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Where new Bitcoin users are around the world

Global adoption of cryptocurrencies increased 881% last year, with Vietnam, India and Pakistan firmly leading, according to new data from Chainalysis.

This is the second year that blockchain data companies have released the Global Cryptographic Adoption Index. It usually ranks 154 countries according to indicators such as peer-to-peer exchange trading volume, rather than total trading volume in favor of high-level developed countries. Professional and institutional crypto buy-in.

The point of this index is to capture the adoption of cryptography by the “general public” and “focus on use cases related to transactions and personal savings, not transactions and speculation.” Indicators are weighted to incorporate the wealth of the average person and the value of money in a particular country in general.

The top 20 countries are mainly composed of emerging economies such as Togo, Colombia and Afghanistan.

Meanwhile, the United States fell from 6th to 8th, while China, which cracked down on cryptocurrencies this spring, fell from 4th to 13th.

Chain analysis has attributed rising recruitment levels in emerging markets to several key factors.

First, in countries such as Kenya, Nigeria, Vietnam and Venezuela, adjusting per capita purchasing power parity and the population using the Internet can result in huge transaction volumes on peer-to-peer (P2P) platforms.

Chainalysis reports that many residents use P2P cryptocurrency exchange as a major lamp to cryptocurrencies. This is often due to inaccessible centralized exchanges.

The report also states that residents of these countries often turn to cryptocurrencies to maintain savings, send and receive remittances, and carry out commerce in the face of currency devaluation.

Matt Ahlborg, a peer-to-peer data analyst, said Vietnam is one of the top markets for Bitrefill, a company that helps customers live in cryptocurrencies by using Bitcoin to buy gift cards. I’m talking to.

“Vietnam stood out to me because it dominated the index,” explained Kim Grauer, research director at Chainalysis, who edited the report.

“Vietnamese people have a history of gambling, and young tech-savvy people have heard from experts that investing in traditional ETFs that facilitate the adoption of cryptocurrencies has little to do with their funding.” Continued.

According to Grauer, Nigeria is another story. “It has a huge commercial market for cryptocurrencies. More and more commercial transactions are taking place on cryptocurrency rails, including international trade with Chinese counterparties.”

According to London-based fintech data analyst Boaz Sobrado, these top-ranked countries have something else in common. “Many have capital restrictions or a strong immigrant and immigrant population,” Sobrad said.

Take, for example, Afghanistan, a country currently in turmoil due to the recent overthrow of the government.

“Afghanistan makes sense from a capital regulation perspective, given the difficulty of getting money in and out,” Sobrad said.

Given that Afghanistan is one of the poorest countries in the world, revisions to purchasing power parity and gross domestic product may have helped its placement.

Analysts point out that measuring cryptocurrency adoption at the grassroots level is not easy.

Sobrado suggests that “the methodology happens to have a huge blind spot in Cuba.”

“Unlike many other countries, sanctioned countries do not have clear data on the P2P market,” Sobrado said.

As such, he believes that licensed jurisdictions will inevitably be undervalued simply because it is more difficult to track those transactions.

Ahlborg points out that there is no perfect way to measure per capita global cryptocurrency adoption, but says the index is “one of the best indexes we have.”

Where new Bitcoin users are around the world

Source link Where new Bitcoin users are around the world

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