It is not always the world’s economic superpowers that are paving the road for bitcoin adoption to enter mainstream markets. The research company created a brand-new approach called the Global Crypto Adoption Index to track bitcoin adoption among common people worldwide. The goal is to draw attention to the nations where the majority of people have shifted the majority of their financial activities to cryptocurrencies.
Although trading and speculating are vital to the bitcoin economy, our index aimed to emphasize widespread user acceptance, according to the statement.
The firm’s Global Crypto Adoption Index evaluates four metrics: on-chain cryptocurrency value received, on-chain retail value moved, number of on-chain crypto deposits, and exchange trading volume. It takes into account each nation’s population and the size of its economy.
The company’s analysis of 154 nations revealed that Ukraine, Russia, and Venezuela have the highest rates of crypto adoption worldwide. China, Kenya, the United States, South Africa, Nigeria, Colombia, and Vietnam complete the top 10.
The First Nation to recognize Bitcoin as the mode of payment
El Salvador made history in September when it became the first nation to officially recognize Bitcoin as a form of payment alongside the US dollar.
“I’m certain that the youthful, unconventional President, Nayib Bukele, is right about other nations accepting Bitcoin as legal cash in 2022,” Mr. Green asserts. However, I would still go further than he did. Three more countries are quite likely to follow El Salvador’s innovative, forward-looking example and enter the digital era, in my opinion. “Low-income nations have long suffered because their currencies are weak and incredibly susceptible to market fluctuations, which leads to raging inflation,” he continues.
This is the reason why the majority of developing nations depend on important “first-world” currencies, like the US dollar, to execute transactions. But relying on another nation’s currency also has its own set of issues, many of which are highly expensive. Because developing nations have accumulated so much debt denominated in the dollar over the years, a stronger dollar, for instance, will harm the economic prospects of emerging markets.
The deVere CEO continues, “By making cryptocurrencies legal tender, these nations will have a currency that isn’t affected by the state of the market in their economy or indirectly from the economy of just one other nation
“Since Bitcoin operates on a worldwide scale, developments in the broader, world economy have an impact on it.” He adds that because cryptocurrencies “can negotiate the prejudices” of conventional banks and other financial service providers, they may also “bolster financial inclusion for individuals and enterprises” in underdeveloped nations.
Bitcoin Adoption in 2022
As the countries see gradual growth after acquiring cryptocurrency as their national currencies. So many other countries are walking on the same pathway. According to the CEO of a revolutionary international financial powerhouse, three more nations will recognize bitcoin as legal cash in 2022. Nigel Green of deVere Group, one of the biggest independent financial advising, asset management, and fintech companies in the world, doubles down on a positive forecast made by the president of El Salvador on Sunday.
One of the first cryptocurrencies to be released, Bitcoin was launched in 2009 and helped to change the world of decentralized finance (Defi). As more and more advances propel Bitcoin adoption to newer places, a lot has transpired since 2009. Bitcoin is already recognized as legal money in several wealthy nations. To govern Bitcoin, banking regulations are in place in the US, Canada, Japan, France, Mexico, and the UK.
Why is Some Countries More Likely than Others to Adopt BTC and Cryptocurrunices?
There are some nations in the world that might be the finest locations to implement Bitcoin. However, these nations are not what we could have imagined. They all have unique qualities that might allow them to use virtual currency before others.
This nation, which was once the richest in South America and currently appears to be engaged in a civil war, maybe one of the Bitcoin world’s paradises. However, why is it this way? The world’s highest inflation rate, which could reach 750 percent this year, is in this nation. The government is heavily present everywhere and seeks to regulate everything, including unregulated areas. In recent years, the currency lost value. Venezuelans need to carry enormous amounts of Bolivares, the country’s currency, with them if they wish to go to the grocery for some food (which is scarce). The landscape here makes it possible for Bitcoin to spread. Many people are attempting to utilize Bitcoin because all you need is a smartphone and an internet connection.
Situated between the European Union and Russia, it is a little-known nation in the world at large. There, the use of Bitcoin and other cryptocurrencies is growing. This European nation has had times of high inflation rates and currency volatility, just like Venezuela, Argentina, and Kenya. With no central authority that might generate money arbitrarily, these are some of the reasons they would start considering the adoption of a currency.
This African nation is renowned for being a global innovator in the usage of electronic money. M-Pesa, a smartphone application used to send and receive money across the nation, is used by over half of the whole population. According to the Communications Authority of Kenya (CAK), there are 37.8 million mobile customers or 88 percent of the population. With this cutting-edge technology and method of creating money, transfers across cities can be completed almost instantly.
This nation is renowned for both its wealth and economic instability in South America. It is a member of the G20, and the government has recently been attempting to encourage a payment revolution. Even while the situation was not as severe as it was in Venezuela, the last ten years of high inflation rates had made it increasingly difficult to conduct cash transactions. Inflation reached 40% in 2016, and it is anticipated that it would be 22% in 2017 and roughly 12% in 2018.
There is a long way to go for digital currencies in the whole world, but the adaption of them is done on a very large scale. As we as a human population are walking on the pathways of digitization and this would be filled with a lot many different types of things that we need to adapt for the growth of the whole society, as a whole.