The cryptocurrency world is an exciting place. There’s much to keep track of, from buying your first coins to monitoring the price. And it’s only getting more complex. There are over 1,500 different cryptocurrencies on the market, with new ones popping up regularly. But another critical measure is how much cash is moving around the space. To get started with trading cryptos, visit the official website of WWW.BITIQ.ORG.
This article looks at surprising statistics about how much cash is moving various players in the cryptocurrency world. How much money is going from venture funds into new projects? Are people investing in ICOs or staying away from them? What about hedge funds? Read on to find out for yourself.
What Amount of Cash Has Been Put into the Blockchain Industry?
Let’s start with the amount of money invested in the crypto space. It includes venture capital and money raised through Initial Coin Offerings (ICOs). The numbers aren’t exact since they’re estimates. Additionally, they are unrelated to the overall number of dollars in existence. They do, however, offer us a few intriguing insights. Start with angel investors, please. We can see that investment in the crypto space has ticked up significantly over the last few years. But lately, it’s been on the decline. In 2018, the amount was down by half compared to 2017. What about ICOs? ICOs have grown tremendously in recent years. In 2017, the first quarter was the biggest for ICOs. The ICO market raised almost $4 billion. In the same period in 2018, ICOs raised nearly $6 billion.
Interestingly, ICOs are starting to see a decline in interest as the year progresses. Just under 50% of what was collected in the initial quarter of 2018 was raised in the 2nd period. And the third quarter of 2018 saw even less money raised than the second.
How much is electronic money presently kept in wallets?
It’s a bit difficult to trace this, though. It’s not like there’s some central database where we can see the latest figures. But there are a few different estimates. Let’s start with the amount of bitcoin that’s currently in circulation. Many sources estimate that around 16 million bitcoins are in circulation.
That’s quite a lot of money. Again, there are a few estimates out there. Some go as high as 50%. With this in mind, somewhere between $50 billion and $100 billion worth of bitcoin is currently in circulation.
Where is All the Cash Coming From?
This one is a bit tricky too. We can’t just look at the total amount of cash in the crypto space and decide where it came from. It’s essential to look at who holds it. It will tell us which countries are involved in the crypto world and how they’re involved. Blockchain projects have estimated that the US is the largest holder of bitcoin, with around $40 billion.
They’ve also estimated that Asia is the second largest bitcoin holder, with approximately $20 billion. Another source estimates that Asia is the biggest holder of bitcoin, with the US in second place. In terms of ICOs, another source estimates that Asia is the biggest holder of ETH, the currency used for ICOs. They estimate that ICOs have been responsible for almost a quarter of the ETH in circulation.
What Does This Data Mean?
This article has looked at several ways to measure how much money is moving around the crypto world. First, we can see that the amount of money going into venture capital has declined since 2017. Meanwhile, the amount of money going into ICOs has been growing. There’s likely less money going into ICOs because the space is getting more regulated. And more regulation means less money flowing into the system. More money has also been going into crypto wallets.
It implies that further individuals are purchasing crypto and keeping it in one’s wallets. This data also tells us which countries are involved in the crypto world. Unsurprisingly, the US and Asia are the two primary holders of bitcoin. They are two of such wealthiest nations. It may be surprising that Asia is the biggest holder of ETH, the currency used for ICOs. It is fascinating because Asian economies are traditionally less involved in the global financial system.