BIS Cryptocurrency Adoption Report: 70% of Users Purchase BTC at $20,000 and Above, Active User Cases Exceed 700 Million

The Bank for International Settlements (BIS) has established a new database of cryptocurrencies to investigate factors driving their adoption. The data covers retail usage of cryptocurrencies in 95 countries/regions from 2015 to 2022. Through data analysis, BIS shared some statistical findings, revealing that the majority of investors are in a loss-making position, with the price of cryptocurrencies being the main attraction for investors to enter the market.

Adoption of Cryptocurrency Exchange Apps

According to a report by BIS, from August 2015 to November 2021, the price of Bitcoin surged from $250 to $69,000. During this period, the monthly average daily active users increased from about 119,000 to over 32.5 million.

During the two periods of rapid price increase at the end of 2017 and the beginning of 2021, 105 million and 510 million new monthly active users joined, respectively. By mid-2022, there were approximately 700 million active user cases and over 565 million downloads of cryptocurrency exchange apps.

Additionally, in advanced countries such as the UK, Hong Kong, and New Zealand between 2021 and 2022, the number of cryptocurrency exchange app downloads exceeded 15,000 per 100,000 people, peaking at over 30,000 downloads per 100,000 people.

During the analysis period, the adoption rate of cryptocurrency exchange apps in terms of downloads per 100,000 people was highest in Turkey, Singapore, the US, and the UK, and lowest in China and India, where retail use is hindered by regulatory restrictions, according to BIS.

Majority of Users Currently at a Loss

Based on the above, the download volume of cryptocurrency exchange apps tends to increase with rising prices. While the data does not reflect actual trading behavior, assuming users invested in Bitcoin on the day of download, approximately 73% of users made their purchases when BTC was above $20,000, resulting in initial losses.

Furthermore, BIS further assumes that after downloading the app, users make a $100 monthly investment in Bitcoin, leading to 81% of users being in a loss position. For a median user, the loss amount is $431, accounting for 48% of the total investment of $900.

Usage Proportion of Cryptocurrency Masses

When categorizing cryptocurrency users by gender, it is found that the proportion of male users far exceeds that of female users, at about 65%. Among them, males under 35 account for the majority at 40%, while females in the same age group constitute less than 20%.

Additionally, the willingness of male users to bear financial risks is significantly higher than that of female users, but decreases with age. BIS states that these data indicate that speculative crowds attracted during the rise in cryptocurrency prices have a higher risk tolerance.

Reasons for Investing in Cryptocurrency

Regarding the reasons for investing in cryptocurrency, it may stem from distrust of domestic institutions or fiat currencies, value storage, or cross-border transfers, among other factors. However, according to BIS surveys, the main reason still comes from cryptocurrency prices.

Whether due to macroeconomic control factors or national characteristics, Bitcoin prices have brought in over 50% of new users. Other factors have a minimal impact, with only gold prices, at 23% in macroeconomic control factors, having a noticeable influence.