What percentage of people own Bitcoin

How many Bitcoin users are there?


How many people own bitcoins?

Nobody will ever know.

The most common way to estimate the number of Bitcoin owners is to look at the amount that is being held at the various addresses. There are three main problems with this method:

  • One person can have many addresses and wallets. For example, a person could have 1 BTC on their iPhone and 0.5 BTC on their laptop. If we treated each address as one person, it would count as two people when in reality it is only one. Many people have several hundred addresses and 3-10 different wallets.
  • Services can store bitcoins in one address that belongs to several people. Bitfinex, for example, holds 100,000+ bitcoins in one address. Bitfinex is a Bitcoin exchange with millions of customers. If we treat each address as one person, it would be considered one person, but would actually represent the bitcoins of many thousands of people.
  • Many people do not move bitcoins from the exchange. Many people use centralized services and never create a Bitcoin wallet.

The second common way to estimate the number of owners is to look at the exchanges and find out the number of accounts. There are three main problems with this method:

  • Inactive accounts. Some customers open an exchange, buy bitcoins and later sell them. This is still considered an account in the exchange's data, but the account does not actually have any bitcoins.
  • Other coins. Many exchanges offer other cryptocurrencies. A user could log in and only buy Litecoin, but not Bitcoin.
  • Multiple accounts. A user can have an unlimited number of exchange accounts. For example, a user can have an account with Coinbase, Kraken and Gemini.

A recent poll found that 11% of Americans own bitcoin, which would mean about 30 million bitcoin owners in America.

Another study found that around 5% of Europeans own bitcoins (37 million owners).

Taken together, these two studies alone would estimate the total number of BTC owners in America and Europe to total ~ 67 million. However, there are only ~ 20.5 million Bitcoin addresses with Bitcoin worth more than $ 1.

So the total number of Bitcoin owners depends on how we want to define "own". If owning Bitcoin means keeping Bitcoins worth at least $ 1 in your own wallet, there can't be more than ~ 20.5 million owners.

However, if owning bitcoins involves keeping at least $ 1 worth in a central exchange or wallet, the numbers published in the aforementioned surveys seem reasonable. And the truth is, most bitcoin owners have their coins probably keep in centralized services.

A study suggests ~ 25 million cryptocurrency traders outside of the US and Europe, so there are likely over 100 million Bitcoin owners.

If that's true, it means that around 1.3% of the world's population owns bitcoins.

How many daily users of bitcoins?

This section will be On-chain-Bitcoin users treated. This does not include transactions that take place on exchanges or centralized services.

The Bitcoin network processes around 300,000 transactions per day. This number is deceptive because a transaction can have multiple recipients.

There are only between 300,000 and 500,000 active addresses per day. That means there are likely to be 300,000 to 500,000 unique users either sending or receiving Bitcoin.

Note: Many people use Bitcoins every day to save. A user who has invested their money in Bitcoin "uses" it to invest or save, but does not necessarily make a transaction every day. That's why we also have to look at the number of bitcoins in the wallets.

How many Bitcoin wallets are there?

Nobody will ever know.

We must first define the term "Bitcoin wallet". A wallet with currently stored bitcoins? Does a wallet that has received Bitcoins, sent them and is now empty count as a wallet? Does an exchange that enables the sending / receiving of bitcoins count as a wallet?

Coinbase claims to have more than 30 million accounts, whereas Blockchain.com claims to have 45 million wallets. Together that's at least ~ 75 million wallets. There are dozens of other wallets with private data. We have also already established that there are probably over 100 million Bitcoin owners. Nevertheless, there are many people who have already opened wallets but no longer have any bitcoins. Most people also have multiple wallets.

Since there are only ~ 64 million UTXOs, we know that many of Blockchain.com and Coinbase's wallets are empty.

We will not try to estimate the number of wallets. However, the data is clear:

  • Probably more than ~ 200 million, maybe even billions of wallets have been created in the years of Bitcoin's existence.
  • It can't possibly be more than ~ 64 million active Wallets as there are only ~ 64 million UTXOs.

That being said, a wallet can contain many UTXOs, so there are likely to be far fewer than ~ 64 million wallets in existence.

How many people know about Bitcoin?

About 90% of Americans have heard of Bitcoin.

88% of the Japanese and 93% of the British.

Another report puts the number of Europeans at 66% who have heard of Bitcoin, 78% in Poland and 79% in Austria.

In China, around 40% are interested in investing in Bitcoin.

It is very clear that the population of the industrialized countries is at least informed about Bitcoin.

Based on the above numbers, there appear to be at least 2 billion people who have heard of Bitcoin.

How many users does Coinbase have?

Coinbase's website claims that it has served more than 30 million users.

This means that Coinbase now has more users than Charles Schwab.

How many bitcoin traders are there?

A report by CH & Co estimates that there are between 51.2 and 52.4 million cryptocurrency traders worldwide.

Here's the breakdown by country:

  • North America: 15.3 million
  • Latin America: 1.05 million
  • Africa: 1.6 million
  • Europe: 10 million
  • Japan: 6.75 million
  • South Korea: 5 million
  • Rest of Asia (except Korea and Japan): 15.3 million
  • Australia and New Zealand: 400.000

How high is the user growth of Bitcoin?

This is a difficult question to answer. Let's look at some data.

Blockchain.com reported 31,914,414 users on January 1, 2019 and approximately 45 million on January 1, 2020. This corresponds to an increase of 41% for this year.

Interestingly, the total number of UTXOs (unspent bitcoins) has increased from 49 million on January 1, 2019 to 65 million a year later. That's a 33% increase.

What are the bitcoins used for?

People use Bitcoin for a lot of different things. Some use it to save money while others use it to shop online. Another common use of Bitcoin is to send money abroad as the Bitcoin network works in every country.