Cryptocurrency traders in the U.S. earned Around $ 4 Billion from Bitcoin investments Last Year, Chainalysis shows
A recent report by blockchain analysis firm Chainalysis showed that US crypto users earned $ 4.1 billion by trading the leading cryptocurrency Bitcoin. China came in second place with an estimated total profit of $1,1 billion, closely followed by Japan, whose investors brought in 0,9 billion. The UK completed the top four list with an estimated realized crypto profit of $ 0.1 billion less than Japan.
“US investors collectively made over $ 4 billion in realized bitcoin profits in 2020, more than three times the next highest country, China. This may seem surprising considering that China historically has by far the highest crude cryptocurrency transaction volume, but […] US-focused exchanges saw huge inflows in 2020, which appear to have been realized towards the end of the year….“
The report also broke down the estimated gains in other countries and found that many of them have benefited significantly from their investments in crypto value. According to the report released earlier this week, some countries saw higher profits from Bitcoin compared to their conventional economic rankings.
“What stands out most is the number of countries that seem to be above average in bitcoin investments compared to their rankings in traditional economic metrics.“
Essentially, the findings imply that countries whose crypto sector is flourishing appear to be performing better than those whose crypto sector is already mature. The report cited Vietnam as” the perfect example ” of an emerging market that has made significant gains. The report stated that Vietnam still averages in terms of GDP (ranked 53rd in the world) and is among the middle-income countries.
Despite this non-exceptional economic performance, the country has had a considerably high acceptance of cryptocurrencies, even at the grassroots level. Vietnam’s estimated $ 0.351 billion in crypto gains rank 13th, ahead of Turkey, Australia and Brazil. The Chainalysis report added that this is a common phenomenon in other countries such as Spain and the Czech Republic.
Conversely, in some countries the exact opposite trend could be observed. India has been cited as a prime example of this phenomenon. The country has the fifth largest economy, but ranks 18th with a realized Bitcoin profit of $ 241 million. However, this low Bitcoin gain was explained by the country’s negative attitude towards digital assets.
Elsewhere in the US, a bill to restrict the issuance of permits to mine cryptocurrencies due to environmental concerns was passed by 36 votes to 27 in the New York State Senate yesterday. However, the bill, introduced by Senator Kevin Parker, was amended to ban only mining with carbon-based fuels.