Analysts of the Chainalysis platform conducted a study of the geographic location and amount of earned money by cryptocurrency lovers in 2020. The results turned out to be very interesting: it turns out that many young crypto-millionaires come from countries with a developing economy, not an advanced one. That is, cryptocurrencies find their fans where traditional financial institutions are not doing their job well yet. This means that blockchain assets really fulfill their role in improving the lives of ordinary people. Let’s talk about the details of the study in more detail.
Where do you like Bitcoin the most?
A geographic analysis of the realized profits of Bitcoin investors showed that crypto enthusiasts in the United States earned roughly $ 4.1 billion, which is more than three times higher than that of China, which ranks second in the ranking. While economic leaders such as Japan, the UK and Germany were at the top of the list, citizens of some countries are investing much more in Bitcoin compared to traditional economic indicators. Among the latter, the authors of the study place particular emphasis on gross domestic product.
Realized profit from the crypto market in 2020 by different countries
In other words, GDP is not a clear indicator of who has the greatest return on investment in BTC, Cointelegraph reports. Vietnam is a striking illustration here – a country that ranks 53rd on GDP, but 13when it comes to the amount of profit from crypto investments. Its sharp turn from a centrally planned to a market economy in East Asia has helped reduce poverty, according to the World Bank. from more than 70 to less than 6 percent since 2002.
Chainalysis also drew attention to the Czech Republic, Turkey and Spain, which occupy 54, 25 and 19 seats by GDP, respectively, but this includes in the top 20 in terms of profit growth on crypto investments.
At the same time, representatives of Chainalysis note the limitations of their capabilities when conducting such studies. Still, many cryptocurrency enthusiasts hide their real IP addresses with VPN services.
We acknowledge that there are clear restrictions on the use of web traffic data – including the use of VPNs and other products that may obscure the geographic origin of web activity. However, the data shaping the trends we investigate includes millions of transactions, so this practice must be very widespread in order to significantly influence our research.
This means that Chainalysis employees assume that the percentage of cryptocurrency enthusiasts using such tools is relatively small.
In general, the report already confirms the opinion widespread in the cryptocurrency community: the largest increase in popularity for Bitcoin and other coins is obtained where people already have free funds for investment, but the traditional sector of the economy is not as attractive as the prospects for the growth of digital assets.
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