The global adoption of cryptocurrencies has taken off in the last year with an increase of 881%, according to data from Chainalysis, a data study firm. its Global Crypto Adoption Index 2021, the second launched by the company, classifies 154 countries according to metrics such as the volume of exchange between peers.
Countries are scored based on three parameters: total cryptocurrency activity, non-professional users’ trading activity, and peer-to-peer trade volume, all weighted by per capita purchasing power parity.
The firm notes that while professional and institutional markets are crucial, they have actually wanted to highlight the countries with the highest adoption of cryptocurrencies by ordinary people and focus on use cases related to transactions and individual savings, rather than trade and speculation.
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The goal of working with these metrics is to rank each country by total cryptocurrency activity, but weight the rankings to favor countries where that amount is most significant based on the wealth of the average person and the value of money in general within from the country.
According to Chainalysis, these are the countries that appear in the top 20:
Data from the data analytics firm reveals that at the end of the second quarter of 2020 and after a period of low growth, total global adoption stood at 2.5. But at the end of the second quarter of 2021, that total score was 24, suggesting that global adoption had grown more than 2300% since the third quarter of 2019 and more than 881% in the last year.
The research proposes that the reasons for this greater adoption differ around the world, since in emerging markets many citizens turn to cryptocurrencies to preserve their savings against the devaluation of their currency, send and receive remittances and carry out commercial transactions, while the Adoption in North America, Western Europe, and East Asia over the past year has been driven largely by institutional investment.
Specialists point out that, while in the most advanced economies cryptocurrencies are still viewed with suspicion, in developing nations it has fertile ground due to factors such as financial instability or barriers to accessing traditional financial products, such as a simple bank account.
Along those lines, an analysis by the Australian crypto education platform Crypto Head looked at a variety of factors affecting cryptocurrencies in different countries, including the public interest, the government’s legal stance on digital currency ownership, as well as the accessibility, particularly the prevalence of crypto ATMs.
Crypto Head revealed that the United States is the country with the most ATMs dispatching cryptocurrencies. Its more than 17,400 machines in service are physical devices that allow people to buy Bitcoin, Dogecoin and other cryptocurrencies with cash or with their debit or credit cards. Some models are bi-directional and also allow the sale of digital currencies in exchange for cash. Canada ranks second in the world with a little more than 1,400 ATMs of this type and the United Kingdom closes the list with just 200.
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