Mapping the Global Growth
To understand the impact that cryptocurrencies are having across the world, it helps to visually map the growth of cryptocurrencies. But, due to the nature of blockchain technology (privacy, pseudonymity etc), that is a somewhat difficult task. Thanks to measuring the freedom of crypto and the statistical presence in each country, we can make a rough guess as to how far these coins have come.
The infographic below, created by ForexNewsNow, illustrates the cryptocurrency heat-map of the world. It shows crypto regulation, exchange density, number of cryptocurrency ATMs, and the mining-power of countries across the world.
Thanks to the map's info, we can determine the consumers, producers and new players in the global growth of crypto.
To skip straight to the infographic, please click here!
Crypto Regulation and Taxation
As far as cryptocurrency regulation in New Zealand goes, we’re pretty much on the fence. It’s currently treated as property for tax purposes. BitPrime published a series of articles covering factors including effects of trading versus hodling, non-taxable gains etc which I recommend reading. These articles were authored by one of New Zealand’s crypto tax experts, Tim Doyle of AgBiz Accountants. Additionally, a report published by the NZ Law Foundation in late 2018 covers regulation recommendations for our government to consider. We discuss these recommendations in this opinion piece.
Other countries appear leagues ahead, already having legalised digital assets, regulated exchanges, and generally being “friendly” towards the industry. The table below compiles information from The Library of Congress on those countries considered current global leaders in regulation. Ultimately, it’s my hope to add New Zealand to this list soon.
As of early May 2018, there are over 4,700 cryptocurrency ATMs installed worldwide. Perhaps not surprisingly, the vast majority (almost 80%) of crypto ATMs are found in North America. Of the 4,700+, New Zealand boasts two! One in Dunedin at Dunedin security Locksmiths, and the other in Auckland at The Dogs Bollix. The Dunedin ATM supports bitcoin (BTC), with the Auckland ATM supporting bitcoin (BTC), Litecoin (LTC) and Zcash (ZEC).
Have you used one of these ATMs before? Let us know what you thought of it in the comments below!
As far as manufacturing these ATMs goes, there are almost 50 companies on board. Two companies, in particular, General Bytes and Genesis Coin, have manufactured over 60% of all currently installed crypto ATMs.
Proof of Work coins such as bitcoin are produced through “mining” which involves solving computationally difficult cryptographic puzzles. Mining has been recorded in 114 different countries to varying degrees.
Technically, anyone with the equipment and know-how can mine coins. However, due to the costs associated with the hardware and electricity needed, it’s becoming increasingly harder for individuals to profit. Industrial competition for the necessary hash power has led to the development of enormous mining farms and mining pools.
The total profitability of the mining industry is in the billions since its inception in 2009. In fact, the revenue for miners on March 5th, 2019 was over USD9.5 million on that day alone.
Crypto Search Volume
Interest in cryptocurrency related searches on Google peaked in January 2018, coinciding with the price bubble experienced at the same time. New Zealand ranks as the 72nd most interested country out of 196, with Tasman region as number one (Google Trends).
The Growth of Cryptocurrencies
Disclaimer: The above references an opinion and is for informational purposes only. Do not take this as personalised financial or investment advice. The opinions expressed by the author do not represent the opinion of BitPrime.
Last updated: 09/05/2019