Vietnamese earn over VND9 trillion profit from cryptocurrencies in 2020
Vietnam ranks 4th for profit earned from cryptocurrencies among Asian economies in 2020, only after China, Japan and South Korea.
Top 25 countries for earnings from Bitcoin in 2020.
In a recent report, Chainalysis published a list of the 25 most profitable countries from the growth of Bitcoin in 2020.
Accordingly, US investors made a profit of up to $4.1 billion by investing in the world's number 1 cryptocurrency, followed by Chinese investors with $1.1 billion. The remaining positions in the top 5 include Japan ($0.9 billion), the UK ($0.8 billion) and Russia ($0.6 billion). This list includes Vietnamese investors, with $0.4 billion of profit in 2020.
On a global scale, Vietnam ranks 13th for Bitcoin-related profitability and in Asia, Vietnam ranked 4th, just behind China, Japan, and South Korea.
According to Chainalysis, due to the decentralized nature of the technology, it is very difficult to find the positions of the parties in a cryptocurrency transaction. The published results were estimated using transaction data from services that Chainalysis tracked.
In its analysis, Chainalysis measured the total volume of Bitcoin transactions at each cryptomoney exchange. They estimated the amount earned by the difference in the price of Bitcoin at the time of entering and leaving the exchange. Chainalysis then distributed this profit based on each country's web traffic on each exchange.
By doing this, Chainalysis produced a report on the profit earned by investors in each country thanks to Bitcoin in 2020. However, Chainalysis's methodology is approximate and does not consider profits from the digital assets still on the exchanges.
Vietnam currently ranks 10th for the Global Cryptocurrency Acceptance Index.
According to Chainalysis, Vietnam is a perfect example of a country where the level of participation in cryptocurrency transactions far exceeds the ranking of the economy.
Although ranked 53rd for GDP with about $262 billion and rated as a low-middle-income country, Vietnam has a fairly high level of acceptance for cryptocurrency transactions.
Accordingly, Vietnam ranks 10th out of 154 countries in the Global Cryptocurrency Acceptance Index. This is one of the rare indexes that Vietnam has the same rank with developed countries such as the US, China or South Africa, even higher than many other developed countries such as the UK, France, Germany, Spain, Japan, South Korea...
This phenomenon also occurs in a number of other countries such as the Czech Republic (54th for GDP, 18th for income from Bitcoin), Turkey (25th for GDP, 16th for income from crypto currency) and Spain (19th for GDP, 9th for income from Bitcoin).
On the other hand, being the 4th largest economy with the 2nd largest population in the world, India is left behind in the crypto economy. In 2020, Indian investors only earned $241 million USD from the increase in the price of Bitcoin, ranked 18th in the world.
This is because the Indian government does not appear to be very friendly to cryptocurrencies. India banned all cryptocurrency transactions in the country until the Supreme Court of India lifted the ban in March 2020.
Although many Vietnamese investors are making big profits from cryptocurrencies, investing in Bitcoin or other cryptocurrencies is risky. Therefore, investors should be careful before deciding to enter this harsh market.
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