A picture to understand: how digital currency is accepted globally

Turkey is the country with the highest proportion of digital currency in the world, and Japan is at the bottom of the accident.

This week, bitcoin prices have returned to $9,000, while risk-advantaged investors have entered the market, while others are using it as a safe-haven asset.

According to the research firm Statista, Turkey is the country with the highest proportion of digital currency in the world, and 20% of the Turks in the sample said they used or are holding digital currency. Furthermore, the use of digital coins throughout Latin America is high, with Brazil and Colombia tied for second place.

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Source: Statista, Cartography: Wall Street

At the same time, the popularity of digital currency in developed countries is much lower than that of the above countries. Bitcoin may have been born in the hands of a Japanese, but the application of digital currency is definitely not popular in Japan. Among the recorded countries, Japan has the lowest percentage of people using digital currency, only 3%.

The reasons for the wide application of Bitcoin in Latin America and Eastern Europe may be closely related to the high instability of the local financial market. The Wall Street Journal pointed out that in some frontier markets – small and underdeveloped emerging market countries – bitcoin prices are usually higher than in other regions, and problems faced by local currencies have given rise to the prosperity of the digital currency market.

In Turkey, for example, the Turkish lira exchange rate has once again experienced a sharp depreciation this year, with a margin of nearly 10%. As of the end of May, the country's economic confidence index fell by 8.5% from the previous month, the lowest level since the easing of the Turkish currency crisis in October last year, and the domestic inflation rate is close to 20%.

Turkey's inflation rate changes

Last week, rating agency Moody's downgraded Turkey's sovereign credit rating to B1, and the outlook remains negative. In order to “self-help” before the situation worsens, the Turks have been stocking digital currencies to hedge their risks, and digital currencies seem to be safer than any foreign currency.

In countries such as Brazil, Argentina, and South Africa, the situation is similar to Turkey. The Argentine peso against the US dollar fell to a new low in April this year, and the plan originally funded by the IMF to support the Argentine economy may also be ruined at the end of this year.

As of now, the price of Bitcoin is 9,925.75 US dollars, and the increase has exceeded 140% so far this year. Different from the last big increase, this round of rising stocks has increased the trading volume of the exchange. It is also worth noting that Bitcoin is about to usher in a new round of supply halving in 2020. Many analysts expect that bitcoin prices will exceed $10,000 during the year.

Author: High Rui Shu

Source: Shallot blockchain

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