Since its humble beginnings back in 2009, Crypto has made great strides. Crypto is now a major player in finance and supply chain management. The global crypto market is estimated to be worth approximately $1 trillion. This growth is due to the rapid adoption of cryptocurrency by both individuals and businesses. Many governments are skeptical about crypto’s impact on other countries. What countries use crypto the most despite all these regulatory hurdles?
It is difficult to find crypto users
It might seem easy to find out which countries are using crypto tokens the most. It is not easy to identify who is sending a transaction or where it came from because of the main advantages of crypto, anonymity and freedom of transactions. The blockchain does not contain any IP addresses or geographical information.
Blockchain data firms employ complex tracking and traceability methods to solve this problem. These methods allow you to find other information that you might share on public platforms, as well as your wallet address.
It is possible to link your wallet address to your identity by posting it on social media such as Twitter. Similar to the above, most crypto token users purchase their tokens through centralised crypto exchanges. These exchanges often offer wallets from a variety of addresses. It is possible to see the address from which you purchased your tokens if your address falls within this range.
Chainalysis, a blockchain analysis company, has provided the following information. The usage rate is more important than total usage. Countries with higher crypto usage rates are therefore ranked higher.
Which Countries Use The Most Cryptocurrency?
VietnamIndiaPakistanUkraineKenyaNigeriaVenezuelaUnited StatesTogoArgentina
What Do The Data Tell Us About Our Future?
Many of you may be surprised by the above-mentioned list. Noting that crypto tokens are more widely used in countries like Japan, Russia, and China, it is important to remember that only a small percentage of the population uses them.
The data has revealed three key findings.
Rising Markets have higher adoption rates
The majority of countries listed in the top 10 are either developing or emerging economies. The majority of emerging economies don’t have centralised exchanges that allow large amounts of crypto to be traded daily. They also receive high remittances abroad.
These cases can be avoided by using crypto to solve problems such as currency depreciation or international payments. To ensure that their savings don’t lose value, users invest in crypto tokens. To avoid restrictions imposed by the government on international payments, they can also be used for crypto tokens.
Larger Countries Reduce Their P2P Tradings
Developed countries have larger markets that are able to handle more money. These countries are attractive to large traders and investment companies, rather than individual investors. More centralised exchanges are entering markets like Japan and the US as the market’s value rises.
If you purchase a token from a centralised exchange it will usually be added to your account. To be able to trade with your tokens, you must manually withdraw them into a crypto wallet. Trades are not transactions between wallets. They are reflected only in the order book of an exchange.
Retail Individuals Are Largest Segment
Most transactions in crypto appear to be made through P2P exchanges located in emerging economies. This makes it clear that the majority of users are small retail investors. Companies continue to transact with fiat money, rather than crypto tokens.
Although there is more volume traded in developed countries than between crypto wallets, it does not mean that there is more. The majority of trades take place between accounts on one centralised exchange, without changing the blockchain.
Continue reading: Cefi vs Defi – Comparing the Features
What does the future hold for crypto adoption?
The future is bright, regardless of whether individuals trade in crypto or institutions do. Crypto adoption continues to grow year after year. The crypto industry is always innovating thanks to the introduction of NFTs, decentralised finance (Defi), and the metaverse. This growth makes crypto more mainstream and encourages more people and businesses to use it.
Lastly, crypto is being considered by some governments. Many countries are currently working on Central Bank Digital Currencies. These crypto tokens are issued by the government and are being used in many places around the globe. The crypto industry will be a great success with more regulation and government support over the next few years.
Which Countries Use Crypto Most? ZebPay.
