Where is bitcoin being adopted?
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Bitcoiners,
There is a clear dichotomy between how individuals in Western countries use bitcoin compared to those living in developing nations.
Developed nations - treat bitcoin as a store of value
Developing nations - treat bitcoin as a medium of exchange and store of value
Surprisingly, developing nations are seeing the highest amounts of bitcoin adoption from an individual, non-professional investor standpoint.
Here is a summary highlighting the top countries in The 2022 Global Crypto Adoption Index so you can understand where bitcoin adoption is happening the most around the world and why.
Vietnam
Vietnam ranked #1 in the Adoption Index.
For the second year in a row, Vietnam ranked #1 in this index. Vietnam consists of lower-middle-income individuals based on income levels and overall economic development compared to all other countries. Developing nations such as Vietnam typically utilize bitcoin to send remittance payments and store value in times of high currency volatility.
Interestingly, the Vietnamese dong experienced CPI inflation rates under 3% in 2022, so high rates of bitcoin adoption may be due to their booming play-to-earn gaming industry.
Philippines
The Philippines ranked #2 in the Adoption Index.
Nearly 10 million adults in the Philippines are unbanked, meaning they do not have access to traditional banks. Filipinos rely on bitcoin for remittance payments because the local banking systems and financial service providers are so inefficient. Some days, remittance transaction volumes are higher than local bank volumes which clearly demonstrates the need for a cheaper and quicker alternative.
The Philippines is another developing country seeing high amounts of bitcoin adoption because their local banking infrastructure does not fulfill their needs.
Ukraine
Ukraine ranked #3 in the Adoption Index.
Ukraine is yet another lower-middle-income developing nation seeing high bitcoin adoption rates. With over 27+ million individuals owning some form of cryptocurrency, it has the highest percentage of crypto owners per capita compared to any other country. The Ukrainian hryvnia is experiencing CPI inflation rates well above 20%, which suggests individuals are turning to bitcoin as an inflation hedge.
Although Ukraine has been leading adoption in Eastern Europe for years, there has been a spike in cryptocurrency usage since the war started, suggesting that bitcoin has more utility in war times.
The top ten countries in the Adoption Index are Vietnam, the Philippines, Ukraine, India, the United States, Pakistan, Brazil, Thailand, Russia, and China in that order.
You can see the full list and methodology of the index here.
Happy Wednesday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter:Â @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
