A new list attempting to rank global crypto hubs for 2023 faces challenges such as boundary definitions, criteria selection, and data scarcity. The diverse possibilities of what could constitute a hub adds to the complexity. To overcome these questions, the team behind the ranking reached out to dozens of crypto experts and created a sample of 25 hubs for data collection. Their methodology uses three primary categories: Drivers of Crypto Growth, Base Enablers, and Crypto Network & Opportunities.
Opinions on the best approach for ranking crypto hubs vary significantly among experts. One essential aspect for a hub is the local regulatory environment. Although some locations such as Hong Kong, Dubai, and parts of Europe are creating proactive regulations, others like the US struggle with enforcement. The absence of a single reliable source offering a comprehensive ranking led the team to create an original scoring system.
Another crucial factor is the level of grassroots, retail adoption of cryptocurrencies. The Chainalysis Crypto Adoption Index uses data from on-chain cryptocurrency value received, on-chain retail value transferred, and peer-to-peer exchange trading volume to rank countries. This decentralized view of adoption helps determine which hubs have the highest interest and potential.
The ranking also considers general factors like quality of life, digital infrastructure, and ease of doing business. Numbeo’s quality of life index is used to gather expat opinions on lifestyle metrics such as living costs, pollution, healthcare, and safety. The Digital Intelligence Index from Tufts University assesses the vibrancy and ubiquity of the digital economy. The World Bank’s Ease of Doing Business ranking evaluates 190 countries in terms of local business regulations.
Lastly, the ranking looks at regional career and networking opportunities. The vibrancy of the local crypto ecosystem is gauged by analyzing job postings on LinkedIn, profiles of local companies using keywords like “crypto,” “Web3,” or “blockchain,” and the number of related events listed on Eventbrite and Meetup platforms.
The authors of the ranking acknowledge their methodologies’ limitations, including data availability and potential cultural and language biases. They expect robust discussions about the results and their approach, inviting feedback from policymakers and those in the crypto ecosystem seeking the best places to establish roots actively.
Source: Coindesk
