US investors dominated Bitcoin earnings in 2020

Source: Adobe / Andrey Popov

U.S. crypto investors made more than $ 4 billion in Bitcoin Realized (BTC) profits in 2020, more than triple the profits of Chinese investors at $ 1.1 billion, followed by crypto traders from Japan, the UK and the UK Russia blockchain analysis company Chainalysis. However, the report shows that traders in a number of countries are outperforming their states in terms of profits from the cryptocurrency.

While China historically has by far the highest raw transaction volume for cryptocurrencies, US-facing exchanges reported immense inflows over the past year, which appear to have been realized towards the end of 2020, which the report says is likely responsible for the country’s largest gains from Bitcoin trading is.

The “steepness” of the US earnings curve in late 2020 and early 2021 “suggests that American investors were selling at higher prices while those in other countries held more,” according to analysts.

Other countries whose investors have placed them in the top ten are Germany, France, Spain, South Korea and Ukraine.

One of the factors that attracts attention is the number of countries that appear to be “above their weights” when compared to their rankings in traditional economic metrics, Chainalysis said.

“While Vietnam has experienced exceptional economic growth over the past 20 years and its poverty rate has been reduced from over 70% to under 6% since 2002, the country ranks 53rd [terms of its gross domestic product] (GDP) [USD] 262 billion euros and is classified as a low-middle-income country by the World Bank. However, Vietnam has a high level of basic cryptocurrency adoption and ranks 10th in our Global Crypto Adoption Index, ”the report said.

Other examples of such countries are the Czech Republic, which ranks 54th in terms of GDP with $ 251 billion but ranks 18th in realized bitcoin recoveries in 2020 with $ 281 million; Turkey, which came in 25th and 16th respectively; and Spain, which finished in 19th and 9th place.

In contrast, Bitcoin investors in some countries that have enforced strict regulations on cryptocurrencies have fallen below their weight in the past year, as the example of India shows, a country with a population of around 1.4 billion ranked 18th in relation to last year on its BTC investment gains of $ 241 million.

This was less than that of investors in the aforementioned Czech Republic, a country of around 11 million, but it could also be a consequence of India’s unfriendly stance towards crypto, and this could also be the path Turkey is currently on.

“Overall, our analysis of 2020 Bitcoin earnings by country should be encouraging to the cryptocurrency world. The data suggests that Bitcoin has given emerging market investors access to a high performing asset that they might not otherwise have had access to, ”the report said.

It concluded that “on the other side of the coin also suggests that countries trying to restrict the use of cryptocurrencies through strict regulations are preventing their citizens from seizing the opportunity”.


Learn more:
– Crypto knowledge on the rise, encourages investment – survey
– 18% of the Americans surveyed bought crypto, most only know Bitcoin – Survey

– Developing economies and better educated people are leading the crypto “space race”
– 40% of respondents plan to use crypto within a year – Mastercard

Comments are closed.