ZoneBitcoin EditorialThe 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 Chinalysis carried out a study on estimated gains in bitcoin, in 2020, depending on the country of origin of investors.
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 first 5 countries in the ranking, we find in addition to China and the United States, Japan, the United Kingdom and Russia. The 5 other countries include 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 the graph shows is most surprising is the position of certain countries which are not considered countries with a high rate of banking. This is particularly the case of Vietnam, which, despite economic growth of around 6% in 2022, occupies 53rd place in the world in terms of GDP. Vietnam is one of the countries. lower middle income according to the World Bank. We observe that it is in 13th place in the ranking, closely following Canada and well above countries like Australia, Belgium and even the Switzerland. In other words, the Vietnamese have recorded more gains with their investment in Bitcoin than those in the countries mentioned above. This shows that these are countries with high adoption of Bitcoin, despite the technical and cultural difficulties that exist.
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 carry out its study, Chainalysis took into account on-chain operations towards cryptocurrency exchange platforms. Estimated profits are based on the differences in the price of bitcoin when it was withdrawn from the platform with its price when it was received. The gains (or losses) are then distributed among the different countries based on the proportion of web traffic coming from each country to the exchange's website. The methodology cannot take into account cases using VPNs and can then prove to be approximate on this point. It is important to note that the study does not take into account the gains/losses of bitcoin which has not been withdrawn from exchange platforms.
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…
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