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Chainalysis calculated the total US dollar gains achieved by Bitcoin investors in 2020. An examination of online traffic on multiple cryptocurrency exchanges was used to create the nation comparison.
According to a recent research from cryptocurrency analytics firm Chainalysis, emerging economies appear to be punching above their weight when it comes to Bitcoin (BTC) investment, providing additional evidence of expanding global popularity.
A geographic analysis of realized Bitcoin gains revealed that investors in the United States generated $4.1 billion in returns last year, which is more than three times higher than second-ranked China, Chainalysis said. Although economic stalwarts such as Japan, the United Kingdom and Germany were near the top of the list, several countries are investing a lot more in Bitcoin relative to traditional economic metrics like gross domestic product.
In other words, GDP doesn’t seem to be a strong indicator of who is generating higher return on investment in Bitcoin.
A standout case is Vietnam, a country that ranks 53rd in GDP but 13th when it comes to realized Bitcoin gains. The East Asian country’s sharp pivot from a centrally planned economy to one embracing market reforms has allowed it to slash its poverty rate from over 70% to below 6% since 2002, according to the World Bank.
Chainalysis also drew attention to the Czech Republic, Turkey and Spain, which rank 54th, 25th and 19th in GDP, respectively, but all fall within the top 20 in terms of realized Bitcoin gains.
The Bitcoin bull market of 2020–2021 began in October of last year, with the price rising from roughly $11,000 to more than $29,000 by December 31. Bitcoin’s price will finally peak at $65,000 in April before plummeting precipitously.
By studying location-based online traffic on several cryptocurrency exchanges, Chainalysis was able to infer country-specific statistics. Cointelegraph inquired about the analytics firm’s ability to account for the likely presence of VPN usage by exchange users. While Chainalysis acknowledged the constraints, the corporation maintained its thorough transaction data analysis, stating:
“We acknowledge that there are clear limitations to using web traffic data, including the usage of VPNs and other products that can mask the geographic origin of web activity. However, the data that forms the trends we explore comprises millions of transactions, so this activity would need to be extremely widespread for it to meaningfully affect our data.”
The analysis confirms what many crypto fans have been saying for a long time: Bitcoin provides unrestricted access to a high-performing asset for investors in emerging economies. This is especially relevant in areas where inflation is strong and governments are tightening regulations on bank deposits and withdrawals.