Global Crypto Ownership Surged 34% in 2023, Reaching 580 Million

Introduction

The global cryptocurrency market has experienced a significant surge in ownership, with the number of crypto owners increasing by 34% in 2023. This growth is attributed to the rising popularity of bitcoin and Ethereum, as well as key drivers such as the approval of spot bitcoin exchange-traded funds (ETFs) and the Bitcoin Ordinals protocol. In this article, we will explore the details of this report and the factors contributing to the rapid adoption of cryptocurrencies.

Key Findings of the Report

The annual Crypto Market Sizing Report published by Crypto.com reveals that the number of global crypto owners rose from 432 million in January to 580 million in December 2023. This represents a significant increase of 34% within a year.

The report highlights the growth in ownership of two major cryptocurrencies:

Bitcoin (BTC)

Bitcoin ownership experienced a 33% surge, with the number of BTC owners rising from 222 million in January to 296 million in December. This accounts for 51% of the total global crypto owners.

Ethereum (ETH)

Ethereum ownership saw an even steeper rise of 39%, with the number of ETH owners increasing from 89 million in January to 124 million in December. Ethereum owners now make up 21% of the global crypto ownership.

Factors Driving Bitcoin Adoption Growth

The report attributes the significant adoption growth of bitcoin to two key factors:

Bitcoin Exchange-Traded Funds (ETFs)

The approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) played a crucial role in driving the adoption of bitcoin. These ETFs provided investors with easier access to bitcoin, attracting more individuals to invest in the cryptocurrency.

Bitcoin Ordinals Protocol

The introduction of the Bitcoin Ordinals protocol has been instrumental in expanding the use cases of bitcoin. This protocol allows for the creation of both non-fungible tokens (NFTs) and fungible tokens on the Bitcoin network. This development has further increased the appeal of bitcoin and attracted more users to the cryptocurrency.

Institutional Interest in Bitcoin

Aside from the aforementioned factors, strong interest from institutional investors has also contributed to the growth of bitcoin adoption. Institutional investors, recognizing the potential of bitcoin as a store of value and a hedge against inflation, have been actively investing in the cryptocurrency. This institutional interest has further boosted the popularity and adoption of bitcoin.

Ethereum's Adoption Growth

Ethereum's adoption growth is mainly attributed to the introduction of liquid staking after the Ethereum Shanghai Upgrade. This upgrade allowed for the withdrawals of staked ETH after the transition to the Proof of Stake (PoS) blockchain. The ability to stake and withdraw ETH has attracted more users to Ethereum, leading to a 39% increase in ownership of the cryptocurrency.

Conclusion

The significant surge in global crypto ownership in 2023 highlights the growing popularity and adoption of cryptocurrencies, particularly bitcoin and Ethereum. Factors such as the approval of bitcoin ETFs, the introduction of the Bitcoin Ordinals protocol, and strong institutional interest have all contributed to this rapid growth. As cryptocurrencies continue to gain mainstream acceptance, it is crucial for individuals and institutions alike to stay informed and take advantage of the opportunities presented by this digital asset class.

What are your thoughts on the increasing number of crypto owners globally? Share your opinions in the comments section below.

Frequently Asked Questions

Should You Buy Gold?

In the past, gold was considered a haven for investors during economic turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.

While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.

This could be changing, according to some experts. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.

They also noted that gold is growing in popularity because of its perceived value as well as potential return.

Consider these things if you are thinking of investing in gold.

Consider first whether you will need the money to save for retirement. It is possible to save enough money to retire without investing in gold. The added protection that gold provides when you retire is a good option.
Second, ensure you fully understand the risks involved in buying gold. Each one offers different levels security and flexibility.
Finally, remember that gold doesn't offer the same level of safety as a bank account. Your gold coins may be lost and you might never get them back.

So, if you're thinking about buying gold, make sure you do your research first. Make sure to protect any gold you already own.

How much gold do you need in your portfolio?

The amount that you want to invest will dictate how much money it takes. You can start small by investing $5k-10k. You could then rent out desks and office space as your business grows. You don't need to worry about paying rent every month. You just pay per month.

It's also important to determine what type business you'll run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.

Freelance work is not likely to pay a monthly salary. The project pays freelancers. You may get paid just once every 6 months.

You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.

I recommend starting with $1k-$2k in gold and working my way up.

What precious metal is best for investing?

This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. If you are looking for quick profits, gold might not be the right investment. If you have time and patience, you should consider investing in silver instead.

If you don’t want to be rich fast, gold might be the right choice. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.

Can I purchase gold with my self directed IRA?

Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. You can also transfer funds from another retirement account if you already have one.

The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.

If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts can be described as financial instruments that are determined by the gold price. They allow you to speculate on future prices without owning the metal itself. You can only hold physical bullion, which is real silver and gold bars.

What are the advantages of a IRA with a gold component?

There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You decide how much money is put in each account and when it is withdrawn.

You have the option of rolling over funds from other retirement account into a gold IRA. This allows you to easily transition if your retirement is early.

The best part is that you don't need special skills to invest in gold IRAs. These IRAs are available at all banks and brokerage houses. Withdrawals are made automatically without having to worry about fees or penalties.

There are, however, some drawbacks. Gold has historically been volatile. Understanding why you want to invest in gold is essential. Do you want safety or growth? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.

If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. One ounce won't be enough to meet all your needs. You could need several ounces depending on what you plan to do with your gold.

You don’t necessarily need a lot if you’re looking to sell your gold. You can even live with just one ounce. These funds won't allow you to purchase anything else.

What are the fees for an IRA that holds gold?

$6 per month is the Individual Retirement Account Fee (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.

If you want to diversify, you may be required to pay extra fees. These fees vary depending on what type of IRA you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.

A majority of providers also charge annual administration fees. These fees can range from 0% up to 1%. The average rate is.25% per year. These rates are usually waived if you use a broker such as TD Ameritrade.

Is it a good idea to open a Precious Metal IRA

Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. You cannot recover any money you have invested. This includes any loss of investments from theft, fire, flood or other circumstances.

This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. They are likely to fetch more today than the price you paid for them in their original form.

If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.

You won't get any returns until you retire if you open an account. Do not forget about the future!

Statistics

Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)

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