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The U.S. Investors took in profits of an estimated $4.1 billion in Bitcoin profits as the price of the cryptocurrency soared to $29,000 from under $10,000, according to data by blockchain research company Chainalysis. While cryptocurrency profits can be hard to track due to the nature of its anonymity, Chainalysis has produced its estimate by collecting data including deposits, withdrawals, and web traffic from cryptocurrency exchanges.
The U.S. Investors Made $4 Billion in Bitcoin Profits in 2020
Profits raked in by the U.S. investors were four times more than those in China who earned around $1.1 billion (in profits) during the year followed by Japan coming in third with $900 million, while the United Kingdom at $800 million and Russia with $600 million.
“US-focused exchanges saw huge inflows in 2020 that appear to have been realized toward the end of the year, which likely accounts for the country’s large gains,” Chainalysis report said.
Remarking on the U.S. surpassing China in Bitcoin profits, Chainalysis said:
“This may seem surprising considering that China historically has by far the highest raw cryptocurrency transaction volume, but U.S.-focused exchanges saw huge inflows in 2020 that appear to have been realized toward the end of the year.”
It is to be noted that the data was derived from only realized gains indicating that profits held in cryptocurrencies or in exchange accounts are not included.
Bitcoin Attractive in Emerging Markets
At the same time, other countries that brought huge gains from Bitcoin last year includes Germany and France with roughly $600 million each with Spain at $500 million including South Korea, Ukraine, the Netherlands, Canada, and Vietnam all bringing $400 million in profit.
On the other hand, emerging countries such as Vietnam, Turkey, and the Czech Republic were also among the top 25 while India underperformed in Bitcoin gains, due to the country’s regulatory uncertainty around Bitcoin, Chainalysis suggested:
“The data suggests that Bitcoin has given investors in emerging markets access to a high-performing assets, the likes of which they may not have otherwise had access to. On the other side of the coin, it also suggests that countries attempting to limit cryptocurrency usage through harsh regulations are preventing their citizens from taking advantage of the opportunity.”