Report: Verified Cryptocurrency Users Increased Twofold in 2018

Report: Verified Cryptocurrency Users Increased Twofold in 2018

A new research report from the Cambridge Centre for Alternative Finance (CCAF) suggests the number of verified cryptocurrency users increased more than twofold in 2018. Notably, any recent growth that has come arrived as the cryptoeconomy’s market capitalization sustained significant drawdowns throughout the year.

Also see: IBM, Indian Telecom Regulator to Roll Out Blockchain Registries in 2019

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I.D. In, Anonymity Out: More Verified Cryptocurrency Users, More Certainty

U.K.-based academic research institute CCAF, which is dedicated to studying alternative financial enterprises, has published its second annual report on cryptocurrencies this week.

The report, dubbed the “Global Cryptoasset Benchmarking Study,” argued the number of I.D.-verified users doubled globally in the first three quarters of 2018. Such users grew from 18 million to 35 million in number, according to CCAF.

In that same span, the survey concluded there were over 139 million user accounts open collectively across active cryptocurrency exchange service providers. Statistically speaking, one in four of those 139 million accounts were verified as of 2018.

Users are ditching anonymity to trade in cryptocurrencies.

However, CCAF’s researchers also made the point that, per some patchwork data, only 38 percent of those collective accounts appeared active during the last year and that individuals still seemingly make up for the majority of cryptocurrencies’ user bases — not business enterprises.

The large potential rise in verified users indicates the increasing implementation of Know Your Customer (KYC) and Anti-Money Laundering (AML) systems in the cryptoverse. Interestingly, more than half of the analyzed “cryptoasset-only” service providers carried out KYC/AML checks. 

Some in the space will surely see the survey findings as offering a glimmer of hope for crypto enthusiasts, even as the world’s biggest cryptocurrency bitcoin has dropped by more than 80 percent from its last peak in recent months.

Cryptoverse on the Mainstream Track Perchance

Additionally, the CCAF findings suggested the cryptoeconomy seemed to be coupled with the traditional international financial system more than ever before.

“The cryptoasset ecosystem is becoming more connected to traditional finance due to the emergence and growth of gateways bridging both systems, as well as growing regulatory clarity,” the report said.

“The relatively small size of the industry in the global financial market poses no systemic risk at this time.”

Energy consumption has long been regarded as a drawback of the crypto industry, but the CCAF survey also interestingly highlighted that a notable number of mining facilities have shifted toward renewable energy.

Moreover, the researchers also found that crypto mining has become less concentrated geographically as mining facilities have continued to pop up globally.

While China still leads in overall hash power, the United States and Canada saw an increase in the number of domestic mining facilities on the year. 

Will the crypto market rebound with a constant increase in the number of cryptocurrency users? Is that a pipe dream for now? Share your views in the comments section below. 

Images via Pixabay

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