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A recent research by the Mosaic research team suggests that the Asian region does not get enough recognition for the vital role it plays in the global cryptocurrency ecosystem.
Due to the erroneous view from major cryptocurrency headlines, nine of ten people will argue that European countries and the United States are in control of the wheels in the crypto verse, especially in terms of influencing cryptocurrency prices. This can’t be further from the truth as the report from the research shows that Asia is, in fact, in the driver’s seat in the global crypto sphere.
The Mosaic research team conducted extensive research on the impact of major events from Asian countries such as Korea, Japan, and China over a period of nine years (from 2009 to 2018). The result from the research shows that a total of eleven major events from Asian countries have had a significant effect on Bitcoin price movements both negatively and positively. These events are responsible for about 18.61% price change – both negatively and positively – within 10 days from their release date. These events have caused a change as high as -57.52% and as low as 0.51% in the Bitcoin price movements. These are indeed significant effects as the average daily volatility of Bitcoin over a period of 252 days is usually 5.34%.
Besides being a key player in the Bitcoin price movement, the research also showed that Asia dominates the global crypto sphere. According to the study, 40 of the 86 cryptocurrency exchanges that listed Bitcoin as of July 2018, are incorporated in the Asian region. Following the ban of fiat-to-crypto exchanges in Mainland China, Japan, Singapore, and Hong Kong are currently the most popular Asian destination for cryptocurrency exchange corporations. The study further proved the vital role of the Asian region by stating that 20 of the 37 crypto exchanges created in 2017 were registered in Asian countries.
A close look at the 86 known exchanges across the globe showed that Asian countries are the most targeted audience of these exchanges irrespective of their location on the map of the world. The Mosaic research team found that 9 of the 29 languages listed across these exchanges are Asian languages such as Cantonese, Malay, Mandarin, Japanese, Indonesian, Thai, Korean, Vietnamese, and Hindi. Although English is the major language provided by these exchanges, Mandarin (an Asian language) was commonly listed as the default or secondary language.
Shedding some light on crypto mining activities, the study showed that about two-third of the global hashrate comes from crypto firms in Asian countries, especially in China. The study also stated further that 11 of the 17 largest mining pools distributed by Hashrate are located in the Asia region.
These facts leave behind no doubt that Asia is a key player in the global crypto ecosystem, perhaps even the most influential one.