Global Crypto Investment: Who's Betting Big On Digital Currency?

Cryptocurrency has become increasingly popular in recent years, with an estimated 300 million people worldwide owning some form of cryptocurrency as of the end of 2021. The total market capitalization of all cryptocurrencies was estimated to be around $2.41 trillion as of March 2024, with Bitcoin contributing about $1.32 trillion (around 55%) of that value. While the number of people investing in cryptocurrency continues to grow, it is still largely concentrated among Gen Z and millennial men.

Crypto ownership by country

Crypto ownership varies across the world, with consumers from countries in Africa, Asia, and South America being the most likely to own cryptocurrencies. As of 2024, it is estimated that there are over 560 million crypto owners worldwide, with an average ownership rate of 6.8%. Here is a closer look at crypto ownership in different countries:

United Arab Emirates (UAE)

The UAE has the highest rate of crypto ownership globally. The country's government is considered very crypto-friendly, with the Financial Services Regulatory Authority (FSRA-ADGM) being the first to provide rules and regulations for cryptocurrency purchasing and selling. The Emirates are generally open to new technologies and have proposed zero taxes for crypto owners and businesses.

Vietnam

Vietnam leads Southeast Asia in crypto ownership. Cryptocurrency holdings in the country are untaxed, making them an attractive asset. Additionally, Vietnam has a large unbanked population, and cryptocurrencies provide an alternative means of accessing financial services without relying on traditional banks. Vietnam is also home to the company Sky Mavis, which is behind the popular NFT-based game "Axie Infinity," which has further fueled interest in crypto and NFTs in the country.

Philippines

The Philippines has seen a surge in crypto demand, largely due to Play-to-Earn (P2E) games and NFTs. It is estimated that 35-40% of the traffic on Axie Infinity comes from the Philippines, and the game is so widespread that the government introduced new crypto tax laws for players in 2021.

United States

The US has the most crypto owners in terms of absolute numbers, with roughly 46 million owners or about 13% of the population. However, when adjusted for population, it falls behind other countries. The US is also one of the top countries in terms of Bitcoin (BTC) trading volume, along with Russia.

India

India has a high number of crypto owners, with about 93 million people owning crypto. However, there is still uncertainty surrounding the laws and regulations regarding crypto in the country.

Thailand

Thailand has the highest number of crypto holders per capita, with a reported 20% of residents holding some form of crypto.

Nigeria

Nigeria has a high rate of crypto ownership, with 19.4% of the population owning crypto. It is also one of the countries with the highest Bitcoin trading volume.

Central & Southern Asia and Oceania (CSAO)

This region, including countries like Pakistan, Indonesia, and Nepal, dominates the top of the Chainalysis Global Crypto Adoption Index. These countries are leading the way in grassroots crypto adoption, with a significant number of average, everyday people embracing crypto.

Crypto's worldwide market capitalisation

As of September 2024, the global cryptocurrency market capitalisation is estimated to be around $2 trillion, with Bitcoin making up over half of the total value of the crypto market. The value of all existing cryptocurrencies is approximately $2.02 trillion, with around $1.14 trillion of that being attributed to Bitcoin, according to CoinMarketCap.com.

The market capitalisation of cryptocurrencies has seen significant fluctuations over time. In August 2023, the crypto market cap was estimated at $1.09 trillion. It increased in early 2023 after a downfall in November 2022 due to FTX but declined in the summer of 2023 due to international uncertainty over a potential recession.

Bitcoin's market cap constitutes a significant portion of the overall market capitalisation. As of February 2024, Bitcoin accounted for 48.6% of the total value of the crypto market. As of September 2024, Bitcoin's market cap is estimated to be around $1.25 trillion, representing a Bitcoin dominance of about 55%.

The total market capitalisation of all cryptocurrencies as of March 2024 was $2.41 trillion, with Bitcoin contributing $1.32 trillion (approximately 55%). Ethereum, the next closest crypto in terms of market cap, had a market cap of $425 million, with Bitcoin's market cap being more than three times larger.

The global cryptocurrency market cap today, including all 14,695 cryptocurrencies tracked across 1,197 exchanges, is $2.27 trillion, a 0.73% change in the last 24 hours and a 104.37% change from one year ago.

Bitcoin's percentage of all money

Bitcoin is the largest and most well-known cryptocurrency in the world. As of April 2024, the combined value of all bitcoins was over $1.39 trillion, with one bitcoin worth about $70,665. This constituted about 0.3% of the world's money and 7.6% of the world's gold supply.

Bitcoin's percentage of the total value of the crypto market has varied over time. As of February 2024, it made up 48.6% of the total value of the crypto market. In March 2024, Bitcoin contributed $1.32 trillion to the total market capitalization of all cryptocurrencies, which was $2.41 trillion at the time. This meant that Bitcoin accounted for approximately 55% of the total market cap of all cryptocurrencies.

Estimates of the number of people who own Bitcoin vary. While one source states that around 50 million people own Bitcoin, another source estimates that there were 106 million owners of Bitcoin in 2023. According to Pew Research, 16% of US adults had invested in, traded, or used cryptocurrency as of September 2021.

Crypto investors by age and gender

There is a notable gender gap in the world of cryptocurrency investing, with men investing at far higher rates than women. This gap is not limited to crypto, as men are also more likely to invest in stocks, ETFs, mutual funds, and real estate. However, the gap is notably wider for crypto than for other investments.

According to a 2021 CNBC and Acorn survey, 16% of men and 7% of women invest in cryptocurrencies. This gender disparity is not limited to the United States, as a 2022 survey found that men in the United States were nearly three times more likely to own crypto than women, and similar gaps were found in the other 25 countries surveyed. For example, in Vietnam, 56% of male respondents owned crypto compared to 44% of women.

Several factors have been identified as contributing to the lower rates of crypto investment among women. These include a lack of investment experience in traditional assets, a general lack of knowledge about cryptocurrencies and related concepts such as blockchain and transactions, and the fact that cryptocurrencies do not inspire a sense of security among women.

While crypto has a higher participation rate among younger adults than older adults, with 15% of 18-34-year-olds owning crypto compared to 11% of 35-64-year-olds and 4% of those 65 and older, the gender gap remains significant within these age groups.

Crypto's environmental impact

While it is difficult to calculate the exact amount of energy used for mining Bitcoin and other cryptocurrencies, estimates suggest that the process uses as much energy as small countries. The energy consumption of the Bitcoin network, for example, is comparable to that of New Zealand, and other estimates place it at around 151 terawatt-hours (TWh) of electricity annually, exceeding the energy consumption of Ukraine.

The energy-intensive process of mining Bitcoin and other proof-of-work cryptocurrencies involves solving computational puzzles to verify transactions, which are then added to the blockchain. This process is carried out by high-powered and sophisticated computers, which require a lot of electricity to run. The energy efficiency of mining equipment has been increasing, but electricity usage continues to rise due to the increasing popularity of cryptocurrency.

The environmental impact of cryptocurrency mining is significant, with global mining for the largest cryptocurrencies estimated to create between 110 and 170 million metric tons of carbon dioxide emissions per year, according to a White House report. This is further exacerbated by the fact that three countries heavily dependent on fossil fuels—the US, China, and Kazakhstan—are responsible for around 71% of the world's Bitcoin mining.

The carbon footprint of a single Ethereum transaction as of December 2021 was 102.38 kilograms of CO2, which is equivalent to the carbon footprint of 226,910 VISA transactions or 17,063 hours of watching YouTube. The electrical energy footprint of a single Ethereum transaction is about the same as the power used by an average US household in 8.09 days.

The issue of energy usage in cryptocurrency mining is further compounded by the fact that only about a fifth of the electricity used in the world's data centers comes from renewable sources. As a result, the rapid growth of crypto-assets could potentially hinder broader efforts to achieve US climate commitments to reach net-zero carbon pollution.

However, it is important to note that not all cryptocurrencies use a system that depends on large amounts of energy to run. Ethereum, Solana, and many others use a system that requires very little energy and has a minimal environmental impact. Additionally, there are alternative validation methods being developed, such as proof of history, proof of elapsed time, proof of burn, and proof of capacity.

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