities.



Much like a credit card, cryptocurrency can be transferred to another party on the spot, or to a recipient on the other side of the world. It can also be used for a variety of purposes beyond just currency. 

While blockchains function on a highly technical level, their attributes are easily understood and applicable in many applications. Developers have delved into the possibilities of blockchain technology to understand its capabilities beyond producing and transferring a means of currency. Blockchains can be used to transfer any type of digital information fast, securely and independently. 

This means a user can transfer information to a friend required to run a program of any kind, offering users unlimited possibilities. 

Perhaps the greatest incentive for creating a digital currency was a desire for decentralisation DecentralisationDecentralisation is the process of distributing and dispersing power away from a central authority. Cryptocurrency was first designed specifically as a means of achieving decentralised status, removing the need for third-party involvement from banks and financial institutions..
Peer-to-peer (P2P) digital protocol takes the place of an overarching in-charge government authority, meaning cryptocurrencies are supposedly resistant to influence from overregulation and interference.

Basics: Popularity

FAQ

How many people use cryptocurrency?
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The data collected through the Statistical Global Consumer Survey suggests over 5% of the population in established economies like the UK, Australia and France use or own some sort of cryptocurrency. While up to 20% of people in less established economies like Turkey, Brazil and Colombia.

Why is cryptocurrency popular?
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There are several reasons why investors are becoming more and more interested in cryptocurrency. Its blockchain technology is a major part of cryptocurrency’s growing popularity because of the security it provides. It also means users can transfer cryptocurrency to each other without the watchful eye of a neutral third party, like a bank, and transfers are fast, borderless and versatile.

Is cryptocurrency only used as money?
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Blockchains can be used to transfer any type of digital information fast, securely and independently. This means a user can transfer information to a friend required to run a program of any kind, offering users unlimited possibilities.

Next step: Decentralisation

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Next step: <b>Decentralisation</b>