The document summarizes the key findings of the 2018 Global Cryptoasset Benchmarking Study conducted by Cambridge Judge Business School. Some of the main findings include:
- The cryptoasset industry has grown significantly since 2017, with the number of full-time employees at crypto firms increasing over 150% between 2016 and 2017.
- Crypto usage also grew substantially, with exchanges and payments providers now serving over 130 million user accounts collectively.
- Most crypto firms have implemented Know-Your-Customer and Anti-Money Laundering programs to comply with regulations, and over half are seeking licenses to legally operate.
- Bitcoin still dominates the crypto market in terms of transaction activity, though other coins are gaining ground. The
1. Cambridge Judge Business School
THE 2ND GLOBAL
CRYPTOASSET
BENCHMARKING STUDY
Michel Rauchs
Luxembourg Bitcoin Meetup
Luxembourg-City, 20 December 2018
2. Hi there!
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
Michel Rauchs
Cryptocurrency and Blockchain Lead
Cambridge Centre for Alternative Finance
April 2017
September 2017
August 2018
December 2018
https://www.jbs.cam.ac.uk/faculty-
research/centres/alternative-finance/publications/
3. Evolution of cryptocurrencies in 3 phases
Native digital asset of a stand-alone public blockchain
2009
Money & Payments
2011 - 2014 2015 – Current
• Mostly Bitcoin clones
• Some exceptions
• Focus beyond monetary use
cases (e.g. file storage)
• Creating “decentralised”
platforms
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
4. The rise of “utility tokens”
2011 - 2014
Native digital asset of a “decentralised” application (“dApp”) built on top of an existing public blockchain
2015 – Current
• Mostly built on Bitcoin
• Alternative: launch new altcoin
• New smart contract platforms
• Token standards (e.g. ERC-20)
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
5. Recap: 2017 Global Cryptocurrency Benchmarking Study
5
• Objective: provide an empirical analysis of the
cryptoasset ecosystem
• Methodology: collect non-public “off-chain” data via
surveys and combine with public data sources
• Release: 6 April 2017
Much has happened since!
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
6. Let’s take a look at the 2018 study sample
Countries
covered
47
Total
responses
184
8. Focus is put on four key industry segments
8
Mining StorageExchange Payments
Service Providers
72% 61% 49%
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
9. Cross-segment expansion trend observed in 2016/17 continues
9
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
10. A global industry in the making
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
11. Full-time equivalent (FTE) staff levels have soared in 2017 and Q1 2018
11
Median Firm Size (FTE)
Quarterly
Growth
54%
YoY
Growth
160%
2018 Q1 20
2017 YE 13
2016 YE 5
Aggregate Industry FTE Growth
Rates
Quarterly Growth
2018 Q1
YoY Growth
2017
78%
164%
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
14. Service providers manage more than 130 million user accounts
14
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
15. Individuals are still dominating the customer base
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
17. Bitcoin clearly dominates in terms of on-chain activity
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
18. Average off-chain transaction sizes have significantly increased
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
20. Mapping monetary flows between ecosystems
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
21. Compliance teams are becoming commonplace in the industry
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
22. Half of crypto-only services implement KYC/AML programmes
14%
0% - 80%
Account Closure /
Refusal to Open
Industry Average
Range
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
23. Most entities implement KYC/AML checks upon service launch
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
24. Growing interest in obtaining licenses can be observed
24
Current
License
Outstanding Application Intention to Apply
Cryptoasset-
only
Fiat-supporting
26. There are three major types of concentration
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
28. A few pools dominate the landscape
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
30. Energy mix is important but tends to get ignored
30
60%
9%
31%
Total
128 mining farms
N/AEnergy mix includes renewables Energy mix does not include renewables
Share of Renewable Energy in the Energy Mix
by Mining Farm
56%
18%
26%
Total
1745 MW
Energy mix includes renewables Energy mix does not include renewables
Share of Renewable Energy in the Energy Mix
by Identified MW
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
31. Final thought: we have been there before
Michel Rauchs - Key Findings of the 2nd Global Cryptoasset Benchmarking Study | Luxembourg Bitcoin Meetup | Luxembourg-City, 19 December 2018
