Did cryptocurrencies stir up riots in Kazakhstan? Anyway, Europe has become the world capital of virtual currencies

By Edwig Ban
Many independent observers believe that the crypto mines in Kazakhstan have, among other causes, been at the root of the riots in these days. The former Soviet republic had become the world’s largest producer of cryptocurrencies, with many relocated mines in China and the United States benefiting from cheap energy consumption. But they ended up destroying the economy.
Another example, closer to us, is Kosovo, a territory detached from Serbia a few years ago. The local government, which is suffering from an electricity crisis, has banned the mining of cryptocurrencies in the country in order to reduce electricity consumption. In Kosovo, many young people have started to exploit cryptocurrencies in recent years, partly because of cheap electricity and partly because the country has a very high unemployment rate and so young people could earn a living.
On the other hand, analysts point out that Europe is now the world capital of cryptocurrency, as China’s Bitcoin bans can find a solution on the old continent.
Europe is now the world’s largest cryptocurrency economy, with the continent receiving more than € 870 billion in cryptocurrencies in the last year.
Central, Northern, and Western European countries accounted for 25% of all global cryptocurrency activity, a new analysis by blockchain data firm Chainalysis found.
The United Kingdom had the largest volume of cryptocurrency trading in the CNWE region, at around € 145 billion. The United Kingdom was followed by France, Germany, the Netherlands, and Spain.
According to Chainalysis, Europe’s growth in the cryptocurrency market has been largely driven by so-called “whales”, large institutional investors who trade huge amounts of cryptocurrencies.
“Europe’s cryptocurrency economy started to grow faster in July 2020. There has been a huge increase in large transactions, with an institutional size, ie transfers of over $ 10 million (8.5 million euros) in cryptocurrencies.” shows in the Chainalysis report.
According to the report, most large institutional transactions in Europe went to DeFi or “decentralized financing” platforms.
DeFi platforms have been accepted by large investors because they offer ways to bet on cryptocurrencies, essentially allowing long-term holders to earn money from interest payments by borrowing their DeFi protocols.