- The global list of nations with the highest crypto consumption is topped by Vietnam.
- Crypto usage has risen almost nine times in the last year, especially across Latin America.
The two Latin American countries, Argentina and Venezuela, rank among the top 10 countries for users of digital currencies on the planet. In the list headed by Vietnam, with India and Pakistan in second and third respectively, Venezuela appears in the seventh place while Argentina rounds out the list in the tenth place.
Over the last year, the use of cryptocurrencies worldwide has grown exponentially. According to a report by platform security consultancy Chainalysis, the use of crypto in both countries has gained momentum.
Venezuela, which ranked third in 2020, was overtaken in the last year by Ukraine, Kenya and Nigeria. On the other hand, Argentina advanced from 28th to 10th, followed by Colombia in 11th, which fell from 9th place.
The cryptocurrency analysis firm’s report evaluated the performance of 154 countries around the world. The three main metrics that the study took into account were: the value of cryptocurrencies received on-chain; retail values transferred on-chain; and the volume of peer-to-peer trades.
The weighting of each of the metrics was based on purchasing power parity, the analysts explained. The report aimed to provide an objective measure to identify the countries with the highest levels of cryptocurrency adoption.
The methodology used in the study weights the score of 1 as the highest for each metric analyzed, contrary to how it was previously applied, based only on the volume of transactions.
Crypto Usage Has Risen Nearly Nine Times Over the Last Year
One of the most important pieces of information to be gleaned from the report is that, at the end of the second quarter of this year, the use of cryptocurrencies has grown an impressive 881% over the last year, and 2,300% compared to the third quarter of last year alone.
Venezuela, which leads the list of countries in South America that interact the most with digital currencies, surpassed the United States. Its government coined the official Petro token in February 2018 with the aim of capturing liquidity, but it has not had much luck.
The destruction of its currency, the bolivar, due to chronic hyperinflation, prompted industry traders to protect their assets with crypto. The country has seen mining activities flourish for Bitcoin and other digital currencies for almost the entire decade.
Now that China has instigated fierce persecution against miners, Venezuela is well positioned to take their place. In fact, it is already part of the group of countries that boasts the best conditions for mining, joined by Canada, Kuwait, Iceland and Georgia, according to the list prepared by cybersecurity firm Norse Corp.
Both Venezuela and Argentina make intensive use of various cryptos, including bitcoin, ethereum, and others. Countries with weak currencies have chosen to strengthen the use of “stable” cryptocurrencies in order to combat the progressive and permanent deterioration of their respective monetary signs.
Argentina, particularly, has a large market for Tether and DAI that are equal to one dollar. It has become a major way for Argentines to protect themselves from the increasingly adverse exchange rate.
On The Flipside
- Venezuela adopted the mining of Bitcoin and other cryptos illegally, which forced the current circumstances.
- Mining was subsequently legalized, as complaints from former government officials circulated about alleged clandestine farms controlled by the authorities themselves.
Why You Should Care?
Argentina and Venezuela are glowing examples of how digital currencies can become alternative assets when fiat money deteriorates in value.