Data What is the crypto market like outside of the United States?

What is the global crypto market like?

Whether the United States has encrypted users or not is not important.

Original author: Mitchell Hammer

Translation: 0xAyA

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Editor’s note: Mitchell Hammer, an analyst at VC Electric Capital, shared the current situation of the non-U.S. encryption market on Twitter, expressed optimism about its future, and expressed dissatisfaction with the implementation and legislation of U.S. domestic encryption policies. The following is a compilation of the highlights by Odaily Star Daily.

The United States still maintains a wait-and-see attitude towards cryptocurrency. But policy makers in other parts of the world are no longer sitting on the sidelines. Non-U.S. policy makers are embracing cryptocurrency, and non-U.S. consumers are using cryptocurrency. Let’s take a closer look:

In the past six months, policy makers around the world have accepted the existence of cryptocurrency:

• The European Union has approved MiCA

• The UK has passed a new encryption law

• Hong Kong is approving cryptocurrency exchange licenses

• Dubai has established a cryptocurrency regulatory agency

• Brazil has created a virtual service provider license

• Japan hopes to become a cryptocurrency center

Together, these six jurisdictions have more than 850 million consumers. Their combined GDP exceeds $23 trillion, and these countries see cryptocurrency as a major potential economic driver. They hope to share the millions of job opportunities and trillions of dollars in value created by cryptocurrency.

Meanwhile, cryptocurrency-friendly policies outside the United States have already had an impact, and non-U.S. regions are seizing the cryptocurrency development market share of the United States. Over the past 5 years, the U.S. development market share has lost about 30% to Asia, Africa, and Latin America.

I can’t help but wonder, can the cryptocurrency industry really develop so big without the U.S. market? However, the fact is that the United States now only accounts for a small portion of the cryptocurrency user base:

• 90% of the 420 million cryptocurrency users live outside the United States

• 80% of the cryptocurrency volume comes from outside the United States

• Binance, the largest global CEX, has almost no U.S. customers

Crypto already has a product market suitable for non-U.S. consumers. Many of them cannot obtain stable fiat currency, they cannot access basic and affordable financial services, they use stablecoins to obtain dollars, and they use DeFi for trading, lending, and earning profits.

Cryptocurrencies will not be the first technology to surpass the United States in global adoption. Mobile payments and QR codes have already covered billions of users and trillions of dollars in transactions without the involvement of American consumers. Even today, the adoption in the United States still lags behind.

Despite the near-zero adoption by American consumers, Tencent has still turned WeChat Pay into a $25 billion business, while Ant Group, the parent company of Alipay, is valued at $80 billion.

The existing infrastructure makes it difficult for American consumers to see the practicality of new payment systems. Most Americans have credit cards. The existing payment systems are already good enough, but eventually, the United States adopted this new technology of mobile payments. Within the past 6 years, mobile payments in the United States have grown by over 500%.

Just like mobile payments and QR codes, cryptocurrencies can cover billions of users and create trillions of value without the involvement of American consumers. Once this happens, the United States will surrender again, and local participants will need to adapt to the use of cheap and more efficient cryptocurrency systems to keep up with global competitors.

In the end, the political war on cryptocurrencies has harmed American consumers and businesses. Currently, American consumers cannot use products that are available in other parts of the world. Businesses cannot use cryptocurrencies to maintain global competitiveness.

Fortunately, recent judicial and congressional actions seem to indicate that the United States is slowly moving in the right direction. This is undoubtedly good news, but regardless of what happens in the United States in the near future, cryptocurrencies are global… and they will continue to be so.

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