The crypto industry is full of diversity. When it comes to tokens, we have Bitcoin at the top of the pyramid as the most popular and financially viable crypto. At the same time, there is an endless supply of other tokens called altcoins that also deliver healthy returns. As Hyunsoo Kim writes, an altcoin can be one of the most popular options for new and existing crypto investors.
But even as people embrace cryptocurrency, this is not at an even rate around the world. Specifically, the crypto industry is focused on Western countries as well as Asia. But how does crypto use in the former stand up to the latter?
Number of Users
When we compare the number of users, it is clear that Asia has a massive advantage. In the United States, for example, crypto users are estimated to be between 16 and 65 million. In Canada, the estimated number of crypto users is 4 million, while the United Kingdom has about 7 million. While these are impressive numbers, they pale in comparison to Asia. Some reports state that up to 268 million people in Asia use cryptocurrency, making it one of the biggest hubs of crypto use.
Obviously, this can be put down to the population advantage that Asia enjoys. While the United States has a large population, several Asian countries have embraced crypto. A look at the Chainalysis crypto adoption index for 2024 will show India at the top of the list. It is also worth noting that India has a very high population, many of whom are young. While the US remains one of the big powerhouses of the crypto sector in terms of companies operating there and its status as a world power, Asia can leverage its population.
Use Cases
Another notable difference between crypto use in the West versus Asia is the ways that the tokens are being used. In the West, there is a notable use of cryptocurrency as a profit-making venture. From speculative trading to token mining to staking, crypto generally is seen as a way to earn a profit. In Asia, there is a big emphasis on crypto as a means of remittance. A look at remittance rates around the world will show that Asia is one of the biggest hubs for this activity.
Citizens living abroad and sending money back to family can leverage tokens like XRP to do so quicker and cheaper. There is also the use of cryptocurrency for things like gambling. Some Asian countries have very strict gambling laws and some citizens turn to offshore sites to gamble with crypto. Asia also has a growing use of cryptocurrency for payment of goods and services. While it is possible to spend cryptocurrency for goods and services in the West, Asia especially has been very prominent in this regard.
At the same time, crypto is being used in Asia to earn money as well, and this is evidenced by the boom of play-to-earn games in the country last year. Many point to the existence of developing nations in Asia as a reason for these use cases.
Another notable use case in Asia is as a store of wealth. Several reports suggest that wealthy Asians are turning towards cryptocurrency to not only hedge against inflation but also to secure their assets long-term. In Hong Kong, for example, tax breaks have been proposed for cryptocurrency use to attract wealthy investors and families. Investment offices that serve the super-wealthy have noted an increased uptake in cryptocurrency use and this suggests that the asset class is especially appealing to Asian investors. Wealthy individuals and families in the West certainly investing crypto but Asia seems to have a specific appetite for the asset class. This appetite triggers increased investment in the region which might benefit even everyday investors.
How Things May Change Moving Forward
While Asia likely has more crypto investors overall, Western countries like the United States continue to lead as centers for crypto-related activity. With the Trump administration being very enthusiastic about promoting crypto use, even installing a pro-crypto candidate in the Securities and Exchange Commission, this is likely going to continue. At the same time, we may see more varied use of crypto within the United States and maybe less of an emphasis on pure profit-taking. Asia, on the other hand, is leading with many pro-crypto regulations and a variety of use cases are the public has clearly taken well to. Given that its exploration of crypto is only going to continue and its population will only grow, it could very well give the US a run for its money. Over the next few years, we should see which region will come out on top.