Bitcoin is currently experiencing the fourth largest dip in its history. The cryptocurrency has lost about 71% of its value. This is not exclusive to Bitcoin but to other cryptocurrencies as well. In financial terms, the digital currency market is in a bear market.
Bear markets are common in most financial markets. Most experts believe that the current one has about 250 days more to go looking at the cycles in the past. This market cycle breeds fear, and the world has responded with mixed reactions.
The following article will explore how parts of the world have adopted crypto with the current bear market.
Adoption Trends Worldwide
Europe is lagging behind the rest of the globe in adopting cryptocurrencies.
While the percentage of Europeans using cryptocurrency is about 17%, it is lower than the global average of 23%. This percentage is comparable to other industrialized countries.
According to research by Gemini, cryptocurrency adoption by people in the United States was 18% and 20% in Australia.
Many European countries have not yet warmed up to digital currencies. Here’s a breakdown of EU countries and their crypto adoption level:
- 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 was influential in the adoption on the continent, with the United Kingdom leading in the race.
– North America
North America may be on the road to becoming the second biggest crypto market receiving about $750 billion in digital currencies between July 2020 and June 2021 which stands for more than a half of the 1,3B crypto market size in 2021.
However, with this large market, the continent is still behind in adopting digital currencies and the types of investments involved.
It is understandable since people in the United States and Canada have several other investment options compared to the rest of the world. The current bear market in the crypto world is making them hold on more to options they already trust.
Experts predict that when the crypto market picks up again, this market has the highest potential of acquiring the most crypto assets in the world not just because 32,6% of wealth is concentrated there but also because of the growing adoption of crypto and blockchain projects.
– South America
South America has seen an exponential increase in the adoption of cryptocurrencies over the past few years. This can be attributed to many things.
The first of them is the high inflation levels in the region. Many people in this market live in countries with volatile and weak currencies. This makes them ready to invest their wealth in other assets.
It used to be the dollar or gold, but digital currencies have provided them with a new option.
There is a lot of political instability here, and governments usually seize the wealth of individuals. Crypto offers them a way to store their wealth away from censorship from authorities.
Crypto transactions tend to replace traditional banking services in these regions. This is because the crypto industry allows faster payments with dramatically low fees while funds are protected from volatility.
In the face of the downward spiral in the crypto market, people here still adopt it because these digital currencies offer them a better way to enter the global market.
Asia leads the rest of the world in the adoption of cryptocurrencies. Countries such as India, Thailand, and Vietnam are leading this trend. The market has a large base and is widely conservative in finance practices.
However, the volatile conditions and political instability in other parts of the world are rampant here too.
Crypto in China is quite popular because it offers citizens a chance to escape strict control of the Yuan. Authorities also find it tough to confiscate crypto assets as a way to cripple any opposition they face.
In places such as Japan and Korea, citizens are more accustomed to trying new things and being futuristic. Several apps have emerged that include cryptocurrency. This desire to experiment has also driven up the crypto adoption trends, especially after the Covid-19 pandemic.
Asia is already ahead of the digital currency pack with almost 20% of the population interested in it. The market looks bright for crypto in this region.
Countries such as Nigeria, Kenya, Togo, and Ghana appear very high in the global cryptocurrency adoption trends. Most of the reasons in this region are similar to those in South America. Crypto in Africa is a way to participate in a global economy. For locals it become an option to protect their savings from volatility that their local currencies and financial systems often suffer from.
The financial market in Africa is very volatile, with high inflation and political instability. People here consider the current losses in the bear market better than what they would have suffered with fiat.
Most Africans were already used to digital currencies through mobile phone services. This is why they find it easy to make the switch to crypto.
Bear markets are natural with crypto markets and don’t last for long. The current dip in the cryptocurrency values will transform soon enough. There are signs that things are already changing.