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Top cryptocurrencies in different regions of the world

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27 June

Content

Cryptocurrency’s popularity

Cryptocurrencies have been gaining popularity around the world as an alternative investment asset. According to a 2021 survey by Statista, the top countries with the highest percentage of cryptocurrency owners in their population are Nigeria (32%), Vietnam (21%), and the Philippines (20%). Other countries with a relatively high percentage of cryptocurrency adoption include Turkey, Peru, Switzerland, and New Zealand. It’s worth noting that these numbers represent the percentage of the population that owns cryptocurrency, rather than the percentage of people who actively use it for transactions. The actual number of people who use cryptocurrency regularly for transactions is likely to be lower.

 

Factors that contribute to the high adoption of cryptocurrency 

  • Economic instability: Countries with volatile or unstable economies may see cryptocurrency as a more stable store of value than their local currency. This may be the case in countries like Nigeria, where the local currency, the Naira, has experienced significant inflation in recent years.
  • Lack of access to traditional banking: In many parts of the world, people may not have access to traditional banking services due to a lack of infrastructure or government policies. Cryptocurrency provides an alternative means of storing and transferring value that does not require a bank account.
  • Remittances: Many countries with high cryptocurrency adoption rates, such as the Philippines and Vietnam, rely heavily on remittances from overseas workers. Cryptocurrency can provide a faster and cheaper means of transferring money across borders compared to traditional remittance services.
  • Tech-savvy population: Countries with high rates of technology adoption may be more likely to embrace cryptocurrency as a digital asset. This may be the case in countries like Switzerland and New Zealand, which have highly developed technology sectors.
  • Government policies: In some cases, government policies may encourage or discourage cryptocurrency adoption. For example, countries like Turkey and Peru have recently passed laws that provide greater regulatory clarity for cryptocurrency businesses, which may have contributed to higher adoption rates in those countries.

 

North America

According to a report by Chainalysis, North America is the third-largest cryptocurrency market in the world after Asia and Europe, accounting for over 17% of all cryptocurrency transactions. The report estimates that the total trading volume in North America was over $210 billion in 2020. 

Bitcoin (BTC) is the most popular cryptocurrency in North America, followed by Ethereum (ETH). Litecoin (LTC), Bitcoin Cash (BCH), and Dogecoin (DOGE) are also popular cryptocurrencies in this region. The United States and Canada have two of the world’s largest cryptocurrency markets.

 

Europe

The report estimates that the total trading volume in Europe was over $350 billion in 2020. Bitcoin (BTC) is the most popular cryptocurrency in Europe, followed by Ethereum (ETH) and Ripple (XRP). Litecoin (LTC), Bitcoin Cash (BCH), and Cardano (ADA) are also gaining popularity in Europe. Germany, the Netherlands, and Switzerland have some of Europe’s most advanced cryptocurrency markets.

 

 

Asia

Asia is a massive market for cryptocurrencies, with Japan, South Korea, and China leading the way.  According to a report by Chainalysis, Asia is the largest and most active cryptocurrency market in the world, accounting for over 40% of all cryptocurrency transactions. The report estimates that the total trading volume in Asia was over $1 trillion in 2020.

Bitcoin (BTC) is the most popular cryptocurrency in Japan and South Korea, followed by Ethereum (ETH) and Binance Coin (BNB).  However, cryptocurrencies are illegal in China, and the government has severely restricted cryptocurrency trading and mining. Neo (NEO) has long been a favorite of Chinese investors and is often fondly referred to as the “Chinese Ethereum.

 

South America

South America is another expanding cryptocurrency market, with countries such as Brazil and Argentina leading the way. According to a report by Chainalysis, Brazil has the highest cryptocurrency trading volume in Latin America, with an estimated $1.6 billion in total trading volume in June 2021.The most popular cryptocurrency in South America is Bitcoin (BTC), followed by Ethereum (ETH) and Binance Coin (BNB). Litecoin (LTC), Bitcoin Cash (BCH), and Cardano (ADA) are also popular cryptocurrencies in South America.

 

Functions of cryptocurrency in this regions:

  • Investment: Many people in North America view cryptocurrency as an investment opportunity, buying and holding coins with the hope of realizing a profit as the value rises.
  • Online purchases: Some retailers and online merchants in North America accept cryptocurrency as a form of payment. This includes both large companies like Microsoft and Overstock.com, as well as smaller businesses and independent sellers.
  • Remittances: Cryptocurrency can be used to transfer money across borders quickly and cheaply, making it a popular option for remittances. This is especially important for people who may not have access to traditional banking services.

 

Africa

Africa is a growing cryptocurrency market, with Nigeria and South Africa leading the way.  For example,  Kenya has seen a significant increase in cryptocurrency usage in recent years, with some estimates suggesting that up to 5% of the population may own digital currencies. The country has also been exploring the use of blockchain technology in areas like land registry and supply chain management. 

The most popular cryptocurrency in Africa is Bitcoin (BTC), followed by Ethereum (ETH) and Binance Coin (BNB).  Litecoin (LTC), Bitcoin Cash (BCH), and Chainlink (LINK) are other popular cryptocurrencies in Africa.

The function of cryptocurrency in this region is different from the above countries, because the use of crypto is more of a necessity. This is due to the inflation and currency instability, lack of traditional banking infrastructure. 

 

Functions of cryptocurrency in this region:

  1. Remittances: Cryptocurrency can be used to transfer money across borders quickly and cheaply, making it a popular option for remittances. This is especially important for people who may not have access to traditional banking services.
  2. Trading: Africa is home to a number of cryptocurrency exchanges, where people can buy, sell, and trade digital currencies. Some popular exchanges include Luno, Paxful, and Binance.
  3. Financial inclusion: Cryptocurrency has the potential to increase financial inclusion in Africa by providing an alternative means of storing and transferring value for people who may not have access to traditional banking services.
  4. Payment for goods and services: Some businesses in Africa, particularly in countries like Nigeria and South Africa, are beginning to accept cryptocurrency as a form of payment for goods and services.

 

Conclusion

As we have seen, cryptocurrencies are gaining traction in various regions of the world, and their popularity is continuing to grow. While there are some countries where cryptocurrencies are banned or heavily regulated, there are also many regions where they are increasingly accepted and adopted. As the world becomes more digitally connected, cryptocurrencies are likely to become an even more important part of the global financial landscape. ECOS is a platform that offers a secure and user-friendly way to buy and store various cryptocurrencies, making it easier for individuals to participate in this exciting and rapidly evolving market. With ECOS, users can enjoy the benefits of decentralized finance while also ensuring their investments are safe and secure.

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Investing reporter

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