Cryptocurrency has been winning favors amongst the public, despite various grievances and issues surrounding it. More importantly, the world continues to invest in crypto despite China still not allowing any firms to operate. In fact, global adoption rates have managed to increase by 881% over the past year, despite China’s best efforts.
Worldwide adoption of cryptocurrency rose to 24 points during the second quarter of the current year. The same quarter of the previous year showed an adoption rate of just 2.5 points, which shows just how far cryptocurrencies have managed to come. The 2021 Global Cryptocurrency Adoption Index by Chainalysis found this data by ranking 154 countries. It ranked these countries on the basis of their business and personal transactions, as well as savings.
The report also went into detail about how well these countries are managing crypto, as well as seeing how successful they might be. Venezuela, Vietnam, Nigeria, and Kenya were some of the highest countries on the index, in part, due to their massive transaction volumes. The Adoption Index takes into account transactions on peer-to-peer platforms. The index also adjusts its figures with per capita purchasing power parity, as well as how much internet the country uses.
While the US initially was on the sixth, it soon fell to eighth. On the other hand, China went from fourth to 13th, which was quite a steep fall. The reason for this massive fall was that the P2P trade volume within the country was reduced by a significant amount in these countries.
Almost all of the emerging markets are countries that suffer from very serious currency devaluation. And even though the reason for people adopting crypto around the world is different, almost all emerging markets have the same reason. With the help of cryptocurrencies, people in these markets are able to preserve their savings while still making a profit. On the other hand, institutional investment mainly fuels adoption throughout Eastern Asia, Western Europe, and North America.
Vietnam ranked first throughout the index with India coming in at a close second. Pakistan was third whereas Ukraine was fourth in the list. In fact, some of the top 20 countries in the index are developing countries like Kenya, Togo, and Tanzania.
The report goes on to mention that currency devaluation is a serious problem in all of these emerging markets. Therefore, citizens here will invest in cryptocurrencies through P2P platforms, to preserve their value. Other than these people, there are also people who use cryptocurrencies to carry out international transactions. Whether they are sending remittances to their loved ones or they are buying goods, they will make use of cryptocurrencies.