Cambridge University in the UK releases the world's first cryptocurrency research report (download report)

Rage Review : The world's first digital currency benchmark research project of the Cambridge University Center for Alternative Finance has come to an end, and recently released a complete research report "Global Cryptocurrency Benchmark Research". The research has four core areas, namely exchanges, wallets, mining and payments, and introduces the scale and geographical distribution of participants in each field. It is particularly mentioned that the market share of Bitcoin, which currently has the largest market value and appeared the earliest, has been diluted by other new cryptocurrencies.

Translation: Annie_Xu

The Cambridge Centre for Alternative Finance (CCAF) has released its first research report on digital currencies, including their use and the emerging ecosystem that supports them. The report explains that “the world of money and finance is changing before our eyes.”

Follow the WeChat public account “区块链笔Blockchain” and reply with the keyword “Cambridge” to view and download the full text of this report.

The Global Cryptocurrency Benchmarking Study is CCAF's first study on alternative payment systems and digital assets. The Garrick Hileman-led study aims to take a "holistic" look at the global cryptocurrency market; CCAF says it is the first study of its kind. CCAF Research Assistant Michel Rauchs co-signed the report.

Garrick Hileman

Hileman said:

“The data we collected suggests that there are many more active cryptocurrency users than people had previously thought. Many observers believe the number of active users is less than one million, but our data suggests that the group is likely well over a million.”

The report collected data from more than 100 cryptocurrency companies in 38 countries around the world through a secure web questionnaire. CCAF said the survey covered 75% of the cryptocurrency industry. More than 30 independent cryptocurrency miners were also surveyed. The survey mainly targeted four areas: exchanges, wallets, mining and payments.

CCAF research focuses include:

1. The exchange sector has the most operating organizations and the largest number of employees, showing a clear geographical distribution. Currently, about 52% of small exchanges hold formal government licenses, compared to only 35% of large exchanges. CCAF said that the recent move by the People's Bank of China will change this situation.

2. It is estimated that the number of active wallets is currently between 5.8 million and 11.5 million. If each person has two wallets on average, there are approximately 2.9 million to 5.8 million active cryptocurrency users. About 52% of wallets provide comprehensive currency trading functions.

3. Although 79% of cryptocurrency payment companies have relationships with banking institutions and payment networks, building and maintaining such relationships is considered the biggest challenge in the field. Fiat-to-cryptocurrency payments account for two-thirds of payment companies’ transaction volume, fiat-to-fiat payments account for 27%, and crypto-to-cryptocurrency accounts for 6%.

4. The well-known mining facilities show geographical distribution characteristics, and the concentration is more obvious in certain provinces in China. About 75% of the large mining pools are in China and the United States. Regarding employees, the study found that 1,800 people in the cryptocurrency industry are full-time workers.

5. A large number of miners do not seem to care whether cryptocurrencies should be taxed, but individual miners who are concerned about the issue hope that cryptocurrencies can be used for taxes.

6. The main concern of large and small miners is the dispute over how the cryptocurrency system should be upgraded.

Hileman said digital currencies like Bitcoin, which has an estimated market value of $27 billion, are not a passing fad. He compared it to high-yielding, high-profile startups like AirBnB.

Although Bitcoin may be the first and most famous cryptocurrency, there are hundreds of other different types of digital currencies. Bitcoin is the leader in both market capitalization and usage among cryptocurrencies, but its market share has been divided among other cryptocurrencies, falling from 86% to 72% in the past two years. The fact that almost 40% of wallets accept various cryptocurrencies also further verifies Bitcoin's current status.

Emerging cryptocurrencies include Ethereum, Dash, Monero, Ripple and Litecoin.

Robert Wardrop

CCAF Co-Founder and Director Robert Wardrop said:

“This benchmark study captures the emerging cryptocurrency industry, taking a comprehensive look at developments in global exchanges, wallets, payments, and mining. It shows that cryptocurrencies like Bitcoin are undergoing some profound changes in the way digital assets are traded, stored, circulated, and issued. The findings will deepen academic and policy research on cryptocurrencies and related projects.”

There will also be research reports on blockchain or distributed ledger technology released in the coming weeks.