Market analysis of cryptocurrency classified ads

The US leads cryptocurrency classified ads: a global market analysis

Cryptocurrencies are trendy; almost everyone has heard of at least the most popular one, Bitcoin. Even so, there aren't many projects that truly bring cryptocurrencies into people's everyday lives. With that idea in mind, a team developed a crypto project with a very simple approach: a classified ads website for buying and selling items with Bitcoin and Ethereum. They called it Bitsburg.

With Bitsburg, it was important to know where to start; in other words, what the launch market should be. After giving it some thought, the main goal became choosing the right country: one whose society was ready to buy and sell using cryptocurrencies.

The research took a lot of work. Step by step, the main classified ads portals and forums around the world were analyzed. On each site, specific keywords were searched for: Bitcoin, Ethereum, crypto, cryptocurrency, cryptocurrencies, BTC, ETH, etc. The results were then analyzed and the ads found were counted. Crypto-related ads that didn't offer payment in cryptocurrency (like mining rigs) weren't counted.

The results were used to build this heat map, which shows at a glance the relative popularity of cryptocurrencies across different regions of the world.

An unstable local currency doesn't drive the crypto classifieds market

At first, the hypothesis was that countries with unstable local currencies would be the main target. The research started with Bangladesh, Venezuela, Zimbabwe, etc. Based on that assumption, people in these countries would prefer cryptocurrencies over the local currency because they'd be more stable for everyday use. For example, with cryptocurrencies, governments can't seize your money in critical situations or control your wallet, but they can with fiat currencies. The news reported that Venezuela's local currency had collapsed and that this had driven up the popularity of cryptocurrencies. In response, the Venezuelan government launched its own cryptocurrency, the Petro.

But those initial hypotheses turned out to be wrong. The spread of and interest in cryptocurrencies in these countries were lower than expected. For example, in Zimbabwe only 136 ads showed up on local sites accepting Bitcoin payments. In Venezuela, only 122.

Europe is modern, but not modern enough

Next, the research focused on Europe. The working theory at that point was that Europe was ready, because crypto startups and cryptocurrencies were already part of everyday life. It started with the largest European countries, paying special attention to the big local portals, such as Leboncoin in France, Gumtree in the UK, and Ebay-Kleinanzeigen in Germany. The results were better than the first attempt, but still poor: France had 587 ads, the UK 142, and Berlin 147. While some cases may have been missed, there was enough data to get a clear picture.

Regulation, surprisingly, favors the crypto market

Finally, the research moved to North America, with surprising results. In the US, people commonly use Craigslist, the hugely popular classified ads portal, to buy and sell. In New York alone, more than 2,000 ads appeared offering the option to pay with cryptocurrency. In Manhattan alone there were more than 400 ads, more than in the entire UK. Craigslist even lets you check a box called "Cryptocurrency: OK" to filter results and see items you can buy with cryptocurrency. Craigslist understands that people are ready to bring cryptocurrencies into their lives.

Thanks to this research, it was possible to quickly identify the best target market. But another interesting question came up: why was the situation in the US so different from that of the other countries analyzed?

These are the possible reasons that were identified:

• In the US it's very easy to buy cryptocurrency. With Coinbase you can do it in just two clicks and with a simple verification process.
• The government regulates cryptocurrency markets in the US and there's detailed information available about them. This makes users feel more confident trading cryptocurrencies.

Canadian markets also show positive growth in interest in and use of cryptocurrencies. Hundreds of ads accepting crypto payments appeared on Canadian sites.

The US market has huge potential for startups in the crypto space and is setting the trend. It's expected that, over time, it will encourage other countries with large economies to adopt cryptocurrencies more broadly.

More products for cryptocurrencies = sustainable growth

Once people start using cryptocurrencies daily to buy goods and services, crypto markets will stabilize and grow sustainably. The root of that relationship could well be the classified ads market, where users sell secondhand items directly to one another.

That's why Bitsburg took its first steps in that direction by launching bitsburg.com, a website for buying and selling items with cryptocurrency.

The site was designed to be attractive, easy to use, and built with features tailored to cryptocurrencies. For example, users can enter the price in whatever fiat currency they choose and the system automatically converts it to BTC or ETH. Posting ads for your old or unused items on Bitsburg or other sites helps cryptocurrencies gain popularity around the world.