The rate of bitcoin adoption worldwide peaked in Q2 2021. Ever since adoption has fluctuated in surges, and it dropped in Q3 when the price of cryptocurrencies decreased, increased in Q4 when the price of cryptocurrencies reached new ATH and declined in each of the previous two quarters as the market entered a bear market. It's crucial to remember that worldwide usage is still significantly higher than it was in the year before the bull market.
Consumers in lower-middle and upper-middle-income nations usually depend on digital currencies to transfer money home, protect their assets from fluctuating government-issued currencies, and meet other specific financial demands related to their economies. Additionally, compared to others, these nations favour other stablecoins more. It will be interesting to watch what alternatives the digital currencies sector develops in the upcoming years to boost adoption in upper- and lower-income nations.
Top Crypto Adoption Countries
We could simply rank nations based on the total volume of transactions, which would provide you with a clear picture of where most digital currency activity is taking place. But we're not interested in that. This index aims to determine which countries have the highest percentage of people investing in cryptocurrencies. We also want to emphasise the nations where amateurs and beginners are adopting crypto the greatest, even though institutional engagement is crucial to it.
Besides statistics, we can evaluate the adoption of cryptocurrencies in each country. Countries are leading the way in terms of using cryptocurrencies due to a variety of circumstances, from financial to administrative, in each nation.
Furthermore, there are crypto platforms available in the market for utilisation. If you want to be updated with the market activity, you can use crypto-linking platforms that offer broker connections, such as Immediate Edge. This means that upon registration, you will be directed and assigned to one of their credible brokers to assist you in your crypto journey. To keep going, below is the list of countries that widely accept crypto as legal currency.
In terms of bitcoin adoption, Vietnam comes in first. Vietnam has extraordinarily high community adoption rates for DeFi and P2P crypto technologies. Another source also mentioned Vietnam's enthusiasm for digital currencies. According to a 2020 survey, 21 per cent of Vietnamese users claimed to use or own crypto. According to reports, Southeast Asian nations are particularly fond of crypto-based entertainment, including apps that use the P2E and M2E concepts. This applies to both developers and consumers since Ho Chi Minh City is home to the top-grossing P2E game Axie Infinity, whose success has encouraged other cryptocurrency gaming firms to establish themselves in Vietnam.
The archipelago has demonstrated its ability to accept cryptocurrency. It is another nation in Southeast Asia with a situation that is comparable to Vietnam's in terms of economics and population. The central bank has granted permission to cryptocurrency businesses, and its administration is distributing assets via a blockchain application. The country is quickly emerging as a hub for blockchain-based P2E games.
First on the list is the nearly 200 million-strong country in Africa, which has a youthful, more technologically literate population in general. Nearly one-third of Nigerians had used or held cryptocurrency at some time, while the majority were comfortable transmitting money and making purchases using their phones.
In this nation, which sits at the centre of Europe and Asia, digital currency businesses have grown to such a size that they now fund national sports teams, while sports teams now provide blockchain-based fan coins. Given that the country saw gains of $300 million in BTC last year, it is not unexpected that some Turks have publicly said that Bitcoin is their major option for investing.
With nations like Brazil, Argentina, and Venezuela witnessing significant activity on the crypto front in reaction to their distinct market situation, Latin America has been a stronghold for adopting cryptocurrencies. Peru is the most developed of these countries. However, at least six other Latin American countries also had twofold adoption rates of cryptocurrencies. Peru saw an increase in inflation, just like the other countries in Latin America. Due to the unstable and poor currencies that have resulted, many people now save their wealth in commodities like gold and the USD. The citizenry in these nations is now more at ease using Bitcoin as a way to safeguard their assets as a result of this transformation.
According to the data, many people drawn by growing prices in 2020 and 2021 persisted and continued to invest a sizable portion of their wealth in crypto assets. This is also in line with earlier studies we conducted that revealed digital markets to be surprisingly durable despite previous losses. Vast, long-term investors have held on throughout the bearish trend; as a result, even though their portfolios have depreciated, those damages have not yet been tied in because they haven't been marketed. According to on-chain data, these investors are confident the market will recover, which keeps market essentials in relatively good shape.
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