Despite the negative comments related to Bitcoin and its performance, there are some positive things about it that are worth mentioning. Data Scientist Matt Ahlborg published a paper in which he addresses the question of whether Bitcoin reached global penetration. Apparently, the popular digital asset achieved a part of Satoshi’s vision.
Bitcoin Expanded Globally
Although there are many issues affecting Bitcoin and the whole crypto market, Ahlborg believes that the digital asset working as Satoshi intended. In order to back his assumption, he used trading volumes and data from LocalBitcoins.com.
According to his research, it is possible to see that regions such as Latin America and Africa are registering larger trading volumes than in the past. In North America and Europe, adoption started much time before than in developing economies, but they are now being surpassed by other countries.
The expert uses a metric that quantifies and analyzes the degree of Bitcoin adoption around the world. The metric is Usage per (Online) Economic-Person UP(O)EP. This formula takes into account the volume in Bitcoin, the equivalent USD price on the day of trade, the internet penetration of a specific country, the population of this nation and the GDP PPP per Capital the country has.
As per the report, the UP(O)EP levels increased in countries with lower economic freedom. These countries have also imposed their citizens financial and monetary restrictions. Some of these countries are China, Zimbabwe or Venezuela. Nevertheless, there some countries such as Turkey or India that were not able to adopt virtual currencies as other similar economies.
As mentioned before, the research shows that the wide use of virtual currencies in developed countries stalled during the last years. Meanwhile, developing economies have seen an increase in the use of virtual currencies. Some other countries are Colombia, Panama, Chile, Argentina, Belarus, Kazakhstan, Egypt, Japan, Sudan and Afghanistan.
On the matter, the expert wrote:
“There are many, many compelling stories that this animation sheds light on: the political and economic crisis in Venezuela, Russia invading Crimea and the corresponding international sanctions, China ‘banning’ Bitcoin periodically, Kenya and its M-Pesa revolution, South Africa and the MMM Ponzi scheme, Sakawa and the lack of Paypal in Wes Africa, and Panama and its status as an offshore financial center.”
A few days ago we wrote at UseTheBitcoin that Argentinians are not able to purchase their bus tickets using Bitcoin. In Venezuela and Zimbabwe, many economic transactions are processed using Bitcoin and other virtual currencies.