ZoneBitcoin EditorialContrary to what one might believe - at first glance - the populations that use cryptocurrencies the most are those in developing countries. In fact, in the top 20 countries that have adopted the most (quantitatively) cryptocurrencies, we find developing countries in first place.
Here is the list of the 20 countries that use cryptocurrencies the most, in 2021, according to the report published by Chainalysis.
According to this study, crypto adoption has increased by 880% over the past year. To establish this classification, the study focuses not on gross transaction volume but on peer-to-peer trading activity.
Thus, according to the Chainalysis report, the countries with the highest crypto adoption index are Vietnam, India, Pakistan andUkraine. By the way, the fact that Ukraine has shown itself to be so "open" to crypto donations is a great proof that the country is used to cryptocurrencies. Moreover, in 2022, it is India ranks first as the country with the highest adoption of cryptocurrencies.
Asia clearly remains the leading continent in terms of adoption and use of cryptocurrencies. For years, Nigeria has remained the country with the population that uses cryptocurrencies the most. In terms of crypto adoption, many experts believe that Africa will be the driving force.
Cryptocurrencies as a way to circumvent the inflation of certain currencies
Developing countries are proving to be the countries most interested in cryptocurrencies, and there is a good reason for that.
In fact, very often, the population prefers to use cryptos to protect themselves against the inflation of their state currencies. This is typically the case ofArgentina for example, which has experienced the highest inflation rates in economic history for several years.
Many Venezuelans, who are experiencing a record inflation rate of 472%, are turning to cryptocurrencies. We also remember the state cryptocurrency PetroDollars set up by the government itself. Thus, according to the Triple A report, 10,23% of the population of Venezuela owns bitcoin. In France, this rate is 2%.
Likewise, in the Chainalysis ranking, we find countries like Togo, Afghanistan or the Philippines. Moreover, it is often said that the game Axie Infinity first exploded among Filipinos who managed to generate a local salary with this game.
Different investor profiles in countries with more established economies
The other big difference between rich countries and countries with a more fragile economy also relates to the profile of the investor.
In developing countries, it is more individuals who buy and trade cryptocurrencies. As for richer countries, it turns out that it is financial institutions and businesses that buy the most cryptocurrencies.
Argentina and Brazil are the Latin American countries that use decentralized finance protocols the most. It is already an activity which shows greater enthusiasm than that of countering inflation. These could then become important countries in the development of DeFi.
Some populations use peer-to-peer platforms by default
According to the Chainalysis study, the number of individuals using peer-to-peer P2P cryptocurrency exchanges are doing so out of necessity rather than desire. In fact, very often, citizens of these countries do not have access to centralized exchanges. Thus, they have no other choice but to use platforms like PAXFULL for example.
The problem with P2P trading is that it is not really traceable on a blockchain other than as a simple transaction. Other uses of this type such as buying gift cards like Amazon or others on platforms like Bitrefill are also widely used.
Conclusion on global usage and adoption
Currently, there are over 300 million crypto users worldwide, according to a global estimate.
The adoption of cryptocurrencies is widespread around the world. All continents now use cryptocurrencies. The continent with the most users is undoubtedly Asia.
Some explain this preponderance of Asia with the fact that the creator of Bitcoin has a Japanese name: Satoshi Nakamoto. Even though we do not know the origin or citizenship of the founder of Bitcoin, for a long time (at the beginning anyway) it was thought that he was Japanese.
That said, looking at the words written on the forums and his writing style, many people today think that most likely, he is (was?) American.
In short, what emerges is that very often, in countries with unstable (and inflationary) economies, governments are not “open” to cryptocurrencies.
The people, worn out by constantly losing purchasing power, naturally turn to bitcoin. This is the case of the populations of Brazil, from Nigeria, Pakistan and Colombia.
The country that stands out in this race is the United States. Around 8% of the US population owns cryptoassets. Furthermore, the largest companies (like Coinbase) and investment funds are mainly located in the USA. Finally, we can cite large-scale projects such as cities such as Miami using local cryptocurrencies (see CityCoins) are realities in the country.
We see in this study that the USA is in a very good place to dominate and be a leader in the field of cryptocurrencies….
Lack of Internet Access Limits Crypto Adoption
Not all countries experiencing high inflation rates are switching to cryptocurrencies. Sometimes there may be other obstacles such as internet access. For example, Sudan, Syria and Lebanon are countries that are not experiencing high adoption of cryptocurrencies while the national currency is unstable.
This is mainly explained by the difficulty for these populations to have access to the internet. This severely limits access to education and knowledge regarding cryptocurrencies. Indeed, as a general rule, it is online media (like Zonebitcoin 😇) and social networks that contribute to mass adoption.
So, not having internet can be very disabling…
Residents of developing countries prefer to use stablecoins
Another thing the study tells us is that users in developing countries tend to prefer investing in Bitcoin and stablecoins. Moreover, they buy more stablecoins such as those indexed to dollars like the Tether (USDT) For example. This is because cryptocurrencies also serve as payment currencies for services and goods internationally.
Populations in rich countries are more interested in more volatile tokens because they are better able to speculate and trade. They are also the ones who will use DeFi more to grow their assets.
People in poorer countries seek above all to protect themselves against inflation.
So here is the broad outline of studies on the mass adoption of cryptocurrencies.
- See the Chainalysis study
- The study of Global Crypto Adoption
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Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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