Crypto Marketcap Insights
In an area once dominated by blockchain experts, cryptocurrency
is fast becoming a dining table theme in both developed and emerging economies. More and more people, both technical and non-technical, are embracing the idea of ​​a fully digital and decentralized currency. This new asset class is known to have "intrinsic value" due to its core technology.
Today, cryptocurrencies are fast becoming a popular investment option and compete with time-tested assets such as real estate and stocks. Many leading investors in the market are interested in this new asset class, which shows how much the cryptocurrency will have on global financial markets in the coming days.
This thriving decentralized parallel economy has shocked traditional (read centralized) institutions, such as governments and banks, which, after their initial rejection, had to open a crypto because of the highest global interest and disruptive quality. Meanwhile, the daily use of cryptocurrencies is growing every day due to the strength of decentralization.
Cryptocurrencies are real asset classes. With companies like Starbucks, AT&T and PayPal accepting cryptocurrencies, cryptocurrencies appear to be coming. Although this is a new asset class, the first users have been found in emerging economies
. Due to their decentralized nature and easy movement across international borders, they have become popular in a short time.
South America has recently seen an increase in interest in cryptocurrencies. Countries, especially those with unstable domestic currencies, are experiencing widespread interest from local users. In countries like Venezuela, people are beginning to see cryptocurrency as a way to protect against their rapid currency. El Salvador's recent move to legally adopt bitcoin for general transactions is also considered a milestone that gives bitcoin the same status as the US dollar in the country.
South Asia is also tough. According to the Chainalysis report, India, Pakistan and Vietnam have the highest cryptocurrency adoptions in the world. Their neighbors in Southeast Asia, the Philippines and Thailand, are not far away. Despite an initial ban on cryptocurrencies, India has seen a significant increase in the use of cryptobourses and wallets. In India, the first traction is concentrated in level I cities. However, cities seem to be taking over level II and level III cities.
Interest in cryptocurrencies is being generated across Central and South America and Africa as well. Countries like Nigeria, Kenya and Colombia are following suit.
Whether it’s trading, mining or spending, emerging markets are dominating the crypto space
. Asia (India, Vietnam, China, Philippines and Thailand), Africa (Nigeria, Kenya, Senegal and South Africa) and South America (Brazil, Venezuela, Colombia and Argentina) are already leading the way with the highest adoption rate, mining and trading volume. Apart from its decentralised nature, Crypto’s adaptability for a mobile-only environment makes it a favourable choice for small, developing economies where a big portion of the population is still unbanked. This trend is expected to continue in the coming years as we see governments warm the reception of cryptocurrencies. Looking at India in particular, we can expect a greater pull from Tier II and Tier III cities with more interest generated among small day-to-day investors and freelancers who rely on work externally from foreign clients.
While the future looks promising for emerging markets, the steps that regulators need to take may also be crucial in paving the way for wider adoption of cryptocurrencies.
