Coinbase CEO: Can cryptocurrency users scale from 50 million to 5 billion?
secondary title
Crypto market adoption could increase by 9900%
Currently, around 50 million people around the world use cryptocurrencies in one way or another, according to Armstrong.
According to a chart released by Statista, as of the fourth quarter of 2019, there were nearly 45 million cryptocurrency wallet users, up from 32 million in the same period last year and more than double the number in the fourth quarter of 2017.
Meanwhile, BitInfoCharts' updated Bitcoin distribution chart shows that there are 21.5 million Bitcoin wallets holding at least $1 in Bitcoin.
While it's difficult to estimate how many cryptocurrency users there are, Armstrong's cryptocurrency dreams are not out of reach. But is it possible that the 50 million figure will turn into 5 billion at some point?
Brian Armstrong said it was possible, but he didn't say when it would happen.
Coinbase CEO compares the adoption of cryptocurrencies to the expansion of the internet.
However, it is unlikely that cryptocurrency users will reach 5 billion anytime soon, so Armstrong's comments are not accurate. In fact, there are not even more than 5 billion internet users, let alone cryptocurrency users, so far.
According to another Statista chart, as of January 2020, there were 4.5 billion internet users.
secondary title
How did the cryptocurrency market reach 1 billion users first?
So far, while 1 billion users is a more realistic goal, it's not going to be easy.
However, it appears that there are three situations that may lead to this result.
The first thing to consider is Facebook's Libra initiative. Facebook has nearly 2.5 billion monthly active users. If it manages to successfully launch Libra's stablecoin, the cryptocurrency space can easily reach the 1 billion user mark.
However, the project is facing strong opposition from regulators, and many important members like Calibra have announced their withdrawal one after another.
This is followed by changes in the Asian market. China and India together account for 35% of the world’s population. Regulators in both countries have not been too friendly to cryptocurrencies, but things are starting to change.
At the end of last year, China's top leaders affirmed the development and application of blockchain technology, while India recently finally approved the transaction of cryptocurrency.
There is also the evolution of CBDC, if central banks around the world start to endorse central bank digital currency (CBDC), they will bring about another transformation.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
