Most Bitcoin supporters will argue that cryptocurrency will have a large impact on the societies of developing countries. The idea is that in the near future, this popular non-government related asset will provide emerging markets with the opportunity to access and enjoy banking-like features and services. This will give these markets access to the global economy.
The Native Currency of the Internet
The idea undoubtedly gives Bitcoin a virtuous image. But theoretical discussions aside, there’s little proof that the adoption of Bitcoin is even happening. Until recently, that is.
A recent study conducted by Passport Capital strongly indicates that emerging markets are quickly embracing Bitcoin. Their purchase patterns also show that their interest in the technology runs deeper than mere speculation. This is hinted at the amount of trading by emerging markets at Local Bitcoins. The volume has far exceeded that of developed markets.
Bitcoin in Emerging Markets
Passport Capital utilized data from Coin. Dance and MSCI categories to determine which countries fall under what market classification. As expected, Australia, most of Europe, Japan, and Singapore are classified as developed markets. Meanwhile, most of Asia, Russia, Brazil, Chile, Mexico, and South Africa are considered emerging markets.
Surprisingly, the emerging markets initially exceeded the volume of developed markets back in 2017.
The research also showed that the interest in Local Bitcoins trading in developed countries follow price while emerging markets went for volume. This suggests that buyers in progressive countries were more into speculations while emerging nations are actually using Bitcoins.
It’s likely that Bitcoin is being used for more practical purposes in the emerging markets, like access to digital banking services or as a means to ride out an economy when the country is in a political or financial crisis.