Who are the biggest winners in the first half of this bull market?

While there is a correlation between the level of economic development and the popularity of cryptocurrencies, it is by no means a simple absolute positive correlation.

Written by Siyu Nguyen

On June 8, blockchain analytics firm Chainalysis released the performance of bitcoin investment returns for market participants in various regions of the world during the first half of the most recent historical-level bull market (2020) by examining the historical records of on-chain money movements, especially those that generate interactions with tagged exchange addresses.

This statistic provides a very visual representation of the countries or regions around the world where bitcoin popularity or hype participation is higher, proving that while there is a correlation between the level of economic development and the popularity of cryptocurrencies, it is by no means a simple absolute positive correlation.

The Chainalysis team said that in conducting the data measurement process, it first counted the on-chain money flows to each cryptocurrency exchange and estimated the total dollar gain of bitcoin by measuring the difference in price when assets were withdrawn from the platform. This was followed by an allocation of gains (or losses) by country or region based on each country’s or region’s share of network traffic on each exchange’s website. It should be noted, however, that this data currently fails to fully cover gains on assets that have not yet been transferred from the exchanges.

Under this rule, the top 25 countries or regions statistically benefiting the most from Bitcoin in 2020 are ranked in terms of the size of their gains as follows

Who are the biggest winners in the first half of this bull market?

As the chart above shows, U.S. investors continue to lead the way in terms of the size of returns realized on bitcoin, with total returns for U.S. investors reaching more than three times the total returns of Chinese investors for all of 2020, with total returns realized during the year exceeding $4.1 billion.

And bitcoin investment returns are not directly tied to the level of economic development. Vietnam, for example, has seen significant economic growth over the past 20 years, with poverty rates dropping from over 70% to under 6% since 2002, but the country currently ranks 53rd in the world in terms of GDP and is classified by the World Bank as a lower middle-income country. However, Vietnam has a high rate of cryptocurrency adoption, ranking 10th in the Global Cryptocurrency Adoption Index. in 2020, Vietnam ranked 13th in Bitcoin investment returns at $351 million, outperforming countries that traditionally rank high on economic indicators such as Australia, Saudi Arabia and Belgium.

Similar countries also include.

The Czech Republic ranked 54th in GDP at $251 billion. However, it ranked 18th with $281 million in real bitcoin investment earnings.

Turkey ranks 25th in GDP at $761 billion. But ranked 16th with $300 million in actual bitcoin investment income.

Spain ranks 19th in GDP at $1.4 trillion, but 9th in real bitcoin investment returns at $554 million.

This of course means that there are some countries with relatively higher levels of economic development that are being left “behind,” such as India, which has the fifth largest economy in the world at $2.9 trillion. However, it ranks 18th in terms of bitcoin investment returns in 2020 with only $241 million. The Indian government’s heavy-handed regulation of crypto assets is clearly a major factor in this phenomenon.

Who are the biggest winners in the first half of this bull market?

In addition to this, Chainalysis has also published the monthly dynamics of this data during the year 2020. As the chart above shows, the sharp rise in bitcoin prices at the end of the year led to significant growth in investor returns in almost every country or region. In addition to the positive returns for early entrants driven by the rise in the price of the cryptocurrency, the warming market is also driving more new entrants, which in turn is fueling further growth in the data.

It is worth noting that Chainalysis’ analysis suggests that the steep increase in U.S. investor returns at the end of 2020 was largely due to the fact that U.S. investors were more aggressive in “cashing out” at higher levels, while investors in other regions were more willing to hold for the long term.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/who-are-the-biggest-winners-in-the-first-half-of-this-bull-market/
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