Many point out that virtual currencies are defining tomorrow and redefining the way we look at finance. Different governments have shown different attitudes towards cryptocurrencies, and there have been instances where they have been completely banned. This was probably due to the lack of information about these assets, and for most evangelists of economics, it was rather a new idea and they didn’t quite understand it.
As a crypto-based business, the uncertainty in regulatory laws might leave you in the dark. Moreover, you might run into legal complications if your country is very skeptical about cryptocurrencies. Therefore, it is necessary to know which countries are most active in the use of cryptocurrencies. Surprisingly, the United States, Russia, and China do not top this list.
Which countries are most active in adopting cryptocurrencies
In a study conducted by STATISTA, a chart was shown with the most active countries in the use of cryptocurrencies.
First, we have Estonia, along with Turkey, Brazil, Colombia, Argentina, and South Africa.
Subsequently comes Mexico, Chile, China, Indonesia, Spain, and Russia.
In the third block of cryptocurrency consumption, we can find Denmark, Australia, United Kingdom, United States, France, Germany, and Japan.
How common are cryptocurrencies in the world?
Statistics suggest that Turkey is the most active country in the use of cryptocurrencies. In Turkey, there is a decadent financial system, which has resulted in the devaluation of the official currency. This situation has made many of the Turks adopt cryptocurrencies in order to safeguard their income. Again, according to statistics, more than 19% of citizens of this country have used cryptocurrencies at least once in a lifetime.
Another country in the list of the most active countries in the use of cryptocurrencies is Brazil. Inflation rates are quite high, as is general corruption in the system of government.
Therefore, the banking system is of poor quality, and Brazilians have chosen cryptocurrencies over Fiat currencies. According to statistics, more than 17% of Brazilian citizens have used cryptocurrencies at least once in their lifetime.
Two other Latin American countries that are active in the use of cryptocurrencies are Colombia and Argentina. The former does not have too much inflation, although the number of Venezuelans found there since recent years has made cryptocurrency buying more active.
It would be a system of “prevention”, by these citizens who have been escaping the galloping inflation of the brother country. For its part, Argentina has an economy in crisis and regulated exchange for foreign currencies. That’s why Argentines turn to cryptocurrencies.
In the case of Venezuela, the problems associated with the Fiat currency system are quite evident. One could say that it’s scary how much an economy can collapse when the government has unlimited power over the monetary system. Inflation has devalued the currency to an extent that people even started to weigh stacks of it instead of counting it.
A curious case among the most active countries in the use of cryptocurrencies today is that of Spain. It ranks 10th in the buying rankings because it is a country that has been experiencing economic problems for some years. Although many Spaniards have other options to access foreign currencies using services such as PayPal or Bizum, more and more citizens are opting for the purchase of cryptocurrencies.
Cryptocurrencies at the UN
One thing to note is that the United Nations is also active in the issue of cryptocurrencies. In fact, they have several projects to promote the financing of solar energy, as well as to promote fair trade. Decentralized markets, especially the recent DeFi innovation, promote open trade.
In its most recent project, the UN created a cryptocurrency fund specially designed to accept donations and fund technologies associated with the development of low-income children and young people around the world.
Bitcoin will be the most accepted cryptocurrency in this UN fund, followed by the Ether. The UN also has a program that continues to investigate the potential of Blockchain technology for future projects.
Countries or organizations do not need to be in crisis to decide to use cryptocurrencies. In fact, many industries are adapting to digital money and cryptocurrencies, as they see it as tomorrow’s form of product and service exchange.
One prominent argument is that it’s environmentally friendly compared to the traditional alternatives. Currency printing requires paper which is not exactly environmentally friendly. Even Gold, which has been largely regarded as the best choice for the store of value, requires Gold mining, and this again harms the environment.
Bitcoin (and other cryptocurrencies), on the other hand, only require electricity. Although producing electricity does harm the environment, it harms it less than mining. With sustainable energy sources becoming more and more efficient, digital currencies could cut down damage to a great extent.
In a nutshell
The cryptocurrency market has created new opportunities for everyone around the world. While anyone in the crypto space could potentially make huge gains from even smaller investments, the market is especially beneficial for developing and underdeveloped countries.
In places like Africa where a large population is unbanked, or Venezuela, where the currency is devalued to near infinity, cryptocurrencies could boom exponentially. The population in these places are most likely to adopt cryptocurrencies.
My interest in Blockchain technology and crypto started when I was an undergrad. It has since then transformed into something much bigger for me. I believe that Blockchain is undoubtedly the future of technology as we know it, and have been trying to share as much knowledge as I humanly can with people.