Analysis of Employment Trends within the Cryptocurrency Industry by K33 Research
K33 Research recently released new data demonstrating that by July 2023, nearly 190,000 people were employed in the cryptocurrency industry, marking a significant increase from employment numbers before the crypto surge that began in 2020. This data provides valuable insight into the evolving industry dynamics and workforce composition within the world of cryptocurrency.
Detailed Breakdown of Employment Figures
The peak employment within the crypto industry was noted in 2021, with nearly 211,000 individuals being employed across different sectors, likely due to surging prices and skyrocketing company valuations, as per the K33 report. The distribution of workforces within the crypto world is varied and covers numerous pertinent sectors.
- About a third of all employees within the cryptocurrency industry are involved in exchange or brokerage services, reaffirming their vital significance in this industry.
- Another 26% of individuals work for companies that offer a wide spectrum of financial services tied to cryptocurrency.
- The field of Non-Fungible Tokens (NFTs) employs only 6% of the crypto professionals, indicating the niche nature of this sector.
- Contributing their expertise to crucial parts of the industry, 21% of the workforce is engaged in blockchain protocols, analytics, and mining operations.
- The remaining 13% of professionals take up jobs that do not exactly align with the categories mentioned but hold significant roles within the industry.
Methodology for Data Collection
The insightful data was collected through advanced techniques including artificial intelligence-assisted web searches, meticulous manual mappings, and comprehensive LinkedIn searches.
Cryptocurrency Working Model: Remote Hiring to Reduce Costs
Reducing costs while maintaining efficiency is a key focus for many businesses, especially within the crypto industry. A significant number of crypto companies, particularly large ones, often enable remote working, yielding a global pool of employees.
- This eliminates logistical barriers and significantly minimizes the cost involved while ensuring that they source the best skills globally.
- Furthermore, many crypto companies strategically choose headquarters in jurisdictions boasting favorable regulations and lower tax rates.
- These companies often adopt a global employment strategy, either by setting up local offices around the world or promoting a remote work structure. An example is Binance, headquartered in Malta, but with only 0.2% of its employees originating from there.
Distribution of Crypto Workforce Geographically
The Western world is home to a large chunk of crypto workers, with approximately 55% of the workforce residing in North America and Europe. Within this segment, the USA alone accounts for an impressive 29%.
- However, in Asia, India stands as the leading employer in the crypto industry, boasting 20% of the region’s crypto workers, with a focus on developer-related roles.
- Interestingly, despite its historically severe stance on the crypto industry, China is the second-largest employer in the Asian region, making up 15% of the workforce.
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