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The year 2021 turned fruitful for cryptocurrency investors as they garnered nearly $163 billion in profits recording a five-fold jump compared to the previous year. US, Germany, and the United Kingdom investors were the top three highest profit earners in cryptocurrencies, while Bitcoin and Ethereum accounted for more than 90% of the profits in the market.
As per the StockApps report, crypto investors made $162.7 billion in profits in 2021. This significant amount of profit represented an increase of nearly 400% from 2020. In the previous year, Crypto didn’t perform well, earning a paltry $32.5 billion.
In 2021, the United States investors made the highest profits followed by Germany and the UK.
On the data, StockApps.com Edith Reads had this to say. “The market favored the US. Out of the total profits, it collected approximately $47 billion. Thus accounting for close to 30%."
Edith further pointed out that the United Kingdom, Germany, and Japan followed in that order. He noted that China had issues hence low profits.
"China had a lot of disappointing moments. The outlawing of bitcoin mining and crypto trading platforms was a huge hindrance. Thus, it casts doubt on the viability of investing in cryptocurrencies," Edith said.
Data pointed out China’s ban on cryptos, particularly concerning mining activity in that country. The ban led to a mass exodus of crypto mining firms out of China. So, they switched their operations to jurisdictions with more favorable regulatory environments.
China believes that bitcoin and other cryptos could lead to financial instability. They see the lack of stringent restrictions as a loophole. Yet, China does not hold an utterly negative view of virtual currencies. The country is working on developing a virtual version of the yuan, which is its national currency, the report pointed out.
Further, the data showed that South Africa made it to 50, with $827.6 million in realized gains. This accounts for 0.51 percent of overall realized gains. Nonetheless, the statistics did not mention Nigeria.
In terms of cryptocurrencies, the research highlighted that bitcoin and Ether accounted for most of the gains to the tune of 93%. The report showed that Ether had more significant gains than bitcoin, with $76.3 billion versus $74.7 billion.
The data shows that the demand for Ethereum and BTC rose in 2021. Ethereum rose due to the adoption of DeFi systems since most of the protocols exist on Ethereum networks.
