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Which countries are practically adopting Cryptocurrency?
Blockchain analytics firm Chainalysis has devised its own "CryptoCurrency Adoption Index" in its latest report, which looks at 154 countries around the world where the use of Cryptocurrencies is most advanced.
Ukraine in first place, Russia in second place, and Venezuela in third place.
4th China, 5th Kenya, 6th USA, 7th South Africa, 8th Nigeria, 9th Colombia, 10th Vietnam.
The new indicators introduced by Chainalysis will focus on the percentage of residents spending on cryptocurrencies in their financial activities.
On the other hand, Chainalysis said, "Long-term speculation on cryptocurrencies is likely to be based on the idea that it can ultimately become the mainstream means of value transfer and payments." Focus on daily use by users.
It is said that the purpose of the index developed this time is to show in which country such actual use is carried out.
The indicators were measured from four directions: the amount of on-chain cryptocurrency received, the amount of on-chain retail sales sent, the amount of on-chain cryptocurrency deposits, and the amount of transactions on P2P exchanges.
These figures are adjusted by taking into account purchasing power parity per capita and the number of Internet users in that country.
For example, if two countries receive the same amount of cryptocurrency, the country with the lower purchasing power parity per capita will be ranked higher. Similarly, if the same amount of deposits are held in two countries, the country with the fewest Internet users will be ranked higher.
According to the survey results, the use of practical Cryptocurrencies, especially as a medium for storing and exchanging value, is flourishing in developing countries.
In Venezuela, the adoption of cryptocurrencies is increasing when the value of their own currencies is declining due to inflation. This pattern is also found in other Latin American countries, Africa and East Asia.
In Venezuela, hyperinflation of 1.7 million% in 2018 and over 7,000% last year has caused a serious shortage of supplies and devaluation of legal tender, and it seems that Cryptocurrencies are also used to maintain the value of savings. In addition, it seems that the number of stores accepting Cryptocurrency as a payment method is increasing.
In another report released by Chainalysis , cryptocurrency transfers from Latin America to Asia were prominent, with exporters based in Asia and buying goods from them. Cryptocurrencies are widely used in practical commercial transactions to avoid complicated banking procedures and high remittance fees.
In Ukraine, which ranked first this time, the president is recommending the digitization of the nation, and it is also positive for cryptocurrency mining. According to the Ministry of Digital Transformation of Ukraine, the blockchain developer community is large and has a large tech-savvy population, there are complex regulations on import and export transactions, and there is no domestic stock market. It is said that it is a factor that drives the currency. Some say that tethers (USDT) are widely used to pay for imported goods.