Bitcoin is currently experiencing the fourth biggest slump in its history. The cryptocurrency has lost about 71% of its value. This applies not only to Bitcoin, but also to other cryptocurrencies. Financially, the digital currency market is in a bear market.
Bear markets are common in most financial markets. Most experts believe the current one has about 250 days to go when looking at past cycles. This market cycle is creating fear and the world has responded with mixed reactions.
The following article will explore how parts of the world have embraced crypto with the current bear market.
Adoption trends worldwide
Europe is lagging behind the rest of the world in adopting cryptocurrencies.
While the percentage of Europeans using cryptocurrency is around 17%, it is below the global average of 23%. This percentage is comparable to other industrialized countries.
According to research by Gemini, cryptocurrency adoption rate was 18% in the United States and 20% in Australia.
Many European countries have not yet warmed to digital currencies. Here is a breakdown of EU countries and their crypto adoption levels:
- Germany – 5.8%
- France – 5.4%
- Poland – 2.83%
- Netherlands – 2.75%
- Spain – 2.73%
- Italy – 2.26%
- Czech Republic – 2.08%
- Sweden – 1.88%
- Greece – 1.71%
- Austria – 1.62%
The pandemic has impacted adoption across the continent, with the UK leading the race.
– North America
North America could be on track to become the second-largest crypto market, receiving about $750 billion in digital currencies between July 2020 and June 2021, more than half the 2021 crypto market size of $1.3 billion.
However, with this large market, the continent lags behind in the adoption of digital currencies and the types of investments that come with them.
It’s understandable as people in the United States and Canada have several different investment choices compared to the rest of the world. The current bear market in the crypto world has them holding onto options they already trust more.
Experts predict that when the crypto market picks up again, this market has the highest potential to acquire the most crypto assets in the world, not only because 32.6% of wealth is concentrated there, but also because of the increasing adoption of crypto and blockchain projects.
– South America
South America has seen an exponential increase in cryptocurrency adoption in recent years. This can be attributed to many things.
The first of these is the region’s high inflation. Many people in this market live in countries with volatile and weak currencies. This makes them willing to invest their wealth in other assets.
It used to be the dollar or gold, but digital currencies have given them a new option.
There is a lot of political instability here, and governments usually confiscate the wealth of individuals. Crypto offers them a way to keep their wealth safe from censorship by the authorities.
Crypto transactions tend to replace traditional banking services in these regions. This is because the crypto industry allows for faster payments with dramatically low fees while protecting funds from volatility.
Faced with the downward spiral in the crypto market, people here are still embracing it because these digital currencies give them better access to the global market.
Asia leads the rest of the world in cryptocurrency adoption. Countries like India, Thailand and Vietnam are leading this trend. The market is broadly based and largely conservative in terms of financial practices.
But again, volatile conditions and political instability are rampant in other parts of the world.
Crypto is very popular in China because it offers citizens a way to escape the yuan’s tight control. Authorities are also finding it difficult to confiscate crypto assets to cripple any resistance they face.
In places like Japan and Korea, citizens are more used to trying new things and being futuristic. Several apps have emerged that contain cryptocurrency. This experimentation has also driven crypto adoption trends, especially in the wake of the Covid-19 pandemic.
Asia is already ahead of the digital currency pack with almost 20% of the population interested in it. The market for crypto is looking good in this region.
Countries like Nigeria, Kenya, Togo and Ghana appear to be very high in the global cryptocurrency adoption trends. Most of the grounds in this region are similar to those in South America. Crypto in Africa is a way to participate in a global economy. Protecting their savings from the volatility that their local currencies and financial systems often suffer is becoming an option for locals.
The financial market in Africa is very volatile, with high inflation and political instability. People here think the current bear market losses are better than what they would have suffered with fiat.
Most Africans were already used to digital currencies via cell phone services. Because of this, they find it easy to switch to crypto.
Bear markets are natural in crypto markets and don’t last long. The current decline in cryptocurrency values will soon change. There are signs that things are already changing.