Where Investors Earned The Most From Bitcoin In 2020 [Infographic]

This post was originally published on this site

Interest in Bitcoin and other cryptocurrencies surged across the world over the past couple of months but how much are investors actually making from the boom in digital currencies? A geographic analysis of cryptocurrency is difficult due to decentralized nature of the technology and it is impossible to locate the parties involved in individual transactions with absolute certainty. Software company Chainalysis has been able to provide a decent estimate, however, as it tracks services that involve Bitcoin transaction data. American investors made an estimated $4 billion from Bitcoin last year, a figure that’s three times as high as the next country on the list, China.

Chainalysis states that this is surprising because China has historically boasted the highest raw cryptocurrency transaction volume by far. The United States likely surged past the $1.1 billion Chinese investors made in 2020 as a result of huge inflows that occurred towards the end of last year, resulting in considerable gains. Chainalysis also remarks that several countries appear to be punching above their weight, particularly compared to their rankings in more conventional economic metrics. Vietnam, the Czech Republic and Turkey are all examples that were among the top-25 countries with the highest Bitcoin investment gains.

When it comes to the realized investment gains over time, nearly all countries saw their biggest increases occur towards the end of 2020 as a result of a considerable rise in Bitcoin’s price between mid-October and mid-December. During that period, the cryptocurrency’s price climbed from $11,471 to just over $29,000. This was a lucrative time for U.S. investors in particular who made most of their gains from activity on Coinbase. Investing in Bitcoin is a risky undertaking and its price surged to an all-time high of nearly $65,000 in April of this year before crashing below $36,500 in May. Currently Bitcoin is trading at just below $37,000, according to CoinMarketCap.

*Click below to enlarge (charted by Statista)

MORE FOR YOU