Bitcoin Price May Be in the Gutter, but Crypto Users Increase Throughout Industry
It’s impossible to speak of the cryptocurrency industry right now without turning to the horrific slump of both Bitcoin and nearly every altcoin on the market. There are so many actions that have taken place that consumers want to blame, ranging from the hard fork of Bitcoin Cash to the increasingly aggressive actions of the SEC against new crypto startups. However, the interesting part about these changes is that investors have been steady, and the numbers have even increased during this time.
Based on a study performed by the Cambridge Centre for Alternative Finance, Bitcoin came down nearly 80% since its high on December 17th, 2017, trading at $3,416.88 at press time. However, the total verified users presently on the market is nearly double what it was for the other three quarters of 2018, rising at the same time that Bitcoin has taken its largest dip of the year.
The researchers allege that the increase in user numbers during this downtrend could be a sign of impending recovery. Bloomberg states that this is “a crucial finding at a time when some critics predict that the value of cryptocurrencies will go down to zero.”
Speaking on the users that comprise of this group, the study’s authors said,
“Conforming with popular narratives, survey data indicates that the majority of users – both established as well as new entrants – are individuals and not business clients. Individuals can be hobbyists, retail investors, consumers, or users seeking a better investment or payment alternative.”
Though the number of accounts increased as well, this doesn’t mean that there are more users, since each user has the ability to hold multiple accounts. Still, the study noted,
“Growth rates were at their highest in 2017, and the number of new user accounts as well as ID-verified users continued to rapidly grow in 2018 as well.”
Presently, there is still several billion dollars standing between the lowest market capitalization of the year, though it is still regressed to the levels it stood at in August last year. There’s been $700 billion eradicated from the market, but experts believe that the recovery period will bring it back, even if it takes a few months as the industry eases into 2019.