Top 5 Countries By Crypto Adoption

Top 5 Countries By Crypto Adoption

The Covid-19 pandemic has had many effects on the world economy. In weak economies, the effect was even more devastating and encouraged people to turn to alternatives. In this context, cryptocurrencies were seen as a form of protection against the inflation that plagued countries. In this context, crypto has become a form of protection against the inflation that plagues countries.

Recently, the issue of adopting Bitcoin in countries took an unexpected turn, when the president of El Salvador managed to pass a law to make Bitcoin legal tender, alongside the dollar. Although the news has excited the cryptomarket, the adoption of cryptocurrencies has been underway for some time.

Global Macro Investor research compares Bitcoin adoption with Internet adoption and shows that cryptocurrency is at the 1997 Internet adoption threshold. However, Bitcoin has the fastest adoption rate of any technology in history (113 % per year against 63% for the Internet). In other words, adoption is accelerated, but there is still a long way to go.

Crypto Adoption

Source: Raoul Pal/GMI

Willy Wo estimates that if the adoption curve continues to grow, in the next 4 years Bitcoin should reach the 1 billion user mark. However, despite the adoption of Bitcoin being global, some countries have stood out and led this movement. You might be surprised by the top 5 countries in Bitcoin adoption.

Ukraine – 12% of the Population

Ukraine leads the ranking of crypto adoption, with an estimate that more than 12% of the population uses digital assets in some way. Considering the population of 42 million, that’s 5.5 million people currently own crypto.

There are several factors that seem to encourage adoption in Ukraine: an unstable economy, the devaluation of the Ukrainian hryvnia, the absence of a national exchange, few investment options, and the high barrier to entry for existing opportunities. Adding these factors with tech-savvy citizens, there is an almost magical formula for Ukrainians to look for cryptocurrencies.

As of March 2021, 652 Ukrainian civil servants reported owning 46,351 Bitcoin. The members of the national parliament, Verkhovna Rada, represented 3.7% of high-ranking cryptocurrency holders.

Russia – 11.91% of the Population

Historically, Russia has a controversial relationship with cryptocurrencies. Although cryptocurrencies are not illegal in the country, several services and websites related to crypto have been banned and Russian public servants were banned from owning cryptocurrencies. But that doesn’t seem like an impediment to adoption in the country. It is estimated that more than 17.3 million people, 11.9% of the total population of Russia, have crypto.

Russia suffers from a series of economic sanctions from the United States, which makes international transactions complicated. Cryptocurrencies offer Russia’s government and citizens a way around these sanctions. In 2018, Georgiy Muradov, Putin’s representative, told RIA Novosti that the region was developing a cryptocurrency investment fund to avoid banking restrictions and ensure the implementation of investment programs in Crimea.

Venezuela – 10.34% of the Population

Venezuela crypto adoption

It is estimated that nearly 3 million people have cryptocurrencies in Venezuela, about 10.3% of the country’s total population. Due to the country’s restrictions and little development in the industry, much of the trading takes place through peer-to-peer transactions. Venezuela’s Bitcoin Local alone is responsible for moving over US$7 million weekly in crypto.

In 2013, Venezuela abandoned trade and exchange relations with the US dollar. The result is hyperinflation and an almost useless bolivar. The country’s adoption happens because despite the volatility of Bitcoin, it is much more stable and secure than the country’s national currency.

Kenya – 8.52% of the Population

kenyan crypto adoption

4.5 million people, 8.5% of Kenya’s total population own crypto. As of January 2018, Kenya’s Bitcoin share represented more than 2% of the country’s Gross Domestic Product (GDP). Africa has been going through a major economic transition, with most transactions being carried out via mobile, facilitating the adoption of crypto. In addition, a large part of the interest in cryptocurrencies in the country concerns international remittances, arising from workers who go abroad and need efficient mechanisms to send money back to their country of origin.

USA – 8.31% of the Population

usa crypto adoption

An estimated 27 million people, 8.3% of the total US population, own crypto. Although the country is one of the most robust and developed economies in the world, the adoption of crypto in the United States is also being driven by fears of inflation in the country. During the COVID crisis, the US printed trillions of dollars and caused inflation to rise 5% in 12 months, raising the Consumer Price Index (CPI) to the highest level in the last 13 years.

Data show that crypto ownership is significantly higher among the very rich. A survey shows that among cryptocurrency holders, 70% of them have an annual income in excess of $1 million. This may indicate that, in addition to seeking a way to protect this capital, adoption may also be being driven by investors seeking to diversify their portfolios, taking advantage of the decorrelation of crypto with stocks.

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