Bitcoin usage patterns are different between developed and developing countries

Passport Capital, the U.S. investment enterprise analyzed data from the Local Bitcoins and released an analysis that focused on the possibility of actual use of bitcoin in developing countries, which contradicts with falling virtual currency prices.

Passport Capital shows certain gap in bitcoin transactions by combining developed and developing markets data.

The blue chart in the above figure represents the trading of bitcoin in developed markets and the orange chart represents the trading of developing and emerging markets. Comparing each chart, one can see that the chart of oranges is way above the volume of transactions in developed countries.

The interesting part is that when the virtual currency bubble bursts in 2018, the volume of virtual currency transactions in both markets decreased; however, ever since the transaction is decreased, the volume of virtual currency transactions in developing countries has increased.

According to Passport Capital, the basic form of transactions is traded for speculative or investment purposes in both developed and developing markets, but the analysis of the Local Bitcoins data shows that most Bitcoin transactions in developing countries are not for speculative development but for practical use.

In addition, from the perspective of Passport Capital, it explains that citizens' demand for BTC in developing markets is greater than in developed countries because developing countries' public currencies are becoming unstable and access to Venmo is restricted.

There is no clear evidence has been provided in this data, it is also true that there are some logical aspects of the data. For example, according to the Local Bitcoins data, 80 percent of transactions in emerging markets are made up of Russia, Venezuela, China, Nigeria and Colombia.

Reporter Jenny Lee (news@dailycoinews.com)의 기사 더 보기

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