- China is back among the countries with the highest level of bitcoin and cryptocurrency adoption in the world.
- The findings come from a new Chainalysis report that details bitcoin and cryptocurrency adoption levels by country.
- Vietnam leads the world in overall adoption, while India has the highest number of centralized purchases.
Blockchain analytics firm Chainalysis has released its 2022 Global Cryptocurrency Adoption Index detailing global bitcoin and cryptocurrency usage with a unique ranking formula.
The report’s most staggering insights show that despite last year’s ban, China has returned to rank among the top 10 countries in the world for adoption. Additionally, Vietnam is still ranked first and the United States has moved up to fifth from previously ranked eighth in 2021.
However, when looking at this report, it becomes much more interesting after realizing how Chainalysis ranks adoption. Five separate indices cumulatively provide each country’s overall index score, and the indices allow for a weighted calculation based on the percentage of income spent to acquire bitcoin and cryptocurrencies.
Thus, a country with the highest accumulated volume will not rank first for adoption because it most likely accounts for a smaller portion of the population’s overall income.
Additionally, a country may have massive amounts of accumulation but rarely participate in peer-to-peer (P2P) value transfer, which could lower a country’s ranking. This happens to be the case for India which ranks number one in all measures except for P2P transfers which led the country to rank fourth in the world.
Therefore, considering a country’s use of bitcoin and cryptocurrencies not just as a store of value, but as a medium of exchange, paints a more complete picture of adoption. This also takes into account that emerging markets make up the bulk of the list as they participate in more P2P transactions.
The report concluded by detailing how adoption is still well above 2020 bull market levels and even though markets have seen bearish momentum, “bear markets cannot wipe out bull market adoption.”