The supply of bitcoin (BTC) in Asia reached an all-time high (ATH), accounting for 7.3% of all bitcoin supplies, while the supply of bitcoin reserves in the United States and the European Union was negative year-on-year.

Asian market

The figure below shows the scale of Bitcoin supply in Asia since 2010. Except for the short periods of 2016-2017 and 2020, the region has been struggling with a negative supply level.

Asia's Bitcoin reserves began to exceed zero at the beginning of this year and reached ATH by November. The region currently holds 7.3% of the total supply of Bitcoin, equivalent to 1402330 Bitcoins.

US and EU

Although Asia has been accumulating Bitcoin, the EU and the United States have been losing Bitcoin.

european union

The figure below shows the growth of EU Bitcoin reserves since the beginning of 2010. Although the region, like Asia, also faces sub zero supply levels, its performance will be relatively good until the end of 2019.

The EU's Bitcoin reserve hit ATH at the end of 2018, accounting for nearly 6.25% of the total supply. However, this proportion will drop to negative 2.5% in the middle of 2019 and to negative 5% in 2020. The EU reserves will recover to zero by the middle of 2020, and will fall back to negative 5% by the middle of 2021. At present, it is on the track of recovery, but it remains at about negative 1.25%.

U.S.A

Unlike Asia and the European Union, the United States' Bitcoin reserves are deteriorating. It can also be seen from the chart below that during the period from 2010 to 2016, Bitcoin reserves in the United States were above zero for most of the time.

After falling below zero at the beginning of 2016, it was difficult to increase to a positive value until the end of 2020. However, even if it recovers to above zero in 2021, the supply of Bitcoin in the United States has been shrinking.

In 2011, the supply of Bitcoin in America of ATH set a record, accounting for nearly 30% of the total supply. However, the United States failed to maintain the positive supply level that it recovered in 2021 and fell below zero in early 2022. At present, Bitcoin reserves in the United States account for almost negative 8% of all Bitcoin supplies.

Asian password

Recent research has turned its attention to Asia, focusing on the growing encryption applications in the region. A Research on HSBC and KPMG disclosed that one quarter of the 6472 start-ups operating in the region are encryption related enterprises. Another report also concluded from July 2022 that the Asia Pacific region is expected to adopt large-scale encryption.

Major countries in the region also support these findings and take significant measures to further increase the use of encryption.

Japan has decided to further increase the adoption rate and soften the regulatory obligations and tax burden through the following ways, and constitute better KYC rules and precautions for money laundering to create a healthy environment for investors. In addition, the country has been practicing digital currency (CBDC) and virtual space with the central bank to improve the adoption rate.

On the other hand, China may still oppose encryption, but Hong Kong's recent move has made the community question whether China is willing to use Hong Kong to promote the password market.

In July 2022, the Hong Kong Monetary Authority said that encryption is likely to be combined with traditional finance. Hong Kong has also been preparing CBDCs and issuing policy statements regulating the use of encryption for the future.

Singapore has become another encryption center in the region. The country has been password friendly for many years, and has established a strong foundation of password companies and enthusiasts. Although it decided to tighten its password related rules, the United States is still one of the largest encryption centers in the world with the three arrow capital. Similar to Japan and Hong Kong, Singapore also participates in CBDC and virtual space projects while enhancing procedures to promote the application of encryption technology.

In addition to these countries, Vietnam, the Philippines, India, Pakistan and Thailand are also among the top ten countries in the chain analysis of the latest adoption report. In addition, Vietnam and the Philippines have become the first and second largest encryption adaptive countries.