During the calendar year 2021, Pakistani investors profited from cryptocurrency to the tune of $604 million. While the profits appear to be substantial, they are the least of all of the countries covered by Chainalysis. Globally, realized crypto earnings totaled more than $163 billion, with US investors accounting for roughly $47 billion.
Pakistanis’ profits were virtually evenly split between Bitcoin and Ethereum. This is in line with recent trends, when the two flagship currencies accounted for more than 60% of total trade volume.
The rest was made up of altcoins and stablecoins, which had no impact on the returns.
Pakistanis invested extensively in cryptocurrency last year, according to analytics firm Chainalysis, with scores of individuals pocketing over $604.5 million.
This equates to more than Rs. 98 billion in total profits gained during the period under consideration, based on the average digital exchange rate.
According to more data from Chainalysis, Pakistan was ranked third in the Global Crypto Adoption Index. Pakistanis apparently held more than $20 billion in virtual/crypto assets between July 2020 and June 2021.
The value of cryptocurrencies received by Pakistan in FY21 was represented by this number. This figure caused quite a stir among economists and experts since many people mistaken it for actual assets.
Regulators were concerned at the time that growing crypto trading could lead to dollar outflows and deplete FX reserves.
As a result, a group led by State Bank of Pakistan (SBP) and other officials proposed that cryptocurrencies be banned in the country.
However, it appears that this hasn’t stopped Pakistanis from adopting Web 3.0, the third generation of the global web built on decentralized technology like blockchain and peer-to-peer networks, among other things.
In 2021, crypto investors made a total profit of $162.7 billion, compared to just $32.5 billion in 2020.
With an estimated $47.0 billion in realized bitcoin gains, the United States leads by a considerable margin, followed by the United Kingdom, Germany, Japan, and China.
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