How Many People Own and Use Bitcoin in 2024?

So, how many people own Bitcoin in 2024? To answer that question, we need to look at blockchain data to determine the total number of Bitcoin holders, the history of BTC, lost Bitcoin, and how many people use Bitcoin in 2024.

This article will analyze the number of people using Bitcoin in 2024, exploring various methods to estimate ownership and daily usage rates. From examining wallet activity to tracking transaction volumes, we’ll delve into the trends and demographics that define Bitcoin’s user base. Additionally, you’ll see the role of institutional interest, regulation, and economic conditions in shaping Price Trading volume in 24h Last 7d price movement Buy Now! adoption rates.

How Many People Own Bitcoin in 2024: Summary

Estimates suggest millions of people globally own Bitcoin, with the numbers varying based on research methods and data sources. Understanding these ownership patterns is key to assessing Bitcoin’s growing role in the financial world.

The State of Bitcoin Ownership in 2024

This section will explore various facets of Bitcoin ownership, including who owns Bitcoin, how it is used, and the trends shaping its adoption.

Estimating the Number of Bitcoin Users in the World

Estimating the number of Bitcoin users is challenging. We can look at the number of active addresses, but this doesn’t give us the full picture. One person or entity, such as a company, can conceivably own hundreds or thousands of wallets, and some people keep their Bitcoin in an exchange’s hot wallet with commingled funds.

However, data revealing the spread of Bitcoin worldwide can give us a picture of how dispersed Satoshi Nakamoto’s cryptocurrency is globally. According to indexed global Bitcoin data from Chainalysis, the number of active Bitcoin users fell in 2023 from the highs seen in 2021.

In addition, an estimate by Coinshares, made by correlating the limited research on the topic together, put the number of active Bitcoin users in 2022 at around 260 million people.

How “ownership” is defined is another stumbling block in determining a true number. If owning Bitcoin means having a personal wallet with any amount of Bitcoin, there may be around 30 million owners. But when considering people who store Bitcoin on exchanges, the figure could exceed 100 million, representing around 1.3% of the global population.

The Bitcoin network processes between 270,000–1 million transactions daily, though many of these involve multiple recipients. People often hold their Bitcoin as long-term savings, contributing to fewer active transactions despite price increases.

Trends in Bitcoin Adoption Rates

In 2024, Bitcoin remains the most popular and highest-valued cryptocurrency, with around 76% of all crypto holders owning it. It maintains its dominant position primarily due to its first-mover advantage and the deflationary rate of new Bitcoin entering the market thanks to its supply halvings. The 2020 and 2021 Bitcoin boom, triggered by its third halving and global inflation, led to significant adoption, but fewer new users joined after 2022’s poor market performance.

While Bitcoin ownership remains strong, Ethereum (ETH) ownership has declined from 65% in 2021 to 54% in 2023, impacted by competition from smart contract platforms like Solana (SOL) and Binance Coin (BNB). Ripple (XRP) ownership rose after a legal victory against the SEC in 2023.

In 2024, Bitcoin’s supply will halve again, from 6.25 BTC per block to 3.125 BTC, likely driving further interest, especially as an expected Bitcoin ETF attracts institutional investors. The top reasons for owning cryptocurrency are to diversify portfolios, interest in the technology, and a belief in crypto’s future. Bitcoin is also seen as a strong portfolio diversifier, with many owners seeing returns despite the market’s volatility.

Understanding Who Owns Bitcoin

This section provides insights into who owns Bitcoin by examining age, gender, and income distributions among Bitcoin holders. By analyzing current data and trends, we can better understand the profile of Bitcoin owners and how these demographics influence the cryptocurrency’s adoption and use. As can be seen in the graphic below by Chainalysis, we can see a rough estimate of how wallet ownership is distributed, with 460 million total Bitcoin addresses made up of active wallets, wallets operated by entities such as exchanges, merchants, gambling platforms, and on darknet markets. Only 25 million are verified as being private wallets holding Bitcoin, showing how complex determining true ownership figures is.

Demographics of Bitcoin Owners: Age, Gender, and Income

While there’s no specific source that provides these metrics, we can arrive at a satisfactory conclusion by examining cryptocurrency trends. According to data from a recent report by Security.org, the gender and age demographics of cryptocurrency owners reveal:

• 61% of crypto owners are male, and 39% are female. However, the gender gap is narrowest among younger users (ages 18-24), with only a 2% difference.
• The largest age demographic for crypto ownership is people aged 25-34, accounting for 34% of the market. The second-largest group is those aged 35-44, making up 31%.

Methods for Tracking Bitcoin Ownership

This section delves into the techniques and data sources that provide insights into Bitcoin’s user base, including wallet analysis, transaction tracking, and trading volume metrics. By exploring these methods, we can gain a clearer picture of Bitcoin’s reach and its role in the global financial landscape.

Analyzing Wallet Activity

BitInfoCharts reports that 67 million Bitcoin addresses hold at least $1, though some of these could be inactive, abandoned wallets. There are around 17.97 million dormant wallets, meaning they haven’t had any transactions in the past seven years. This leaves us with 49.03 million active Bitcoin wallets.

Bitcoin Transactions

We can assess Bitcoin usage by looking at the frequency of transactions on the network. However, this approach has downsides. Many Bitcoin investors are long-term holders, meaning they may not actively move Bitcoin but are still heavily involved in its ecosystem. Also, we can’t really determine the identities of individuals behind each wallet.

Bitcoin Trading Volume

Trading volume typically fluctuates throughout the week, with weekends typically seeing lower activity. Historically, Bitcoin’s highest daily trading volume occurred on January 5th, 2021, reaching $68.3 billion when Bitcoin soared to an all-time high of nearly $35,000. While these statistics may not give us an exact number of Bitcoin owners, they give us a view into the possibilities in the ecosystem.

Global Bitcoin Ownership

According to Triple-A’s recent 2024 report, the Bitcoin ownership section reveals significant variations across continents.

Daily Use of Bitcoin in 2024

Bitcoin is increasingly integrated into everyday financial activities, from purchasing goods and services to facilitating peer-to-peer transactions. How Bitcoin is being used today, and the various avenues through which people and businesses are incorporating it into their daily lives will give us a better understanding of daily BTC use.

Common Uses for Bitcoin

One of Bitcoin’s most popular uses is for online transactions, where individuals can pay for goods and services with the cryptocurrency. Beyond payments, Bitcoin is also used as a store of value, similar to gold, with some people investing in it as a hedge against inflation and economic instability.

Merchant Acceptance of Bitcoin

Around 36% of small to medium-sized businesses in the U.S. accept Bitcoin. Some major global companies that currently accept Bitcoin payments include Wikipedia, Microsoft, and AT&T. Additionally, platforms like Spendabit allow users to search for vendors by product to find businesses that accept Bitcoin. Notable companies such as Burger King in Venezuela, KFC Canada, Overstock, Subway, and Twitch have also embraced Bitcoin for transactions, with many of them using services like BitPay for processing payments. While some of these initiatives are temporary or regional, they highlight Bitcoin’s growing role in global commerce.

How Many People Use Bitcoin Every Day?

With over 19.4 million Bitcoins in circulation, lots of different types of transactions take place daily on the Bitcoin blockchain. These transactions include depositing or withdrawing funds from exchanges, trading Bitcoin for other assets, sending Bitcoin to others, or using it for payments.

However, it’s unclear how many of these transactions represent unique Bitcoin holders, as a large portion is likely tied to exchanges. For example, according to CoinGecko, Binance boasts of 53.9 million monthly visits, while Bybit has 27.5 million monthly visits and Coinbase has 34.6 million.

What Influences the Number of Bitcoin Users?

Various factors affect the number of Bitcoin users, ranging from market conditions to global economic events. Understanding these influences helps to provide insight into the overall growth and adoption of Bitcoin. Below, we’ll explore some of the key elements that shape the number of Bitcoin users, including broader market trends, economic conditions, and major economic events.

Broader Market Trends

Bitcoin’s price is primarily influenced by its supply and demand dynamics, media coverage, and regulatory changes. With only 21 million Bitcoins ever to be mined, the asset’s scarcity often drives up its value, particularly as demand surges. For instance, increased media attention, such as positive news or endorsements from influential figures, can attract more investors and users, thereby raising demand and price. Conversely, regulatory news or economic events can cause fluctuations, impacting investor sentiment and Bitcoin’s market value. Also, competition from other cryptocurrencies (like Ethereum) and technological advancements also play a role in shaping Bitcoin’s market presence and user base.

Economic Conditions

Global economic health affects Bitcoin as it experiences fluctuations in demand during periods of expansion and recession. In thriving economies, increased wealth can lead to higher investments in Bitcoin, while recessions generally lower demand for riskier assets. Investor behavior also shifts between risk-on and risk-off conditions, influencing Bitcoin’s appeal compared to traditional assets.

Bitcoin’s role as an inflation hedge becomes more prominent in countries with weak fiat currencies, driving up adoption where local currencies suffer from high inflation. Government regulations can either restrict or promote Bitcoin usage, affecting its accessibility and adoption. Moreover, Bitcoin mining operations depend on resources and infrastructure, with disruptions or resource scarcity impacting transaction fees and network security. As Bitcoin becomes more integrated into the global economy, its interactions with macroeconomic events will continue to evolve, shaping its desirability and usage.

Major Economic Events

Major economic shifts, such as interest rate hikes and financial crises, often lead to sharp price movements in Bitcoin due to its speculative nature and sensitivity to investor sentiment. For instance, regulatory developments, such as China’s 2021 mining ban or the anticipation of U.S. Bitcoin ETFs, have led to notable price fluctuations. Bitcoin’s market, driven largely by retail investors, is prone to high volatility compared to traditional assets like equities or gold.

Additionally, large holders or “whales” can cause substantial price swings with their transactions. Despite technological advancements like the Lightning Network, Bitcoin’s inherent volatility remains, driven by market dynamics and investor behavior. The evolving regulatory landscape and institutional involvement will continue to impact Bitcoin’s price stability and volatility.

Growth of Bitcoin Users in Financial Institutions

Bitcoin is increasingly being embraced by banks and investment firms, reflecting institutional acceptance of Bitcoin as an asset class. This growing acceptance is reshaping how financial institutions interact with Bitcoin, driving new opportunities for both the cryptocurrency and the financial sector.

Banks and Bitcoin: A Changing Relationship

The cryptocurrency sector is driving a significant transformation within the banking industry, blending decentralized innovations with traditional financial systems. As banks increasingly adopt cryptocurrencies and blockchain technology, they are beginning to modernize their operations and introduce new services.

Despite this growing integration, the sector faces notable challenges, including regulatory uncertainties, security risks, and issues related to consumer protection. While adoption is still in its early stages and more prevalent in developed markets, emerging trends such as Central Bank Digital Currencies (CBDCs) and decentralized finance (DeFi) are poised to shape the future of banking, potentially lowering costs, enhancing transparency, and broadening financial inclusion.

As banks navigate these changes, they are also exploring innovative business models and partnerships with fintech firms. Case studies from institutions like Goldman Sachs, BBVA, and UBS illustrate the practical steps banks are taking to incorporate crypto into their services. The ongoing development of blockchain technology and the rise of CBDCs suggest a future where digital assets become more integrated into banking operations. The banking sector is expected to continue evolving, leveraging these advancements to improve efficiency, reduce costs, and create new opportunities for financial services and inclusion.

Investment Firms Offering Bitcoin

Investment firms are also playing a crucial role in the growth of Bitcoin adoption within the financial sector. Their involvement is marked by several key developments:

1. Bitcoin Investment Products: Investment firms have introduced various Bitcoin investment products, including exchange-traded funds (ETFs) and trusts. These products provide investors with a regulated and accessible way to gain exposure to Bitcoin without directly purchasing and holding the cryptocurrency.
2. Institutional-Grade Solutions: Many investment firms are offering institutional-grade solutions for Bitcoin investment, such as secure custody services and trading platforms. These solutions address the specific needs of institutional investors, including security, compliance, and liquidity.
3. Market Integration: By integrating Bitcoin into their investment portfolios, firms are broadening their offerings to include digital assets. This integration reflects a recognition of Bitcoin’s potential as a store of value and a hedge against economic uncertainties.
4. Advisory and Research: Investment firms are also providing advisory services and research on Bitcoin and other cryptocurrencies. This support helps clients understand the risks and opportunities associated with digital assets, facilitating informed investment decisions.

The Future of Bitcoin Use

This section explores the potential paths Bitcoin might take, driven by evolving user adoption patterns and technological advancements. Understanding these dynamics is crucial for anticipating how Bitcoin could shape financial systems, investment strategies, and everyday transactions.

Predictions on Bitcoin User Growth

There are various expert predictions for Bitcoin user growth. Factors driving this growth include increasing institutional investment, broader acceptance of Bitcoin as a legitimate asset class, and growing consumer awareness. Predictions suggest that as Bitcoin becomes more integrated into traditional financial systems and offers more practical applications, such as payments and hedging against inflation, its user base will expand further.

However, the general crypto outlook is promising. According to Statista, the global cryptocurrency market is projected to generate revenue of approximately $56.7 billion in 2024. However, this growth is anticipated to face a decline, with a compound annual growth rate (CAGR) of -20.01% expected between 2024 and 2025, resulting in a revenue forecast of $45.3 billion by 2025. The average revenue per user in the cryptocurrency market is estimated to be $66.1 in 2024.

Globally, the U.S. is expected to lead with the highest revenue, reaching $9,788.0 million in 2024. The number of cryptocurrency users worldwide is projected to reach 861.00 million by 2025. The user penetration rate is anticipated to be 11.05% in 2024, slightly decreasing to 11.02% by 2025. Despite ongoing regulatory challenges, the U.S. remains at the forefront of cryptocurrency innovation and adoption, driven by major financial institutions and tech companies.

Emerging Technologies and Their Impact on Bitcoin

Innovations such as improvements in blockchain scalability, advancements in security protocols, and greater integrations with Bitcoin, DeFi, and smart contracts could significantly impact its utility and adoption. These technologies may enhance Bitcoin’s transaction efficiency, security, and functionality, making it more appealing to a wider audience and facilitating its use in various sectors beyond finance.

Challenges and Barriers to Bitcoin Adoption

This section delves into the primary obstacles facing Bitcoin, focusing on regulatory hurdles and the persistent misconceptions that hinder its acceptance and growth.

Regulatory Challenges Facing Bitcoin

Bitcoin’s path to broader acceptance is filled with regulatory problems that vary across different jurisdictions. Governments and regulatory bodies around the world are still grappling with how to address the unique characteristics of Bitcoin and other cryptocurrencies.

Key issues include:

• Lack of Standardization: There is no unified global regulatory framework for Bitcoin, leading to a patchwork of regulations that can create confusion and inconsistency.
• Legal Uncertainty: The evolving nature of cryptocurrency laws means that businesses and individuals face uncertainty regarding compliance, which can deter investment and innovation.
• Taxation Issues: Different countries have different approaches to taxing Bitcoin transactions, which can complicate financial planning and reporting for users and businesses.
• AML and KYC Requirements: Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations pose challenges for Bitcoin exchanges and service providers, who must implement robust measures to prevent illicit activities while maintaining user privacy.

Overcoming Misconceptions About Bitcoin

Bitcoin is often misunderstood, and these misconceptions can hinder its widespread adoption. Addressing and clarifying these misunderstandings is essential for fostering a more accurate and positive perception of Bitcoin. Common misconceptions include:

• Volatility Concerns: Many perceive Bitcoin as too volatile to be a reliable store of value or medium of exchange. While it is true that Bitcoin has experienced significant price fluctuations, its long-term trend has shown growth and increasing acceptance.
• Security Risks: Some people associate Bitcoin with high-security risks due to its decentralized nature and the prevalence of cyberattacks on exchanges. However, advancements in security measures and best practices are continuously improving the safety of Bitcoin transactions and storage.
• Illegal Activity: Bitcoin is sometimes associated with illegal activities due to its use on the dark web. However, the majority of Bitcoin transactions are for legitimate purposes, and its transparency can actually enhance regulatory oversight.
• Complexity and Usability: The technical aspects of Bitcoin and blockchain technology can be daunting for newcomers. Simplifying the user experience and providing better educational resources can help make Bitcoin more accessible to a broader audience.Best

The Influence of Celebrities and Public Figures on Bitcoin Ownership

This section looks into the involvement of various celebrities in the Bitcoin space. By exploring how figures like Elon Musk, Mike Tyson, and Maisie Williams have engaged with Bitcoin, we gain insight into how celebrity influence can impact market perceptions, investment strategies, and the broader crypto ecosystem.

High-Profile Bitcoin Endorsements

The love of Bitcoin and cryptocurrency extends far beyond tech enthusiasts and financial experts. Celebrities, known for their trendsetting and often unconventional choices, have increasingly engaged with the crypto space, influencing public perception and market trends in significant ways. High-profile endorsements from figures like Elon Musk, Mike Tyson, and Maisie Williams have not only spotlighted Bitcoin but also highlighted various dimensions of the cryptocurrency’s appeal and potential.

Elon Musk, CEO of Tesla and SpaceX, has been a particularly influential figure in the crypto world. His high-profile endorsement of Bitcoin and Dogecoin, including Tesla’s $1.5 billion Bitcoin purchase in early 2021, helped drive the cryptocurrency to new heights. Although Tesla later halted Bitcoin payments due to environmental concerns, Musk’s tweets and public statements continue to impact crypto markets significantly.

Similarly, Mike Tyson’s early adoption of Bitcoin and his sponsorship of a Bitcoin wallet in 2016 underscored the opportunities available in the emerging crypto market. Other celebrities like Maisie Williams and Lindsay Lohan have also engaged with Bitcoin in various ways, from public polls and investment decisions to exploring NFTs, showcasing the diverse ways in which Bitcoin can intersect with mainstream culture and technology.

The Effect of Celebrity Criticism on Bitcoin Perception

While high-profile endorsements can propel Bitcoin into the limelight, celebrity criticism can similarly shape public perception and market dynamics. The influence of prominent figures expressing skepticism or criticism towards Bitcoin can have a profound impact on its acceptance and valuation.

Celebrities like Kevin O’Leary, who initially dismissed Bitcoin as “garbage” but later adjusted his stance to allocate a portion of his portfolio to the cryptocurrency, exemplify how shifting opinions can reflect broader market sentiments. This transformation highlights the role that regulatory clarity and evolving legal frameworks play in shaping investor confidence. Additionally, other notable figures, such as Logic and Bill Gates, have made headlines with their critical views on Bitcoin, contributing to a mixed public perception. Their critiques often revolve around concerns about volatility, security risks, and environmental impact, which can sway public opinion and influence market behavior. Overall, the interplay between celebrity endorsements and criticisms underscores the complex relationship between public figures and the evolving landscape of cryptocurrency.

Where Can You Buy Bitcoin?

Here’s a guide to the most common ways you can acquire Bitcoin:

Cryptocurrency Exchanges

Cryptocurrency exchanges are the most popular platforms for buying Bitcoin. They offer a straightforward process where you can exchange traditional currencies (like USD, EUR, or NGN) for Bitcoin. Some of the leading exchanges include:

• Margex
• MEXC
• OKX
• Exodus

Pro Tip: Learn more about exchanges for buying Bitcoin in our Best Bitcoin Exchanges guide.

Bitcoin ATMs

Bitcoin ATMs offer a convenient way to purchase Bitcoin using cash or debit/credit cards. These machines allow you to buy Bitcoin and receive it directly in your digital wallet. You can find Bitcoin ATMs in various locations, including major cities and retail locations.

Brokerage Services

Brokerage services simplify the process of buying Bitcoin by acting as intermediaries between buyers and the cryptocurrency market. They often provide additional services like educational resources and customer support.

Wallets and Financial Apps

Some digital wallets and financial apps offer integrated cryptocurrency purchasing features. These platforms are convenient for managing your Bitcoin holdings alongside other financial assets.

Conclusion

Bitcoin ownership numbers are difficult to pin down to an approximate figure. Despite challenges in accurately estimating ownership due to factors like wallet multiplicity and exchange-held assets, the general consensus points to a significant and growing user base.

The patterns of Bitcoin usage—spanning from daily transactions and trading to long-term holding—highlight its versatility and enduring appeal. This is further underscored by its continued dominance in the cryptocurrency market, outpacing other digital assets in both ownership and daily activity. Institutional interest, regulatory developments, and economic conditions play pivotal roles in shaping these trends, influencing both adoption rates and market behavior.

Understanding who owns Bitcoin and how it is used provides valuable insights into its impact on the financial ecosystem. From individual investors to institutional players, Bitcoin’s integration into daily financial activities and its increasing acceptance by major businesses mark a substantial shift toward mainstream adoption. As Bitcoin continues to evolve, keeping abreast of these trends will be crucial for navigating the opportunities and challenges it presents in the ever-changing world of digital finance.

See also:

How Many Bitcoins Are There & How Many Are Left?

FAQs

How Many People Own 1 Bitcoin?

As of now, only a small percentage of Bitcoin holders own a full Bitcoin. Based on blockchain data, approximately 1 million wallet addresses hold at least 1 BTC. However, it’s essential to note that many individuals might control multiple wallets, and some wallets could belong to organizations rather than individuals.

What is the most secure way to store Bitcoin?

The most secure method for storing Bitcoin is through cold storage, which involves keeping your private keys offline and away from potential cyber threats. Hardware wallets are the top choice for those who want maximum security, offering offline storage with advanced encryption. Example are Ellipal, Ledger, and Trezor.

Can you use Bitcoin for everyday purchases?

Yes, Bitcoin can be used for everyday purchases, though its adoption varies by region. Many online merchants, including major companies like Microsoft, Overstock, and others, accept Bitcoin as payment.

How Many Bitcoin Wallets Exist?

As of recent estimates, over 460 million Bitcoin wallet addresses have been created. However, only about 37% of these are considered “economically relevant,” meaning they hold significant balances or are actively used for transactions.

What are the Best Ways to Buy Bitcoin?

The easiest and most popular way to buy Bitcoin is through cryptocurrency exchanges. These platforms provide access to BTC using fiat currencies and other cryptocurrencies. Our recommended exchanges are secure and user-friendly: Margex, MEXC, OKX, Exodus.

References

Buy Bitcoin Worldwide. “Crypto Adoption Index Statistics.” Buy Bitcoin Worldwide, 2024, https://buybitcoinworldwide.com/crypto-adoption-index-statistics/

Security.org. “Cryptocurrency Annual Consumer Report.” Security.org, 2024, https://www.security.org/digital-security/cryptocurrency-annual-consumer-report/

Triple-A. “Cryptocurrency Ownership Data.” Triple-A, 2024, https://www.triple-a.io/cryptocurrency-ownership-data

Bitinfocharts. “Top 100 Dormant 5Y Bitcoin Addresses.” Bitinfocharts, 2024, https://bitinfocharts.com/top-100-dormant_5y-bitcoin-addresses.html

River. “How Do Macro Events Affect Bitcoin?” River, 2024, https://river.com/learn/how-do-macro-events-affect-bitcoin/

B2BinPay. “What Is the Future of Crypto in the Banking Sector?” B2BinPay, 2024, https://b2binpay.com/en/what-is-the-future-of-crypto-in-the-banking-sector/

Statista. “Cryptocurrencies Worldwide.” Statista, 2024, https://www.statista.com/outlook/fmo/digital-assets/cryptocurrencies/worldwide