Every investor wants to know where the best country for storing their crypto-asset is. To become a top choice, such a country not only needs to have a friendly political environment with low taxes, pro-business, high technological opportunities to grow, high coding literacy, financial strong support, and many other possible favors.
As many articles listed many locations to be the candidates of crypto heavens, I want to show some additional information that further screening out the potential candidates in 2021.
Factors of determination
Beyond political, technology, and economic factors, there are also environmental, social, psychological, and legal factors.
Of course, there will be other factors that may not fit into any of the categories above that I will include in others.
Political factors
It is a factor that the political system in the nation supports or is against cryptocurrency and blockchain technology. It is about political tolerance on how cryptocurrency can co-existing with fiat currency or be completely banned from the nation.
Technology factors
It is not limited to broadband speed but also potential technology innovation and research that can help blockchain technology breakthrough. Also, security researchers need to develop faster to resist potential quantum technology breakthroughs.
Economic factors
It is not limited to a friendly business environment but also central bank fiat currency regulations. Another potential issue is the crypto mining industry that integrates into the current economy to help nations advance their blockchain technology.
Environmental factors
It is a concern of environmental sustainability that crypto mining energy will likely adopt renewable energy rather than the energy that will contribute to global warming.
Social factors
It is a factor of how crypto is acceptable in society and how such adoption can benefit citizens. Also, such crypto adoption can further impact society so that crypto can help fund social programs that contribute to society.
Psychological factors
It is a factor that depends on national past history toward crypto of any kind. It also depends on how citizens openly accept crypto.
Legal factors
A possible legal tender path for crypto in the future. Regulations that may prevent crypto adoption or any prohibition to possess crypto as any assets.
Other factors
Any other factors that I may miss in the above will be included here.
Measurement method
Each factor will have 5 points of a total of 35 and includes 1 additional point for other factors.
Let’s examine the top 5 potential candidates from the internet picked and some other current trending nations.
Here are the top 5 lists:
-Japan
-Switzerland
-Singapore
-Germany
-Malta
Plus two popular lists from the recent news:
-Vietnam
-El Salvador
Here are data and chart:
Japan
Japan definitely will make it into the top 5 because of its history of Bitcoin with the earliest crypto exchange in the world and they gradually legalized crypto exchange platforms.
Switzerland
Switzerland has a strong fiat currency banking system that may drag down cryptocurrency adoption. However, cryptocurrency can play an alternative path to support fiat currency shortfall.
Singapore
I believe that Singapore has the most strong position in the world with its technology infrastructure ready and legal system ready. Also, its political environment is always neutral that makes it one of the best places for crypto to flourish.
Germany
No to mention that Germany is catching up with its crypto adoption. Its technology-driven society can help blockchain to breakthrough. Also, its advantage of implementing blockchain applications in a different field may create new opportunities for crypto to utilize in a different way.
Malta
The benefit of Malta is a low tax environment. However, a lack of technology-driven may only limited crypto as a functional currency.
Vietnam
I consider Vietnam because it is so closed to China which makes it an alternative way for the Chinese to migrate their crypto to Vietnam in a short period of time. Also, its crypto fast adoption pushes the country to move forward with crypto. Although its political environment and its fiat currency domination may limit crypto to move at full speed.
El Salvador
The county is moving Bitcoin to become legal tender. However, because of its political environment, Bitcoin may be just another way for its central bank to control and act like a large node rather than a decentralized economy.
In conclusion
I hope this article gives you some insight into how I measure each country and you may also want to try and see how you rate each country as I am biased in my own opinion.
Photo by Marjan Blan | @marjanblan on Unsplash
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Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational
