Bitcoin is currently experiencing its fourth-largest dip in history. The cryptocurrency has lost 71% of its value . This applies not only to Bitcoin, but also to other cryptocurrencies. The digital currency market is currently in a bearish market.
Bear markets are common in many financial markets. Experts believe the current cycle has 250 more to go if we look at past cycles. The market cycle creates fear and the world has had mixed reactions.
This article will discuss how crypto has been adopted in different parts of the globe with the current bear markets.
Adoption Trends Worldwide
Europe is behind the rest of world in adopting cryptocurrency.
Although the European average is 23%, the percentage using cryptocurrency is only 17%. This percentage is comparable with other industrialized nations.
Gemini research found that cryptocurrency adoption in America was only 18%, while it was 20% in Australia.
Many European countries are still not ready to accept digital currencies. Below is a breakdown of EU nations and their crypto adoption levels:
Germany – 5,8%
France – 5,4%
Poland – 2,83%
Netherlands – 2,75%
Spain – 2,73%
Italy – 2,26%
Czech Republic – 2,08%
Sweden – 1,88%
Greece – 1,71%
Austria – 1,62%
The pandemic had a significant impact on adoption of the continent. The United Kingdom was the leader in the race.
North America could be the next largest crypto market, receiving approximately $750 billion in digital currencies from July 2020 to June 2021. This is more than half of the 1,3B crypto markets size in 2021.
Despite this huge market, Africa is still far behind when it comes to digital currencies and types of investments.
This is understandable as people in the United States of America and Canada have many other investment options than the rest of the globe. They are more likely to trust the options they have in place due to the current bear market in crypto.
Experts predict that the crypto market will pick up in the future. This is not only because 32.6% of wealth is concentrated there, but also because of growing adoption of blockchain and crypto projects.
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Over the last few years, South America has witnessed a rapid increase in cryptocurrency adoption. Many factors can explain this increase in cryptocurrency adoption.
High inflation in the region is the first. Many of these people live in countries with weak and volatile currencies. They are therefore more likely to invest their wealth elsewhere.
It was once the dollar or gold. But digital currencies offer a new alternative.
This country is unstable politically, and governments often seize wealth. They can store their wealth in crypto, which is free from government censorship.
These transactions are replacing traditional banking services in these areas with crypto transactions. The crypto industry allows for faster payments and lower fees, while protecting funds from volatility.
Despite the downturn in crypto markets, many people still use it as these digital currencies provide a better route to the global market.
Asia is the leader in cryptocurrency adoption. This trend is being led by countries like India, Thailand, Vietnam, and Vietnam. This market is large and conservative in its finance practices.
But, there are also the unstable conditions and political instability that plague other parts of the globe.
Because it allows citizens to escape the Yuan’s strict control, crypto in China is very popular. It is also difficult for authorities to seize crypto assets to stop any opposition.
People in Japan and Korea are more open to new ideas and are more futuristic than others. Numerous apps now include cryptocurrency. The desire to experiment has driven the rise in crypto adoption, particularly after the Covid-19 pandemic.
Asia leads the digital currency pack, with nearly 20% of the population being interested in it. This market is ripe for crypto.
In the global cryptocurrency adoption trends, countries such as Ghana, Kenya, Togo and Togo are very high. Many of these reasons are very similar to those in South America. Participating in a global economic system is possible with crypto in Africa. It is a way for locals to safeguard their savings against volatility in their local currencies.
Africa’s financial market is highly volatile due to high inflation and political instability. The current losses in Africa’s bear market are more significant than the fiat losses.
Many Africans are already familiar with digital currencies via mobile phone services. It is easy for them to switch to crypto.
Bear markets are a natural part of crypto markets, but they don’t last long. Soon enough, the current drop in cryptocurrency values will change. There are already signs that things may be changing.
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