The American citizens profited from BTC in 2020 more than any other nation after the digital currency boom by more than 300 percent.
According to the given data by blockchain analyzing medium Chainalysis, the United States citizens made approximately $4.1b in BTC profits. Nevertheless, the second nation that came up on the list to make the highest profit was China, racking up $1.1b. which in numbers is close to 4x less than what American citizens made from Bitcoin in 2020.
The nation that took the third spot was Japan. With the profit mounting close to $900m, closely coming next in the list was the UK with almost $800 million. Meanwhile, Russia came next in the spot racking in $600 million.
The accumulated profits are calculated based on the stats consisting of withdrawals, deposits and web-based traffic from digital currencies exchanges. Particularly, digital assets profits are difficult to track because of the decentralized essence of the industry.
In 2020, BTC began a journey of bull run motivated by institutional investors overcoming the previous record high of $20k that was recorded in the year 2017. The bullish trend extended through this year as the price surge past the $60k mark.
Why the United States outperformed other countries in Bitcoin profits
The year 2020 came as one of the hardest times for American citizens as a big majority became unemployed during the Covid-19 pandemic, so it was a perfect time for many people to make a quick buck. Meanwhile, the stock market did not have the same luck as Bitcoin, which maintained its strong run complete year around.
According to Chainalysis, the American-based exchanges witnessed massive inflows in 2020 that seemed to have been realized with regards to the latter half of the year, which is probably the main reason for the huge gains.
It can also be plausible that the BTC investment is because of the digital currency’s improving position as the inflation hedge in opposition to the increase in money printing by the central bank.
Normally, the profit made on BTC suggests the position maintained by the digital currency compared to the conventional mode of investments. In spite of so much volatility, BTC seems to allow stakeholders to capitalize on digital assets with good returns.
Nevertheless, the prospect of the digital asset is still shaky in other countries as policymakers try to control the market. Like China’s crackdown on BTC stating the digital currency has the potential to destabilize the existing financial framework.