Recent analyses indicate a significant positive correlation between rising inflation rates and increased crypto adoption worldwide. Countries experiencing high inflation are witnessing a surge in crypto usage as individuals seek alternatives to devaluing national currencies.
Data compiled from Trading Economics show that nations like Argentina, Turkey, and Venezuela, which face inflation rates of 237%, 49.38%, and 25.75%, respectively, have crypto ownership rates of 9.73%, 5.62%, and 10.30%. In contrast, countries with low inflation rates, such as Japan (3% inflation, 4.13% crypto ownership) and Switzerland (0.8% inflation, 2.02% crypto ownership), exhibit lower crypto adoption.
An analysis of the correlation between inflation rates and crypto ownership percentages yields a Pearson correlation coefficient of approximately 0.68, indicating a strong positive relationship. This suggests that as inflation rises, so does the rate of crypto adoption.
| Country | Inflation Rate (%) | Crypto Ownership (%) |
|---|---|---|
| Argentina | 237 | 9.73 |
| Turkey | 49.38 | 5.62 |
| Venezuela | 25.75 | 10.30 |
| Nigeria | 32.15 | 5.93 |
| Japan | 3 | 4.13 |
| Switzerland | 0.8 | 2.02 |
| Australia | 3.8 | 2.75 |
Inflation vs. Political Unrest
While political unrest has been considered a factor influencing crypto adoption, its impact appears less significant when inflation is accounted for. While there is a correlation in some regions when reviewing fatalities linked to political violence, the data is not globally consistent enough to identify a clear trend.
High Crypto Adoption & High Fatalities per Million
- Ukraine: 10.57% crypto adoption; 1,618.80 fatalities per million.
- Lebanon: 2.48% crypto adoption; 238.18 fatalities per million.
- Somalia: 1.94% crypto adoption; 289.13 fatalities per million.
High Crypto Adoption & Low Fatalities per Million
- Vietnam: 21.19% crypto adoption; 0.02 fatalities per million.
- United States: 15.56% crypto adoption; 0.11 fatalities per million.
- Philippines: 13.43% crypto adoption; 6.00 fatalities per million.
Low Crypto Adoption & High Fatalities per Million
- Cameroon: 1.68% crypto adoption; 78.16 fatalities per million.
- Ethiopia: 1.79% crypto adoption; 73.10 fatalities per million.
Average Crypto Ownership
- Countries with High Fatalities per Million (>50): Average crypto adoption is approximately 3.38%.
- Countries with Low Fatalities per Million (<1): Average crypto adoption is approximately 4.34%.
However, countries with higher individual instances of political unrest (including attacks…
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