Cryptocurrency Statistics 2022: Investing In Crypto | Bankrate
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cryptocurrency market boom and bust: fast facts
- after the 2008 recession, an individual or group by the name of satoshi nakamoto created a white paper to address the central bank’s control of money and the control governments had over the money of the citizens.
- In 2009, bitcoin was created, launching the cryptocurrency from an academic concept to a real-world currency competitor.
- Bitcoin was intended to eliminate control, oversight and fees associated with cash transactions. the legitimacy provided by third-party institutions like banks was supposed to be replaced by online crypto networks.
- on January 1st. on january 3, 2009, the first blockchain was launched with the first “block” called the genesis block.
- the first real bitcoin transaction took place on may 22, 2010 when a man from florida negotiated to have two papa john’s. $25 worth of pizzas delivered in exchange for 10,000 bitcoins. this established the first real value of bitcoin, at 4 bitcoins per cent. Since then, fans have dubbed this day “Bitcoin Pizza Day.”
- In February 2011, the price of bitcoin crossed the $1 threshold. just 11 years later, bitcoin hit an all-time high of $68,789 in November 2021.
- since bitcoin’s inception, more than 19,000 different cryptocurrencies have been created.
- bitcoin is the most valuable coin in circulation, with ethereum and tether in second and third place.
- the value of all existing cryptocurrencies is around $919 billion, of which around $389 billion is bitcoin ( as of July 7, 2022), according to coinmarketcap.com.
- The global online payments market was $6.75 trillion in 2021, according to research and markets.
- a As of July 7, 2022, the size of the bitcoin blockchain is approximately 415 gigabytes, roughly double the size of just three years ago.
statistics and demographics of cryptocurrency users
- about 59.1 million Americans owned some form of cryptocurrency in 2021.
- vietnam is currently at the top of chainanalysis’s global crypto adoption index, followed by india and Pakistan, to complete the top. three.
- many big adopters are developing markets, such as ukraine, kenya and nigeria, according to chainanalysis.
- in the united states, people with high incomes are disproportionately represented, with those earning $100,000 or more per year, representing 25% of cryptocurrency owners, but only 15% of the general public.
- about 70% of cryptocurrency owners are also men, but they represent only 48% of the general population, according to a report by morning consultation. women make up 30% of cryptocurrency owners, but 52% of the general population.
- Hispanics are overrepresented among cryptocurrency owners. about 16 percent of the us the population identifies as Hispanic, but 24 percent of crypto owners identify as Hispanic, the morning query says.
- cryptocurrency users are also overwhelmingly millennial. the morning query reports that 57 percent of all cryptocurrency owners in the us. uu. they are millennials, despite representing 30% of the general population.
- generation z represents 13% of cryptocurrency owners, but 11% of the population, and generation x owns 20 % of cryptocurrencies while representing 27% of the population, says morning consultation.
impact of cryptocurrencies on the environment: the statistics
Although cryptocurrencies created a new alternative payment method and opened the doors to millions of people around the world, the production of cryptocurrencies has been shrouded in controversy due to the energy required to produce them.
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Bitcoin and other cryptocurrencies are “mined” on decentralized computer networks that act as one big ledger. this ledger tracks every cryptocurrency transaction, and computers throughout the network verify and process each transaction through a blockchain database.
Think of it like a long receipt that records every transaction in a cryptocurrency. As transactions are processed and verified, new bitcoins are created or mined. mining is the process of adding another entry to the receipt or another block to the chain.
This process requires sophisticated, high-powered computers and a lot of electricity. Citing the Cambridge Bitcoin Electricity Consumption Index, Columbia University says that Bitcoin alone used an estimated 150 terawatt-hours of electricity annually as of May 2022, more than Argentina, with 45 million people.
Bitcoin mining consumes so much electricity that it accounts for 0.40 percent of the world’s electricity consumption as of July 2022, according to the Cambridge Index. Bitcoin mining alone is estimated to create between 22 and 22.9 million metric tons of carbon dioxide emissions per year, comparable to those created by Sri Lanka, according to Economic Times.
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if bitcoin were a country, it would be among the top 30 energy users worldwide, according to digiconomist.
The carbon footprint of one bitcoin transaction is equivalent to more than 975,000 visa transactions, according to digiconomist.
Bitcoin emissions alone could raise the average global temperature above 2°C, according to research published in the journal nature climate change.
It is even estimated that bitcoin mining consumes the same amount of electricity as all the data centers in the world, according to research by joule magazine.
crypto taxes and economic statistics
When cryptocurrencies were first created, they were nearly impossible for government tax agencies to trace. the hallmark of blockchain transactions is anonymity, which means that the identity of the buyer or seller cannot be proven.
However, since 2014, the IRS has declared that cryptocurrencies are treated as property for federal income tax purposes. Although the agency itself has yet to release official estimates, a new analysis from Barclays calculates that the IRS loses an estimated $50 billion per year from taxes that would need to be paid on cryptocurrency assets.
Buying and holding cryptocurrencies is not considered a taxable event. you can buy and hold the crypto for as long as you like (although you must disclose this on your tax return), but once you decide to sell (or realize the gain or loss), you’ll need to report the amount of gain or loss from the sale .
the future of cryptocurrencies
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The popularity of cryptocurrencies has grown in recent years as access to them has become easier. the asset remains incredibly volatile, and in 2022, rising interest rates triggered bitcoin selloffs as skittish investors dumped what is still considered a risky investment.
Governments around the world, including the United States, have also begun looking at how to regulate cryptocurrencies. on March 9, 2022, USA uu. President Joe Biden signed an executive order calling for a broad review of digital assets, including cryptocurrencies). Federal agencies are currently reviewing digital currencies and assessing the risk they pose to overall financial stability, among other considerations.
The difficulties of tax reporting and the controversy surrounding cryptocurrencies have resulted in the total banning of the digital asset in nine countries: Algeria, Bolivia, Bangladesh, the Dominican Republic, Ghana, Nepal, North Macedonia, Qatar and Vanuatu. China, which used to account for most of the world’s bitcoin mining, has now also banned cryptocurrencies altogether.
Cryptocurrency, although available as a payment method for some companies spread around the world, has not made the official leap as a widely available currency. Several major companies already accept cryptocurrencies as a form of currency or payment, but the list is relatively limited:
- at&t offers customers a payment option through bitpay.
- microsoft allows bitcoin to pay for xbox store credits.
- overstock.com allows payment on their website with bitcoin and other cryptocurrencies.
- game streaming platform twitch accepts bitcoin and bitcoin cash as payment.
- amc theaters allow viewers to purchase tickets with bitcoin and other cryptocurrencies.
- the dallas mavericks allow the use of bitcoin to purchase game tickets and merchandise through the team website.
So far, El Salvador and the Central African Republic accept cryptocurrencies as legal tender, although both countries have had significant problems with their implementation.
The volatile nature of cryptocurrency and the controversy surrounding climate impact make it a speculative investment. even a more established currency like bitcoin is risky. All cryptocurrencies are fairly new and it’s hard to compare asset-backed investments like stocks with digital currencies that are backed solely by investor sentiment.
Cryptocurrencies have become popular in recent years, but still face a number of challenges. Increased regulatory oversight by governments around the world, extremely volatile price swings, and fickle investor sentiment will continue to put pressure on the future of digital currencies.
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