Is the Number of Active Blockchain Wallets a Leading Indicator?

A predictive indicator of how blockchain and cryptocurrencies are progressing in disrupting the world of the conventional finance industry is the number of active cryptocurrency wallets.

What are Crypto Wallets? 

According to Wikipedia, a cryptocurrency wallet is “A cryptocurrency wallet is a device, physical medium, program or service which stores the public and/or private keys and can be used to track ownership, receive or spend cryptocurrencies. The cryptocurrency itself is not in the wallet.

Today, anyone who is interested in downloading a cryptocurrency wallet to his or her mobile phone will find an exhaustive list of wallets that allow the user to send, receive and hold cryptocurrencies, such as Bitcoin, and Ethereum.

That crypto wallets have gotten so much attention from entrepreneuring blockchain ventures should come as no surprise. Owning the relationship with the wallet user will be immensely valuable for any provider of wallets that can attract users at scale. Hence, there is a race for domination.

How Many Crypto Wallets Are There? 

According to Statista.com, there are just under 35 million active cryptocurrency wallets in use in 2019. This number has grown 5-fold over the last 3 years.

Statistic: Number of Blockchain wallet users worldwide from 1st quarter 2016 to 1st quarter 2019 | Statista

As the user base grows, cryptocurrencies are reaching more mainstream users. At 35 million users, the user base is tiny. Especially if you take into consideration that about 67% of Americans own a credit card and that there are over 1.5 billion credit cards in circulation between Visa and MasterCard.

More Thoughts on Crypto

Want to collect interest on your crypto? Sign up for a BlockFi account with this link and receive a $10 bonus in Bitcoin when you fund your account.

Published by

Adam Smith

It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.

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