Cryptocurrency has grown in popularity over the past few years with more and more people choosing to invest in digital currency. In 2021, there were around 300 million crypto users worldwide. Businesses have also seen the potential of digital currency, with many integrating a crypto offering into their operations.
With that in mind, merchant machine decided to conduct research on global cryptocurrency adoption by investigating which countries and cities are seeing the highest growth in cryptocurrency usage, as well as what types of businesses are accepting crypto as a payment method.
The United States, Ukraine and the United Kingdom use crypto the most
Merchant Machine’s analysis considered several factors to calculate which countries in the world use cryptocurrency the most. For each country, we looked at the number of crypto owners, the number of businesses that accept crypto payments, the number of Bitcoin ATMs available, and the average search volume for a range of crypto-related keywords. change.
We’ve also included data from the Global Decentralized Finance Index created by Chainanalysis, which demonstrates the growth of DeFi (decentralized finance) around the world. DeFi is a class of decentralized cryptocurrency platforms capable of operating autonomously and built on contract-enriched blockchains. DeFi is one of the fastest growing sectors of the crypto economy, so the growth in DeFi adoption can tell us a lot about the overall use of cryptocurrency.
Below is the full list of countries around the world that have been analyzed to calculate their crypto usage, ranked from highest to lowest usage based on an overall index score.
Merchant Machine’s research found that the United States, Ukraine, and the United Kingdom were the countries with the highest overall crypto usage of all those analyzed.
The United States is one of the most powerful economies in the world, so it’s no surprise to see it top the list when it comes to cryptocurrency usage. According to Chainalysis, “more Americans are devoting a higher share of their purchasing power to cryptocurrency than in almost any other country.”
Ukraine has a much less powerful economy than the United States. It is ranked as the poorest country in Europe in terms of GDP per capita.
Ukraine’s emerging market can explain its heavy use of crypto, especially when it comes to DeFi. Many emerging markets are struggling with currency devaluation, which may push residents to invest in crypto to preserve their savings. Residents of these countries may also be limited in the amount of money they are allowed to send out of the country, and cryptocurrency could allow them to overcome this and transact internationally.
Ukraine also ranks in the top three countries for the number of crypto users, along with Russia and Venezuela. Venezuela has a highly unstable currency due to the country’s socio-economic crisis causing hyperinflation, which could certainly explain why so many of its residents are turning to cryptocurrency instead.
Crypto usage will grow 14.9% globally by 2030
By surveying the percentage of people who owned or used cryptocurrencies over the past three years in 50 different countries, Merchant Machine was able to predict the percentage who would use crypto over the next three years.
Below is the list of countries, with the countries with the highest percentage of crypto users predicted for 2030 at the top.
Nigeria tops the list with around 100% by 2030. This means that if crypto usage continues to grow at its current rate, the entire population of Nigeria will be using cryptocurrencies.
The popularity of cryptocurrency could be explained by the weak economy of the country which makes alternative currencies attractive. The devaluation of the Nigerian currency, the naira, will likely continue to push more and more Nigerian natives to invest in cryptocurrency.
The Philippines, Thailand, Malaysia and India make up the rest of the top five, with the growing use of cryptocurrency. These Asian countries are emerging markets, which may again explain the increased use of cryptocurrency.
Which companies allow purchases using crypto?
Many well-known companies currently accept cryptocurrencies as a method of payment, including Microsoft, Together food, Lush, AT&T, Tic and ExpressVPN.
Crypto users can also make luxury purchases such as jewelry and expensive watches. Online crypto luxury market BitDials is a jewelry and watch retailer that exclusively accepts crypto payments – the first of its kind.
Number of businesses accepting crypto worldwide
Merchant Machine researched 26 countries to find out how many businesses offering different services – accommodation, shopping, sports, transport and cafes/food – in the country’s capital currently accept crypto as a form of payment.
The results are shown in the table below.
The capitals of Colombia, Venezuela, and South Korea came out on top for the number of businesses accepting crypto payments.
In Bogota, Colombia, an impressive total of 86 businesses accept crypto payments. Caracas, Venezuela was close behind with 58, and Seoul, South Korea, with 47.
Shopping, cafes and restaurants were by far the most common type of business offering cryptocurrencies as a form of payment, with transportation being the least common.
How to adapt to the changing payments landscape
The best way to adapt your business to the current crypto climate is to start accepting consumer crypto payments. Use an online crypto payment service provider like Coinbase Where bitpay is the best way to go. Some benefits of adopting crypto payments include:
- Attracts a wider audience – Accepting cryptocurrency payments will attract crypto users to your business, potentially increasing your customer base.
- Faster transactions – Cryptocurrency transactions are processed much faster than traditional payment methods, so your business will receive funds faster. There is also no limit to the number of withdrawals you can make from your account.
- Removes Threat of Fraud – Cryptocurrency is decentralized which removes the threat of fraud or malicious activity as nothing tangible is exchanged.
A potential downside is that cryptocurrency payments aren’t easily implemented – it’s likely that someone with the technical knowledge to set it up would need to be hired. However, given the growing popularity of crypto payments, it could definitely be a worthwhile investment.