A report compiled by the blockchain forensics company Chainalysis indicated that cryptocurrency adoption is growing globally. By exploring four key metrics and separating the data country by country, the firm’s Global Crypto Adoption Index 2020 showed that Ukraine, Russia, and Venezuela lead the way.
The metrics take into consideration the purchasing power parity (PPP) per capita. They measure on-chain cryptocurrency value received, on-chain retail value transferred, the number of on-chain cryptocurrency deposits, and the peer-to-peer exchange trade volume, which doesn’t appear on the blockchain.
The final scores range from zero, representing the lowest cryptocurrency-related activity, to one – the highest registered activity per capita.
Chainalysis admitted that due to the decentralized nature of digital assets, it’s “impossible to know the precise amount sent and received on-chain by addresses in a specific country.” However, by measuring the activity on platforms and distributing it by countries based on web traffic, the company produced a “strong estimate.”
Crypto Adoption By Countries: The Top Three
As seen in the above chart, Ukraine leads the way with the highest possible score. The country’s legislative arm, the Verkhovna Rada, reportedly adopted a draft law last year that legalized cryptocurrencies as means of payment and investment within its borders.
Russia takes the second spot, which could be rather surprising. The largest-country by landmass has been somewhat dubious in its cryptocurrency legislation policies. Before passing the On Digital Financial Asset (DFA) bill this summer, previous proposals suggested imprisonment for Bitcoin usage and notably high penalties.
Although those strict measures didn’t go in the final version of the bill, a recent set of amendments proposed introducing a full-scale ban on digital asset usage. However, it seems that Russian citizens are fond of cryptocurrencies, despite the legislative uncertainties.
Venezuela completes the top three. Another report from Chainalysis concluded that the country’s ongoing financial crisis has highlighted some cryptocurrency benefits. Consequently, the interest in digital assets has spiked in the last few years.
China And The US Trail
Chainalysis’s report noted that the two largest countries by nominal GDP, namely the United States and China, occupy the sixth and fourth positions, respectively. Kenya, with high levels of on-chain value transferred and on-chain deposits, separates them and ranks 5th.
Despite being the most populated nation, China’s high spot could also be classified as unexpected because of its controversial approach.
On the one hand, China has repeatedly outlined that digital assets are banned, and it emphasized its “blockchain, not Bitcoin” narrative. On the other, however, a recent report noted that cryptocurrencies are not entirely banned, and China is responsible for the most substantial portion of BTC’s global hash rate.
According to Chainalysis, China’s results display high numbers for on-chain deposits and value received, and retail value received. The country trails only in the peer-to-peer exchange trade volume.
The US shows solid numbers regarding the on-chain deposits and the P2P trading volume. However, the on-chain and retail value received are relatively low per capita.
Globalization For Crypto
In conclusion, the analytics company said that from the 154 analyzed countries, only 12 had “so little cryptocurrency activity that we gave them an index score of zero.”
“That’s a testament both to the excitement around cryptocurrency as an investment and, especially in the developing world, as a means of value storage and medium of exchange.”
Buyer of Jack Dorsey’s ‘genesis tweet NFT’ reportedly detained in Iran
Iranian Cyber Police have reportedly arrested Bridge Oracle CEO Sina Estavi, according to a tweet pinned to Estavi’s Twitter account.
A rough translation of the tweet reads:
“The owner of this account was arrested on charges of disrupting the economic system by order of Special Court for Economic Crimes. Official judicial authorities will provide additional information.”
The same tweet is also pinned to the official account of Bridge Oracle, a Tron Network-based public oracle system. At the time of writing, the price of Bridge Oracle’s native token, BRG, has taken a sharp dive, crashing by more than 65%, according to data from TradingView.
Bridge Oracle is said to be a Malaysia-based blockchain company, but Estavi’s other venture, cryptocurrency exchange Cryptoland, was operating in Iran. Cryptoland’s Twitter account shares the same pinned tweet. No further information was shared publicly by the authorities.
Estavi is known for his heated bidding battle with tech entrepreneur and Tron CEO Justin Sun to buy Jack Dorsey’s first-ever tweet as an NFT. Twitter’s first tweet is dated March 2006 and reads, “Just setting up my twttr.”
In the end, Estavi successfully purchased the NFT for more than $2.9 million, or 1,630 Ether (ETH). Dorsey converted the proceeds to Bitcoin (BTC) and donated them to a charity organization in Africa.
Earlier this year, Estavi was sued by former Bitcoin.com CEO Mate Tokay for allegedly failing to pay him for his services. In his claim, Tokay also alleged that there’s an inconsistency between the purported and actual circulating supply of BRG.
Cointelegraph reached out to Bridge Oracle for comment. This article will be updated should they reply.
Is Bitcoin nearing another Black Thursday crash? Here’s what BTC derivatives suggest
Bitcoin’s 51.4% crash in March 2020 was the most horrific 24-hour black swan event in the digital asset’s history. The recent price activity of the past week has probably resurrected similar emotions for investors who experienced the Black Thursday crash.
Over the past week, Bitcoin’s (BTC) price dropped 29% to reach a three-month low at $42,150. $5.5 billion in long contracts were liquidated, which is undoubtedly a record-high in absolute terms. Still, the impact of the March 2020 crash on derivatives was orders of magnitude higher.
To understand why the current correction is less severe than the one in March 2020, we will start by analyzing the perpetual futures premium. These contracts, also known as inverse swaps, face an adjustment every eight hours, so any price gap with traditional spot markets can be easily arbitrated.
Sometimes, price discrepancies arise during moments of panic due to concerns about the derivatives exchange’s liquidity or market makers being unable to participate during times of extreme volatility.
On March 12, 2020, the Bitcoin perpetual futures initiated a much larger descent than the price on spot exchanges. This move is partially explained by the cascading liquidations that took place, creating a backlog of large sell orders unable to find liquidity at reasonable prices.
The aftermath of the bloodbath resulted in futures perpetual contracts trading at a 12% discount versus regular spot exchanges. BitMEX, the largest derivatives market at the time, went offline for 25 minutes, causing havoc as investors became suspicious about its liquidity conditions.
By comparing this event with the most recent week, one will find that sustainable price discrepancies are very unusual. Even a temporary 12% gap doesn’t occur, even during the most volatile hours.
Take notice of how the perpetual contracts reached a peak 4% discount versus regular spot exchanges on May 13, although it lasted less than five minutes. Market makers and arbitrage desks could have been caught off guard but quickly managed to recoup liquidity by buying the perpetual contracts at a discount.
To understand the impact of those crashes on professional traders, the 25% delta skew is the best metric, as it compares similar call (buy) and put (sell) options’ pricing. When market makers and whales fear that Bitcoin’s price could crash, they demand a higher premium for the neutral-to-bearish put options. This movement causes the 25% delta skew to shift positively.
The above chart displays the mind-blowing 59% peak one-month Bitcoin options delta skew in March 2020. This data shows absolute fear and an incapacity to price the put (sell) options, causing the distortion. Even if one excludes the intraday peak, the 25% delta skew presented sustained periods above 20, indicating extreme “fear.”
Over the past week, the skew indicator peaked at 14%, which isn’t very far from the “neutral” -10% to +10% range. It is indeed a striking difference from the previous months’ negative skew, indicating optimism, but nothing out of the ordinary.
Therefore, although the recent 29% price drop in seven days could have been devastating for traders using leverage, the overall impact on derivatives has been modest.
This data shows that the market has been incredibly resilient as of late, but this strength might be tested if Bitcoin’s price continues to drop.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Bullish for Bitcoin? 39 Million US Households to Receive up to $3.6K Monthly Stimulus Starting July 15th
A new rule under the hat of the COVID-19 relief bill will see 39 million US households receive up to $3,600 monthly starting from mid-July. Given the history between BTC’s price appreciation since the first-ever stimulus bill, the narrative rises now if this latest endeavor will push bitcoin higher again.
39M American Families to Receive up to $3.6K Per Month
The COVID-19 pandemic pushed the US government (and many others) to undertake extreme measures to help alleviate the financial pain for its citizens. The stimulus checks were among the initiatives, and the first ones reached their recipients in April 2020.
Since then, the government passed a few more similar bills with new checks sent to the majority of the American population. As Reuters reported on May 17th, another set of measures is coming for certain citizens.
Operating as part of the relief bill signed into law by President Biden in March, it will work as a tax credit available to some parents. Those who have children under the age of six (in 2021) will receive up to $3,000 or $3,600 for each child – subject to income restrictions.
According to Reuters, this means that 39 million households will automatically or by direct deposit receive the funds every month, starting on July 15th.
Biden has also asked Congress to extend the tax credit for the next four years. His administration believes these measures could “lift more than five million children out of poverty” – which is nearly 50% of the youngsters.
Bullish Case for Bitcoin?
While the government justifies the relief bill by helping its population, these multi-trillion dollars have to come from somewhere. In the US case, central authorities had to print excessive amounts of the greenback in relatively short periods.
Thus, some reports estimated that more than a fifth of the circulating USD had been created in 2020 alone. This raises concerns about potential inflation and even hyperinflation among experts.
Shortly after the first stimulus checks reached their destinations, several legendary traditional investors, including Paul Tudor Jones III and Stan Druckenmiller, highlighted the idea of purchasing bitcoin to protect themselves against inflation.
After all, bitcoin has a pre-determined total supply of 21 million coins. The halving occurring every four years assures decreasing inflation. Consequently, PTJ, Druckenmiller, and many, many more, opined that BTC could serve as a digital store of value.
JPMorgan (and others) even said bitcoin is eating away the market share of the traditionally regarded as the ultimate safe-haven asset – gold.
This adoption from prominent names resulted in a substantial price appreciation for BTC in the next 13 months (since the first checks). The asset traded around $6,000 in April 2020 before it skyrocketed ten-fold by April 2021. Despite its most recent correction, bitcoin is still significantly higher than the pre-relief bill levels.
As such, the latest government initiative could push investors towards BTC once again in search of an asset with a limited supply.
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