India behind Vietnam, Turkey in estimated crypto gains in 2021: Chainalysis

India behind Vietnam, Turkey in estimated crypto gains in 2021: Chainalysis
Synopsis

United States topped the charts with an estimated realized gain of $49.95 billion, followed by the United Kingdom (UK) with estimated realized gains of $8.16 billion. The US topped the UK by about a wide margin of 575 per cent.

NEW DELHI: 2021 was a milestone year for cryptocurrencies, wherein virtual digital assets such as Bitcoin, Ethereum and many more bluechip crypto tokens scaled new life highs.

Thanks to this rally, investors around the world realized total gains of $162.7 billion in 2021, compared to just $32.5 billion in 2020, shows data released by crypto analytics firm Chainalysis.

But investors from which countries have added the most wealth? Answering the questions surrounding the theme, Chainalysis has released data for the second year in a row. This year, it has moved beyond Bitcoin and added more crypto tokens in its report.

Geographical analysis in cryptocurrency is difficult due to the technology’s decentralized nature. Chainalysis has attempted to estimate this through a combination of transaction data and web traffic data.

In its Global Crypto Adoption Index, derived through its methodology, the Chainalysis has included as many as 50 countries.

United States topped the charts with an estimated realized gain of $49.95 billion, followed by the United Kingdom (UK) with estimated realized gains of $8.16 billion. The US topped the UK by about a wide margin of 575 per cent.

Germany ($5.82 billion), Japan ($5.51 billion) and China ($5.06 billion) were other names in the top 5 countries in estimated realized gains, the data suggested.

Jennifer Lu, Cofounder at Coinstore said the exponential increase in crypto profits in 2021 underlines the fact that crypto as an investment class has performed better than the traditional asset class. “We strongly believe that a homogenous global regulatory framework for cryptos is the need of the hour as it will fast-track the adoption of crypto-related products and services,” she added.

Chainalysis analyzed that many emerging market countries have embraced cryptocurrency for remittances and as a response to currency devaluation.

In 2021, China’s total estimated realized cryptocurrency gains were $5.1 billion, up from $1.7 billion in 2020, for a year-over-year growth rate of 194 per cent. China’s lower growth rate most likely reflects a decline in the country’s cryptocurrency activity following government crackdowns.

India did not even make it to the top 20 names. It stood at 21st position with an estimated realized gain of $1.85 billion, lagging behind Asian peers such as Turkey, South Korea and even Vietnam.

Shivam Thakral, CEO of BuyUcoin, said, “It’s a great encouragement for crypto community across the globe to see that crypto investors have made handsome profits by putting their faith in crypto assets.”

India with crypto gains of around $1.8 billion is impressive despite the regulatory fluctuations, he added. India has the potential to be numero uno in the crypto gains if the industry is nurtured by a healthy regulatory framework, according to Thakral.

Anndy Lian, Chairman, BigONE Exchange said Vietnam’s cryptocurrency investment performance is the one that surprises me most.
Turkey ranked 11th in GDP at $2.7 trillion but sixth in realized cryptocurrency gains at $4.6 billion, whereas Vietnam ranks 25th in GDP at $1.1 trillion but 16th in realized cryptocurrency gains at $2.7 billion.

War hit Ukraine ranks 40th in GDP at $576 billion but 13th in realized cryptocurrency gains at $2.8 billion, whereas the Czech Republic ranks 47th in GDP at $460 billion but 19th in realized cryptocurrency gains at $1.9 billion.

Ethereum, meanwhile, was the most noteworthy gainer among the crypto assets, the study suggested. Ethereum edged out Bitcoin in total realized gains globally at $76.3 billion.

Chainalysis believes this reflects increased demand for Ethereum as the result of DeFi’s rise in 2021, as most DeFi protocols are built on the Ethereum blockchain and use it as their primary currency.

While most individual countries follow this pattern, there are some notable exceptions, it said in the blog.

Japan received a much higher share of realized gains from Bitcoin at just under $4.0 billion, compared to just $790 million in realized Ethereum gains.

“Ethereum being one of the most popular coins in the world just edged out Bitcoin in total gains. This is a close call in my opinion. Based on on-chain analysis, the overall gains should be fairly equal,” said Lian from BigOne.

“2021 that is mostly led by the Defi trend could be the main catalyst for Ethereum,” he added. “For 2022, we may be seeing Solana, Avalanche and Cronos rising up the ranks.”

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Blockchain Cannot be Developed behind Closed Doors “To change the real world, blockchain companies need to step out of blockchain world.”

Blockchain Cannot be Developed behind Closed Doors “To change the real world, blockchain companies need to step out of blockchain world.”

The blockchain industry does not lack hype, for sure. New blockchain companies seem to spruce up every single day. Initial Coin Offerings (ICOs) raised more money in the first three months of 2018 than the whole of 2017, according to data collected by CoinDesk.

Source from: https://www.coindesk.com/6-3-billion-2018-ico-funding-already-outpaced-2017/

However, blockchain is still a distance away from mass adoption. The technology remains in a nascent stageand has not impacted people around the world yet, which has led many to question whether the world can really be transformed by blockchain.

Linfinity CEO Anndy Lian believes that in order to speed up the tapping of blockchain’s potential, blockchain companies need to proactively try to merge their technologies with traditional businesses and industries, especially those that are less digitalised at the moment.

He said, “The appearance of blockchain provided traditional industries with unlimited heights of imagination. However, there are many problems that blockchain needs to overcome first.

“It cannot work behind closed doors, as its first-priority role should be a technological service that is integrated with traditional industries. In this process, blockchain technology can continually be upgraded.”

A wider audience Integrating blockchain with traditional businesses and industries will, most importantly, let it reach a wider audience.

The value of the blockchain market is estimated to be USD 550 million this year. While the size of the industry is rapidly increasing, it is hardly comparable to already established industries.

For example, Linfinity aims to provide blockchain-based solutions for the supply chain to make the supply chain industry more transparent and secure. The global supply chain management market size is worth around USD 14 billion now, making it 25 times as large as the entire blockchain market.

Hence, when Linfinity integrates blockchain into supply chain management, it opens up blockchain to a whole new paradigm of possibilities and business use-cases. By combining blockchain effectively with pre-existing technologies to help traditional businesses, it brings blockchain directly to the masses, rather than having blockchain stay within specific circles.

The blockchain process of transacting and storing information on a decentralised, distributed ledger yields many benefits for enterprise application data. That makes supply chain management a good use case — a consortium of stakeholders in a supply chain can own, operate and enforce rules for their own shared blockchain.

Combine with other technologies

Blockchain itself should be used sparingly, where it is needed. The ample cryptography which blockchains employ also make them slow. That provides another reason to reconsider off-chain processing and storage alternatives.

In order to maximise its effectiveness and applicability to enterprise scenarios, it needs to be used together with other pre-existing great technologies.

Lian said, “Making blockchain more widespread requires a process. Simply relying on the technology itself is unproductive.”

“Linfinity combines blockchain with Artificial Intelligence and the Internet of Things (IoT). We also focus on the demands of businesses and consumers, so we can speed up the commercialisation of blockchain.”

Besides, having data from the supply chain recorded onto blockchain, Linfinity plans to use other technologies, such as Artificial Intelligence, to conduct real time analysis and to magnify the value of supply chain data.

It will then be able to provide innovative value-add services such as smart energy monitoring, smart sales monitoring, and predictive maintenance.

For blockchain world to expand its reach to the wider world, blockchain companies need to proactively step out. Having access to wider markets and amplifying blockchain’s effectiveness aside, that is the only way blockchain can truly enhance the world.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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