Cryptocurrency investors made a profit of $ 162.7 billion in 2021, according to a StockApps report. The report states that cryptocurrency profits were about $ 32.5 billion a year ago, resulting in a 400% increase in profits from 2020. The United States had the highest annual profits, raising about $ 47 billion, followed by countries such as the United Kingdom, Germany, and Japan.
Insights from the report said cryptocurrencies Bitcoin and Ether accounted for 93% of the profits made in 2021. Bitcoin earned $ 74.7 billion, while Ether made a profit of $ 76.3 billion. Demand for the blockchain protocols Ethereum and Bitcoin increased in 2021. Due to the number of protocols present on the Ethereum network, the adoption of decentralized finance (DeFi) systems has increased the demand for Ethereum.
According to the data in the report, China’s ban on cryptocurrencies, especially mining activities, has led to a mass outflow of cryptocurrencies from China. China’s low growth rate was due to crackdowns on cryptocurrencies. Despite believing that Bitcoin and other cryptocurrencies can lead to financial instability, China has no negative outlook for cryptocurrencies. The country is working on building a virtual version of the RMB in its currency.
Cash-based transactions have declined as digital currencies are expected to overtake Fiat currency. South Africa joined the list of the top 50 countries in 2021 to make a profit on cryptocurrencies, generating $ 827.6 million in realized profits, accounting for 0.51% of total realized profits.
(With insights from the StockApps report)