If you are reading this article, you are most likely from one of the countries that have adopted cryptocurrencies as a resource of value or as a means of payment; and it is because nowadays the term cryptocurrency is much more popular than if we compare it with the popularity they had in 2010.
Let us remember that part of this popularity was thanks to the success of Bitcoin globally, and today 4 out of every 10 people know what a cryptocurrency is, many of these people belong to certain countries where cryptographic concepts have spread more than in other regions. All this is possible because, being a fully digital asset, it is easier to measure the different nationalities of the users who handle any cryptocurrency.
This analysis allows specialists to measure the level of adoption in different countries, as well as the possible causes of said acceptance. As we have mentioned in previous topics, cryptocurrencies are influenced by various external factors, which can affect their price significantly. negative or positive, as well as the level of acceptance of a currency in a certain region.
For example, it is well known that cryptocurrencies are widely used in countries that are going through an economic crisis or where their economy is not doing especially well, it is also very common to see cryptocurrencies entering with great force in countries with political crises or military problems. For these and other reasons we can see countries like Venezuela, Nigeria, Argentina, Ukraine, among others, have been influenced by cryptocurrencies as a valuable resource.
We can assume that the adoption of cryptocurrencies is a slow process that can be caused by different factors, and sometimes by factors as crucial as the economy or politics of a country, a clear example is what was demonstrated on Venezuela, which is a country which fell into a serious economic and political crisis in 2012, which caused many Venezuelans to take refuge in cryptocurrencies such as Bitcoin, Dash and Bitcoin Cash, which helped them maintain the value of their savings, since that at this time cryptocurrencies were on a price streak therefore cryptocurrencies were and continue to be widely accepted in this country.
Obviously, not everything is due to economic or social problems, there is a particular case where a country literally adopted cryptocurrencies officially, since the most widely used cryptocurrency in the world (Bitcoin) was decreed as a currency for official use in its territory, and it is that in December 2021 El Salvador decided to use Bitcoin as a means of payment or currency for official use in the country, leaving a precedent that the process of cryptocurrencies can also be developed artificially.
An important factor of adoption beyond the crises or policies by a government, is the intrinsic value of cryptocurrencies; At the beginning of the crypto era, many of the first users approached it not because of the possibility of getting rich (since they did not know that the price of these would increase so much), but rather because of the value that this means of payment represents, the power Carrying out transactions privately, quickly and safely, was something that did not exist until then. The true primary factor influencing the adoption of a cryptocurrency is its own capacity and that it can offer its users something that the conventional financial system cannot.
According to a study carried out by the crypto ecosystem data analysis firm Chainalysis, the region with the highest adoption of cryptocurrencies is currently Asia, since in previous years Latin American countries led the table as the region with the highest adoption.
This study showed that the country with the highest adoption in the world by 2022 is Vietnam taking first place, followed by The Philippines, Ukraine, India and in fifth position the United States, something interesting that this study shows is that the countries with the highest adoption belong to developing regions or low-income countries, it also reveals that the second region with the highest adoption is Latin America, where we find countries such as Brazil, Colombia, Argentina, Ecuador and Venezuela.
Another relevant fact that this study leaves us with is that it is proven that in moments of crisis, countries and regions seek a refuge in cryptocurrencies, as is the case of Ukraine, which reached 3rd place in the ranking, due to the great movement of funds from people all over the world to Ukraine because of the current conflict against Russia.
To conclude, we must be aware that there are many factors that can influence the organic adoption of a country with different cryptocurrencies. The economic and political crises of a country can positively or negatively affect the adoption of a cryptocurrency and that there are also artificial ways to make an entire population automatically accept some cryptocurrency such as the case in El Salvador, however the most important factor influencing the adoption of a cryptocurrency is its own capacity and the innovative characteristics that can offer.
Probably there is still a long way to go for this to happen, but it is estimated that at the moment of almost total adoption there will be cryptocurrencies whose price will be affected because in a certain way it should be a little more stable, such is the case of Bitcoin, where many experts defend the idea that when the last Bitcoin has been mined and has full adoption, its price will remain unchanged due to the law of supply and demand.
Of course, many cryptocurrencies are used by a very small group of people, unlike other cryptocurrencies like Bitcoin or Ethereum that are recognized and requested by almost 100% of crypto users
Of course, a government of a country can prohibit the use of one or all cryptocurrencies by its citizens, such is the case of China, which in 2021 prohibited the sale and use of any cryptographic asset within its territory.