Cryptocurrency News

Smaller Countries Are Punching Above Their Weight in Bitcoin Gains


Emerging markets tend to be above their own weight when it comes to bitcoin (B T cAccording to a new report from cryptocurrency analytics firm Chainalysis, the investment offers further evidence of growing adoption around the world.

Geographic analysis of real bitcoin profits manifest Chainalysis said investors in the United States earned returns of $4.1 billion last year, more than three times that of second-ranked China. Although economic giants such as Japan, the United Kingdom, and Germany were at the top of the list, many countries are investing heavily in bitcoin relative to traditional economic metrics such as GDP, or GDP.

In other words, GDP does not appear to be a strong indicator of who is generating high returns on investment in bitcoin.

Smaller economies have a larger representation in terms of actual bitcoin profits. Source: Chainalysis.

an exceptional case Vietnam, a country that ranks 53rd in GDP but ranks 13th when it comes to realizing bitcoin gains. The East Asian country’s rapid pivot from a centrally planned economy to market reforms has allowed its poverty rate to drop from over 70% to below 6% since 2002, accordingly to the World Bank.

Chainalysis also drew attention to the Czech Republic, Turkey and Spain, which are ranked 54th, 25th and 19th respectively by GDP, but all fall in the top-20 in terms of bitcoin gains.

2020-21 bitcoin bull market Starting in October last year, as the price rose from around $11,000 to over $29,000 by December 31st. bitcoin price will be Finally peaked near $65,000 in April before rapid improvement.

Chainalysis was able to extrapolate country-specific data by analyzing location-based web traffic on various cryptocurrency exchanges. Cointelegraph asked the analytics firm how it enabled for the possible presence of VPN use by Exchange users. While Chainalysis acknowledged the limitations, the company stood by its rigorous analysis of transaction data, stating:

“We acknowledge that there are clear limits to the use of web traffic data, including the use of VPNs and other products that may mask the geographic origin of web activity. However, the data that makes up the trends we discovered is comprised of millions of transactions, so this activity would need to be extremely broad in order to meaningfully affect our data. “

The report reveals what many crypto enthusiasts have always been saying – namely, that bitcoin gives investors access to high-performing assets in emerging markets. This is especially important in areas that are facing high inflation and strict government control On bank deposits and withdrawals.