The year 2020 was crucial for Bitcoin, as a significant influx of institutional and private capital propelled the asset to new all-time highs. Thus, in March 2021, bitcoin reached its highest point by crossing the symbolic mark of $60,000.
It is wise to ask who has benefited the most from this price surge? Which countries have seen the biggest gains from their bitcoin investments?
This is the question that prompted Chaina lysis to conduct a study on estimated bitcoin gains in 2020, based on the investors' country of origin.
Before starting, it should be remembered that the geographic analysis of cryptocurrencies is difficult to carry out. It is not possible to know precisely where the different actors in all recorded transactions are located. In short, it is a question of considering this element in the assessment of this study.
Which countries have recorded the most gains from investing in Bitcoin?
The graph above shows the ranking of the 25 countries that benefited the most from capital gains on Bitcoin for the year 2020.
In first place, unsurprisingly, we find the United States in first place. American investors earned more than $4 billion, which is three times more than the second-place country, China. The dominance of the United States can be explained by many factors including greater Bitcoin education in terms of quantity, a more mature market with many companies established in the country and it is also one of the countries with the more bitcoin miners in the world. The study states that it is also very likely that American investors sold their bitcoin at higher prices than those in other countries.
Thus, among the top 5 countries in the ranking, in addition to China and the United States, are Japan, the United Kingdom, and Russia. The other 5 countries are Germany, France, Spain , South Korea, and Ukraine.
Overall, these are countries with significant GDPs, representing countries with solid financial infrastructure, thus facilitating investment and trading in cryptocurrencies.
Emerging countries create a surprise
What's most surprising about the chart is the position of certain countries not considered to have high rates of banking penetration. This is particularly true of Vietnam, which, despite economic growth of around 6% in 2022, ranks 53rd globally in terms of GDP. Vietnam is classified as a lower-middle-income country by the World Bank. It ranks 13th, closely following Canada and well ahead of countries like Australia, Belgium, and Switzerland . In other words, Vietnamese investors have seen greater gains from their Bitcoin investments than those in the aforementioned countries. This demonstrates that these are countries with high Bitcoin adoption rates, despite the existing technical and cultural challenges.
Other countries like the Czech Republic have a rather astonishing ranking. Indeed, the country totaled gains reaching $281 million, placing it in 18th place. The country is also one of the lower income countries according to the World Bank. Likewise, remember that the inhabitants speak Czech, a Slavic language only spoken in the country. Thus, just as for Vietnam, these are countries which show a very high level of education regarding bitcoin, while there is little documentation on the subject, compared to resources in the English language.
Study methodology
To conduct its study, Chainalysis considered on-chain transactions to cryptocurrency exchanges. Estimated profits are based on the price difference between Bitcoin when withdrawn from the exchange and its price at the time of receipt. Gains (or losses) are then allocated among different countries based on the proportion of web traffic originating from each country on the exchange's website. The methodology cannot account for VPN use cases and may therefore be approximate in this respect. It is important to note that the study does not consider gains/losses on Bitcoin that was not withdrawn from the exchanges.
Bitcoin, a new opportunity to seize for emerging countries
According to Chainalysis, analysis of bitcoin gains by country shows encouraging prospects for many countries. This has enabled investors from emerging markets to access financial services that were previously difficult to access.
The study also shows that countries that restrict the use of cryptocurrencies are also depriving themselves of a significant financial windfall. It is indeed a financial innovation which can prove very financially profitable for individuals as well as for States.
Now all that remains is to realize it…
See also:
- Despite obstacles, bitcoin is gaining importance in Senegal
- Moroccans increasingly attracted to bitcoin
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