Bitcoin Gains by Country (from Chainanalysis)

[tranthidung]

This thread is written with information from two sourced articles.

• Bitcoin Gains by Country: Who Benefited the Most from the 2020 Boom?
• Bitcoin flowing through exchanges has realised $78 billon of gains, half since November
• I don't quote their reports here, please visit their sourced articles to get full details

2020 Estimated Realized Bitcoin Gains by Country

• United States: $4.4 B
• China: $1.1 B
• Japan: $0.9 B
• United Kingdom: $0.8 B
• Russian Federation: $0.6 B
• Germany: $0.6 B
• France: $0.6 B
• Spain: $0.5 B
• Korea, Rep., Ukraine, Netherlands, Canada, Vietnam: ~$0.4 B

Impressive stats for the USA with $4.4 B gains and this figure is about 4 times of China. China is the leader in Asia continent on which a big surprise is from India. The serious and chaotic regulations from Indian governments make India falls to rank 18^theven it is the second populous nations on Earth.

Over months in 2020, most of gains are in last months of 2020. Investors from the USA have dominant profits and most of them are made on Coinbase.

Dominant gains from the USA investors are understandable if we are aware of institutional investments in 2020. You can see it in the Bitcoin Treasuries as well. Most of institutional investors are USA companies.

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[jackg]

I feel like Indian's must've been massively underreported. I guess this data comes from exchanges as mining profits would likely see China, sweden and Iceland higher up (or on the list).

I'd put most of the nordics at least around 0.2bn.

I imagine this data could probably be cross compiled with node by country information to determine a more accurate figure?

[tranthidung]

I feel like Indian's must've been massively underreported. I guess this data comes from exchanges as mining profits would likely see China, sweden and Iceland higher up (or on the list).

I'd put most of the nordics at least around 0.2bn.

I imagine this data could probably be cross compiled with node by country information to determine a more accurate figure?

Methodology (from my understanding)

• On-chain Bitcoin flows to exchanges
• Estimated gains from it
• Gain distributions based on share of geographical web traffic

It does not relate to mining, intentionally. The first article has a part for its methodology

How did we do this? Geographic analysis in cryptocurrency is difficult due to the technology’s decentralized nature. It’s impossible to know for sure where the parties of any individual transaction are located. However, we can produce a good estimate using transaction data from the services Chainalysis tracks.

First, we measure the on-chain flows to each cryptocurrency exchange, and approximate the total U.S. dollar gains made on the asset in question (Bitcoin in this case) by measuring the differences in the asset’s price at the time it was withdrawn from the platform versus when it was received. We then distribute those gains (or losses) by country based on the share of web traffic each country accounts for on each exchange’s website, as we did when building our Global Crypto Adoption Index. That analysis gives us a reasonable estimate for the realized gains Bitcoin investors in each country earned in 2020, though it doesn’t account for gains on assets that have yet to be withdrawn from an exchange.

Local unfriendly regulations in India force the locals to have more P2P trades. The combined trading volume on Local Bitcoins and Paxful has increased considerably since 2019 and 2020. Source

Obviously, it is part of Indian P2P trades, not all, and also not about gains.

[Haunebu]

Local unfriendly regulations in India force the locals to have more P2P trades. The combined trading volume on Local Bitcoins and Paxful has increased considerably since 2019 and 2020. Source

Obviously, it is part of Indian P2P trades, not all, and also not about gains.

I feel that the Indian figure should be higher too. Unfriendly regulations in India didn't really deter many of their citizens to be honest since they got used to these warnings which are occasionally issued by the RBI.

They usually propose bills to scare the public though they never get converted into laws. Also, their government has taken a softer stance against crypto in recent times.

[evilgreed]

               And here I thought china had the biggest gains when it comes to all crypto currencies including bitcoin. Turns out that the united states of America really is the one who had enjoyed so much gains in this industry despite the several regulations that were against any cryptocurrency. There was even a time back then when projects that were still starting up never accepted investors from the US. Thus just goes to show that no matter how you restrict the people, they will find ways to do things that they want.

[Kittygalore]

I expected China to be the one at the top but it seems that their propaganda is a really made up of lies because US is at the top with a 3 billion difference. Didn't see my country though, although I am not that disappointed because the less publicity for it then the better because the government won't take notice.

[tranthidung]

I feel that the Indian figure should be higher too.

I don't know.

Unfriendly regulations in India didn't really deter many of their citizens to be honest since they got used to these warnings which are occasionally issued by the RBI.

They usually propose bills to scare the public though they never get converted into laws. Also, their government has taken a softer stance against crypto in recent times.

Governments will not ban Bitcoin. They want tax from crypto investment or trading and they will not receive tax if they use their ban hammer. The trend would be mainstream adoption, not ban.

And here I thought china had the biggest gains when it comes to all crypto currencies including bitcoin.

China is not a biggest economy and not the most friendliest nation with cryptocurrency so logically China should not have biggest gains in crypto.

Turns out that the united states of America really is the one who had enjoyed so much gains in this industry despite the several regulations that were against any cryptocurrency. There was even a time back then when projects that were still starting up never accepted investors from the US. Thus just goes to show that no matter how you restrict the people, they will find ways to do things that they want.

Logic enough if you look at the OP, with my screenshots that shows origins of institutes, companies, etc. They are mostly from the USA. and we know how big gains the crypto market has in 2020.

I expected China to be the one at the top but it seems that their propaganda is a really made up of lies because US is at the top with a 3 billion difference. Didn't see my country though, although I am not that disappointed because the less publicity for it then the better because the government won't take notice.

Those figures are estimations and probably not accurate. The gap between the USA and China can be bigger or smaller but it only reflects the fact that the USA is leading the crypto market in this bull run.

Think different. Why are people worrying too much with FUD from China? Even it is real bad news, not FUD, people should not over worry like that.

[dkbit98]

This statistics is only for reported gains and they are probably much higher if we include unreported gains from coins lost in terrible boating accidents.

Governments will not ban Bitcoin. They want tax from crypto investment or trading and they will not receive tax if they use their ban hammer. The trend would be mainstream adoption, not ban.

We can expect to see some countries tried to ban Bitcoin at least partially like we saw in case of China or Iran and I would not be surprised to see more countries doing something similar in future.

China is not a biggest economy and not the most friendliest nation with cryptocurrency so logically China should not have biggest gains in crypto.

Newsflash, Chinese economy is currently biggest in the world and interesting thing is that while all other countries suffered a lot during circus corona, China reported big growth of their economy, so think about that.

The gap between the USA and China can be bigger or smaller but it only reflects the fact that the USA is leading the crypto market in this bull run.

I don't think that any specific country is leading the bull run but United States are for sure leading in terms of inflation and debt that can indirectly affect Bitcoin price as purchasing power of dollar is rapidly going down.

[nakamura12]

That's a lot of money In USA. I am watching many videos on youtube and heard some of them say about bitcoin and some said they accepted bitcoin. Some even send bitcoin if the person who luckily won the giveaway need him to pay more money for shipping fee. That's just for people who have bitcoins and this analysis also shows that USA companies have owned more bitcoins than those people

[hugeblack]

What impresses me is China because as far as I know Bitcoin is banned in that country and you can't trade, sell, buy as easily as in the US, isn't it strange that the second country and many European countries have a lot of crypto-friendly laws?
The map is still in its initial stages and we will see more investments soon. Bitcoin is growing faster than normal.

[Baofeng]

What impresses me is China because as far as I know Bitcoin is banned in that country and you can't trade, sell, buy as easily as in the US, isn't it strange that the second country and many European countries have a lot of crypto-friendly laws?
The map is still in its initial stages and we will see more investments soon. Bitcoin is growing faster than normal.

On the contrary, I'm not surprised by China though, and I thought it could be higher as they have the monopoly of bitcoin mining (prior to the supposedly ban by the government).

Vietnam? very interesting data, how can it even higher than India or even Australia (who have adopted bitcoin since 2017).

[hatshepsut93]

The section "countries and governments that own Bitcoin" is very much incorrect. That old news report about Bulgarian government seizing 200,000 coins has never been confirmed and those alleged coins were never found. Similar thing with Ukraine - the top guy with ~$1 billion in BTC on that report about Ukrainian government officials holding BTC says he was mistaken and he doesn't hold any BTC at all. Also, simply can't count private possessions of government officials as "government holdings of BTC" - those are their coins, not the governments.

[ILuckyGuyI]

Look at that! United States quadrupled China in terms of Bitcoin gains. But now things will be much different. Because China has banned cryptocurrencies and cracked down on Bitcoin mining. So, it is obvious that China's gains are going to come down really sharply.

[so98nn]

I’m not sure if population has got anything to do with the countries income or gains. I mean India is second most populated but it does not mean that each and every Indian is involved with the bitcoin.
Considering the developing nature of India, it is hardly started to accept the digital payments at every corner (vegetable seller to smoke seller) which tells the whole story.
Most of the population still living under poverty line and many are still farmers with low wagers.

That is not the way to conclude India. (By population).

Other countries are way to different than india, with advance tech, rich people, and most important early adapter of the bitcoin and crypto space.

That’s my opinion but I think it’s logical enough.

[tranthidung]

Newsflash, Chinese economy is currently biggest in the world and interesting thing is that while all other countries suffered a lot during circus corona, China reported big growth of their economy, so think about that.

China is the circus and their economy is not healthy as their government claims to be. Components in Chinese economy are easier to be collapsed than in the USA. The government reacted to be arrogant and rude too soon that definitely affect the global responses against China. More harm than good effects for China in long perspective.

I don't think that any specific country is leading the bull run but United States are for sure leading in terms of inflation and debt that can indirectly affect Bitcoin price as purchasing power of dollar is rapidly going down.

You are right but manipulations are prepared and triggered at right time. After that, all things will be automatically done.

Vietnam? very interesting data, how can it even higher than India or even Australia (who have adopted bitcoin since 2017).

I am surprised too.

They always banned bitcoin

It is a misleading term. China have never accepted Bitcoin so please don't say "China ban Bitcoin, China unban Bitcoin"

they cannot control its people by owning Bitcoin anymore, sooner or later they'll make this one legal as well.

It is one of main purposes of satoshi to create Bitcoin. Be your own bank.

It's good to see richest countries on top, that only means to me they are indeed supporting Bitcoin.

Richest nations can have bigger bitcoin adoption in their populations. Nevertheless, it is probably not true at all. They only need the richest classes to invest in Bitcoin, with their dominant capital. Only investments from the richest would be enough to contribute to total capital investment into Bitcoin for rich nations.

Basically, in any nation, 80% of assets probably are holding by 20% of population.

I mean India is second most populated but it does not mean that each and every Indian is involved with the bitcoin.

Exactly. We don't have enough data, or at least two important figures

• Rate of crypto adoption in Indian population
• Total capital that is invested into cryptocurrency then how many of them are from the Indian rich
• Not always true but the rich tend to be more wisely with their investments and mostly will end with profit rather than losses for the crowd

[oHnK]

For other repliers, they focused on China mostly. I looked at another side of this thread, why the US became the 1st gainer country among others? The first reason is the US society have a good financial literation, how they manage their active and passive income. Its society jobs are the same as another country's society jobs, but the level of financial literation is so far different. The second reason is the US government policy on BTC is flexible than other countries, for example, the China government policy. The government is too strict forbids their society to invest in BTC. This is just my simple view of the data which is OP shared.

[stompix]

The first reason is the US society have a good financial literation, how they manage their active and passive income. Its society jobs are the same as another country's society jobs, but the level of financial literation is so far different.

The first reason is that they have money!
It doesn't matter if a country has a 10 times bigger population if they have 1/5 other wages and they spend 90% on basic necessities.

On an average an Indian spends 3.5% of his/ her daily income for a plate of food as compared to 0.6% by a New Yorker, according to the “Cost of a Plate of Food” report released by the UN's World Food Programme (WFP) on Friday.

Not only are they left with a lower percentage of the wage for investment but also the same wage is a lot smaller, Americans spend 150 billion on international tourism, Indians 10. And what's more important, PPP indicators mean nothing in this case, in terms of purchasing power 1$ in India might be more than 1$ in the US, but no matter where you are in this world 1$ will buy the same amount of BTC.

One note to the statistics:

It mentions Ukraine on the countries and governments that own bitcoin.
It's not like that, the government is not holding any coins, it's members of the movement that hold bitcoin as their own private property.
By that rule, we should report the Us also as they have at least one senator holding coins.

[oHnK]

The first reason is the US society have a good financial literation, how they manage their active and passive income. Its society jobs are the same as another country's society jobs, but the level of financial literation is so far different.

The first reason is that they have money!
It doesn't matter if a country has a 10 times bigger population if they have 1/5 other wages and they spend 90% on basic necessities.

If we look at the difference between China and the US, it's not just about the money they have.  Because China is also a big country even with very competitive in many ways.  Money is indeed a basic thing but it is not a contributing factor to why there is such a huge difference between US and Chinese gains.

[Kittygalore]

~

Those figures are estimations and probably not accurate. The gap between the USA and China can be bigger or smaller but it only reflects the fact that the USA is leading the crypto market in this bull run.

Think different. Why are people worrying too much with FUD from China? Even it is real bad news, not FUD, people should not over worry like that.

I know that it is a rough estimate but I don't think that they will deviate too far to the exact number, that I am sure of. The reason why people worry too much is because average people are dumb and they have a hard time processing bad news especially if it is sudden.

[tranthidung]

I know that it is a rough estimate but I don't think that they will deviate too far to the exact number, that I am sure of. The reason why people worry too much is because average people are dumb and they have a hard time processing bad news especially if it is sudden.

Garbage in, garbage out. If we don't know of their methodology and can not verify their data (for whatever reasons), those stats are simply for curiosity, entertainment and low value for reference.

The East and the West will try to control bitcoin market and the leverage will fall into one way or another at different times. Bitcoin market is a global one and neither the East nor the West can dominantly control it forever.