According to a recent report, Turkey recorded the highest growth in crypto ownership from 2021 to 2022. Reportedly the crypto ownership in Turkey has marked a splendid 27.1% increase from July-September 2021 to July-September 2022.
In a recent report published by GWI research, Turkey was marked as the country with the highest crypto adoption followed by Argentina and the Philippines at the second and third places of increase in crypto ownership rate. Argentina and the Philippines have recorded 23.5% and 23.4% increases respectively.
Sources reveal that the study includes individuals between the ages of 16 and 64 and examines if they own some form of cryptocurrency. The chart below demonstrates the top 15 countries that recorded the highest surges in crypto ownership and the global average for the period, which is an 11.9% increase.
Notably, even though Turkey appears at the top of the chart, the United Arab Emirates, Vietnam, and Portugal also recorded strong growth during the specified phase. Sources reveal that even though the report doesn’t disclose a reason behind the surges in crypto ownership, the top three countries share a common feature: skyrocketing inflation.
As per economic data, in late 2021, Turkish Lira quickly lost 44% of its value against the US dollar. The country’s inflation surpassed 30% in early 2022 and ended the year at 72.31%. These factors motivated the Turks to turn to crypto, and the daily trading volume reached an average of $1.8 billion.
During the time, a Turkish economist and journalist Erkan Oz claimed that the acceptance of cryptocurrencies had not yet fully translated to blockchain startups or projects. He attributed the adoption rates of crypto to the hyper-inflationary situation in the country, thereby implying that people use crypto as an inflation hedge as reported by Todayq News.
Similarly, Argentina’s inflation rate was 94.8% in 2022, the highest percentage since 1991. The decreasing value of the Argentine Peso is anticipated to have pushed the citizens to adopt crypto as it did in Turkey. The country proved its interest in crypto when a Bitcoin wallet became the number one application in Argentina within a week of its launch.
Additionally, the Argentine voters have risen in support of a pro-crypto candidate as their election nears. Javier Milei, a libertarian economist and pro-Bitcoin presidential candidate has unconventional views that make him stand out as the candidate capable of solving one of the country’s many problems at the moment.
Notably, the situation is the same for the Philippines. As the country’s inflation sat at 8.1% in December 2022, which reflects a 107% increase from the 3.9% recorded in 2021, citizens favorably turned to cryptocurrencies. Keeping the increasing interest in the picture, the Philippines regulator has laid out strict rules and guidelines for companies in the region to adhere to.