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OP Research: 2023 Crypto Nomad Launch Guide

OP Rsearch

22-12-29 20:30

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Original Title: "OP Research: 2023 Crypto Nomad Sailing Guide"

Original Author: CloudY, OP Research

What is Crypto Nomad

Digital Nomad

Nomad, originally referred to a nomadic people without a fixed abode or destination, but can also be understood as a person who roams around without a fixed residence. 5-10 years ago, when the Internet was booming globally, the term Digital Nomad frequently appeared on various media platforms. The powerful and mature infrastructure of the Internet and the various new types of work that came with it made it possible for Digital Nomads to exist. In fact, Digital Nomad is not a profession or a job, but a way of life, a lifestyle similar to work-life balance, where work is done through mobile devices and the Internet, and the individual has the freedom to design their own work style and work location. Therefore, it is also known as mobile office or remote work. These two terms have become increasingly common in the past three years due to the pandemic. It is the pandemic that has brought about significant changes in the way people work and live, turning Digital Nomad from an ideal lifestyle into a life that many people can try, and even have already experienced.

Digital Nomad has many advantages, such as the freedom to choose work location and work time, saving on rent and commuting costs, and the ability to work globally through the internet. However, there are also some risks, such as the possibility of encountering network outages, power shortages, and time zone issues. Nevertheless, Digital Nomad is a great choice for those who love travel and freedom. This lifestyle can help people achieve self-realization and experience different cultures and ways of life in different places. As a challenging and opportunistic way of life, it is suitable for those who are creative, flexible, and courageous.

Crypto Nomad

Similar to Digital Nomads, we define Crypto Nomads as people who work remotely through the internet, primarily in the Crypto industry, without a fixed location for work and living. They use digital currencies as a payment method for various purposes such as travel, shopping, and investment. This lifestyle has become increasingly popular during the pandemic and wars, as commuting has been restricted and communication between countries has been hindered. Additionally, the long-standing war between Ukraine and Russia has created financial barriers, making it difficult to achieve free currency exchange and stable exchange rates. However, benefiting from the anonymity, decentralization, and security of digital currencies, as well as the convenience and speed of digital transactions, Crypto Nomads can live almost without barriers.

Meanwhile, the growing crypto community and the development of the digital economy have made it easier for Crypto Nomads to emerge. The more sophisticated infrastructure makes Crypto Nomads more free, and the global network is much more widespread than it was 10 years ago. Additionally, more and more merchants and services are accepting digital currencies, such as hotels, restaurants, and online platforms. Of course, they still face some risks, such as the volatility of digital currency prices, the lack of regulation and protection, and the potential risks of fraud and hacking attacks.

The past two years of the cryptocurrency bull market have also allowed more people to come into contact with and understand cryptocurrency assets, and thus invest in and participate in the construction and development of the industry. At this opportune moment, the crypto industry has fully launched the Web3 revolution in the internet.

Crypto Nnomad from China

However, while the world is embracing Web3, China has chosen a strict crackdown policy. With a series of regulations and speeches, Chinese Bitcoin miners have gradually gone overseas, and domestic exchanges have also begun to restrict Chinese people. The scene where 15 BTC could buy a bowl of noodles no longer exists. Under the high-pressure policy, Crypto Nomad has become a preferred solution, maintaining its previous profit and income, traveling to various places, and traveling around the world. When domestic epidemic prevention policies are relaxed, one can travel around the country, play in the mountains and water during the day, ski and surf, and work and hold meetings in the room at night. When domestic epidemic prevention policies are tightened, one can fly to Bali for surfing, go to Hokkaido for skiing, go to Cappadocia for hot air balloon rides, and go to Qatar to watch the World Cup. Most importantly, due to the special nature of the cryptocurrency industry, we need to communicate with people from all over the world and understand various mainstream cultures. The life of Crypto Nomad gives us the opportunity to go to different parts of the world, communicate with local people, understand their language, and personally experience their culture, which will enable us to better understand the operation and maintenance of different projects and communities.

Factors of being Crypto Nomad

When we decide to live the life of a Crypto Nomad, the first question we face is "where to go"? Behind this seemingly simple question, there is a lot of information hidden, such as local policies towards the crypto industry, local industry development status, visa acquisition, cost of living, safety, living environment, and so on. There is also preparation work and skill development that needs to be done before going. Since everyone has their own preferences, it is necessary to consider the most suitable plan based on the actual situation. Therefore, this article will focus on introducing relevant information about various countries or regions that can be targeted as a destination, providing reference for everyone to live the life of a Crypto Nomad.

PS: Due to factors such as visa, cost of living, safety, and living environment, there is not much difference between Crypto Nomad and Digital Nomad. As Digital Nomad has already developed to a certain extent, this article will mainly collect and summarize existing Digital Nomad information on these factors.

Policy

The policies of various countries towards cryptocurrency assets will determine the development of the local industry and the convenience and acceptance of the use of cryptocurrencies in daily life, which directly affects the opportunities and challenges that Crypto Nomad will face. Currently, there are not many countries and regions that have relatively loose policies towards the cryptocurrency industry, and most of them are gradually tightening their policies for regulation.

Of course, one of the most crypto-friendly countries in the crypto industry is El Salvador. The Republic of El Salvador is a country located in the northern part of Central America. In September 2021, it announced that Bitcoin would be used as a legal tender alongside the US dollar, and subsequently introduced a series of policies to promote the use of Bitcoin payments domestically, including government-supported wallets, Bitcoin ATMs, and Bitcoin trust funds. El Salvador has even built a "Bitcoin City" in the coastal area at the foot of the Conchagua volcano.

Next is the Dominica promoted by Sun Yuchen. Dominica is an island country located in the Caribbean Sea in Central America. In October 2022, it announced that 7 cryptocurrencies in the Tron system will become its legal currency, and it will issue a national cryptocurrency "DMC". At the same time, Dominica allows the above-mentioned cryptocurrencies to be used for any economic activity, and transactions between them and the current legal currency of Dominica, the Eastern Caribbean Dollar (XCD), are exempt from capital gains tax.

The policy of using cryptocurrency as legal tender is still a minority, and most countries and regions restrict the use of cryptocurrency within their borders through regulation to reduce uncontrollable risks. However, there are differences in the degree of regulation. For example, countries and regions such as the United States, the European Union, Japan, and Singapore have always adopted a relatively open and supportive attitude, encouraging research and development of the domestic cryptocurrency industry, while also regulating centralized exchanges and wallets and establishing relevant laws and regulations to protect the interests of consumers and investors.

美国 (the United States) released its first "Cryptocurrency Regulatory Framework" in September 2022, which focuses on protecting customers and preventing crimes. The SEC has also been paying attention to the cryptocurrency industry and has issued fines to The Block and Blok.one.

The European Union also passed the milestone Crypto Assets regulation bill (MiCA) in October 2022, which involves anti-money laundering, consumer protection, accountability of cryptocurrency companies, environmental impact of the industry, and stablecoins.

Japan's standardization efforts have become even more closely knit. Since the revision of the Payment Service Act (PAS) in 2017, laws such as the Act on Prevention of Transfer of Criminal Proceeds, the Financial Instruments and Exchange Act (FIEA), and the Act on Sales of Financial Instruments have been promulgated and revised one after another. Even an industry self-regulatory organization called the Japan Virtual Currency Exchange Association (JVCEA) has been established to ensure the healthy and standardized development of the cryptocurrency industry.

Singapore, as the financial center of the Asia-Pacific region, released the "IRS Virtual Currency Guidance" as early as 2014, treating cryptocurrencies as "property" rather than "currency". Singapore has always encouraged the use and development of encryption technology in Singapore, but recently it has been restricting people's participation in investment methods related to encrypted assets, especially ICOs, loans, and high-leverage trading. Therefore, the acceptance of encrypted assets by people in Singapore is very high, for example, large centralized exchange advertisements can often be seen in its subway (MRT) stations.

Similar situations exist in other countries and regions, such as South Korea and other Southeast Asian countries, which encourage the development of the cryptocurrency industry but regulate and restrict cryptocurrency services for the public. Especially after the GameFi gold rush, cryptocurrency assets have rapidly gained popularity in Southeast Asian countries, and the attitudes of various governments towards this are extremely ambiguous due to its contribution to economic development.

In addition, it is worth mentioning Hong Kong, which recently planned to rely on the cryptocurrency industry to turn around. Since the release of the "Declaration on the Development of Virtual Assets in Hong Kong", which officially supports retail investors to buy and sell virtual assets and requires exchanges to go to Hong Kong, it has also recently passed Bitcoin and Ethereum futures ETFs and was launched on the Hong Kong Stock Exchange on December 16. At the same time, the aforementioned declaration also stated that it will support the development of NFT and Metaverse in Hong Kong.

Industry Development

The development of the encryption industry in various countries is not only closely related to local policies, but also influenced by the economic level of the country. When we look at potential investment amounts, according to Hutt Capital data, currently, crypto VC funds in North America are far ahead in terms of quantity (68%) and average funding amount ($259m/87%). Although the number of crypto VC funds in Europe is higher than in Asia, Asian crypto VC funds ($120m) have a slight advantage over Europe ($61m) in terms of funding. And among the 14 crypto VC funds with funding amounts exceeding $500m, 13 are in North America. Therefore, it can be seen that the main source of funding for the entire industry is still in North America, or more bluntly, the United States.

Source：Hutt Capital BlockChain VC Landscape—2022 Edition

However, when we focus on cities, this phenomenon becomes even more apparent. According to Crypto Fund Research data, San Francisco and New York have the most cryptocurrency funds in the world (>70), while London, Singapore, and Hong Kong follow with 30-50 cryptocurrency funds. Chicago, Shanghai, Los Angeles, Zug in Switzerland, Monrovia in California, and Santa Monica are in the third group with 10-20 cryptocurrency funds. It is also clear on the map that cryptocurrency funds are concentrated in the coastal areas of the United States and Western Europe, some in East Asia and Southeast Asia, and others are distributed in Eastern Europe, Western Asia, and Australia, with only a few scattered in Africa and South America.

Source：Cryptocurrency Investment Fund Industry Graphs and Charts - - Crypto FundResearch

Source：Cryptocurrency Investment Fund Industry Graphs and Charts - Crypto FundResearch

When we focus on the cryptocurrency industry, according to a report by Zero One Research, there were a total of 1812 financing events in the global blockchain industry in 2021. The majority of the funded projects were located in the United States (536), far surpassing the second-tier countries of China (105), the United Kingdom (99), and Singapore (96). The third-tier countries include Canada (51), India (33), Germany (30), and Switzerland (28). There were more than 10 countries with over 10 projects receiving financing, including France (20), Australia (19), South Korea (17), Israel (14), Estonia (13), Japan (13), Vietnam (12), the Netherlands (12), Brazil (11), and the Philippines (10). Comparing the distribution of investment and financing with that of cryptocurrency funds, we can see that the distribution is not consistent outside of the five countries of the United States, China, the United Kingdom, Singapore, and Switzerland. Therefore, when choosing to live a Crypto Nomad life outside of these five countries, it is important to consider the direction that is most suitable for oneself. Based on the data above, we can see that the main development areas of the industry currently include the east and west coasts of the United States, East Asia and Southeast Asia, as well as Western Europe.

Source: Global Blockchain Investment and Financing Report (2021) - Yihao Think Tank

Visa

As a citizen holding a Chinese passport, unlike those who possess passports from many visa-free countries, visas are the primary factor we have to consider when traveling abroad. The entry visas of various countries can be roughly divided into several categories: 1. Travel; 2. Study abroad; 3. Work; 4. Business; 5. Green card/permanent residency. Since this article is mainly aimed at Crypto Nomads, immigration methods such as investment, marriage, and passport purchase are not within the scope of our discussion. This section will collect some online information to introduce the relevant visa information of several popular countries and regions.

Firstly, due to the special nature of Chinese passports, we found the following chart based on data from Wikipedia, which categorizes the visas available to Chinese ordinary passport holders into: 1. Visa-free; 2. Landing visa and electronic visa; 3. Landing visa; 4. Electronic visa; 5. Hong Kong and Macao pass; 6. Taiwan entry permit; 7. Visa required in advance; 8. Entry denied. At the same time, according to the situation in different regions, the corresponding colors are marked. From the chart, it can be seen that the relatively convenient areas for Chinese passport holders are mainly distributed in Southeast Asia, the Middle East, Eastern Europe, East Africa, and some parts of South America. Details of countries or regions that implement visa-free or landing visa policies for Chinese citizens can be found in the "45 countries or regions that implement visa-free or landing visa policies for Chinese citizens" released by the Chinese Immigration Management Bureau in 2019.

Due to geopolitical and geographical factors, Southeast Asian countries are usually more friendly to Chinese people, such as Thailand and Indonesia's landing visas, Malaysia's multiple-entry electronic visas, etc. Specific visa information can be found in the article "The Most Comprehensive Southeast Asia Visa Guide" by the user Taiyouqu on Zhihu - "The Most Comprehensive Southeast Asia Visa Guide". Due to economic and historical reasons, Eastern Europe also has many visa preferential policies, such as landing visas and electronic visas for the Caucasus Three (Armenia, Georgia, and Azerbaijan), as well as visa-free policies for Serbia, Bosnia and Herzegovina, and Albania. For visa details, please refer to the article "16 Country Visa Strategy from India to Egypt" by the user Niuyueyue on Zhihu - "16 Country Visa Strategy from India to Egypt". The Middle East mainly has visa-free policies for Iran, the United Arab Emirates, and Qatar, as well as landing visas for Saudi Arabia and Lebanon. For African visas, you can refer to the article "Visa Strategy for 25 African Countries" on Mafengwo, but this guide was published in 2018 and may be outdated. After finding the target country, you need to check the latest requirements on the embassy website.

Source: Map of passport requirements for Chinese citizens with ordinary Chinese passports - WikiPedia

Apart from visa policies targeting Chinese citizens, due to the popularity of Digital Nomads worldwide, especially after the COVID-19 pandemic, many countries have already or plan to offer special visas for Digital Nomads to attract more people to consume. Most Digital Nomad visas in various countries allow holders to stay in the country for up to one year, and some even longer, which is obviously more attractive than the 15-30 day tourist visa. However, although the Digital Nomad visa has a long validity period, various countries have certain requirements for obtaining the visa, such as work permits, minimum income and income proof, minimum and maximum stay time in the country, health insurance, and prohibition of paid work in the country. According to Ward Williams' article on Investopedia, "Countries Offering Digital Nomad Visas", 49 countries and regions currently offer or plan to offer Digital Nomad visas, which are marked on the map below, and specific countries can be viewed in Williams' article. From the map, it can be seen that these regions are mainly distributed in Europe, with a few countries in Southeast Asia, Australia, South Africa, and the Americas offering or planning to offer such visas.

Source：Countries Offering Digital Nomad Visas - Ward Williams

Lifestyle,Cost and Safety

Apart from visas, living environment, cost of living, and crime rate are all factors that Crypto Nomads need to consider. Living environment represents the climate, culture, friendliness of the people, convenience, and network quality of a region, which affects the quality of life. Cost of living is a key factor that Crypto Nomads must face, and stable income and reasonable expenditure planning are the prerequisites for Crypto Nomads to continue. The crime rate means personal and property safety, and walking around with gold and silver in Singapore and New Delhi are two completely different feelings. Based on data from Nomadlist, a famous website for Digital Nomads, and other online sources, we have selected and summarized cities in some countries.

Nomadlist has given a Nomad Score based on factors such as cost of living, climate, entertainment, and network quality. The top 12 cities, ranked from highest to lowest, include 4 cities from Southeast Asia and 4 cities from Southern Europe. The cost of living in these 12 cities ranges from $1000 to $3300 per month, with an average of around $1800 per month. Although Lisbon has the highest overall score among the 12 cities, its cost of living is also the highest, far exceeding the second highest cost of living in Madrid at $1000. Instead, Chiang Mai's cost of living at $1316 per month makes it a very attractive option for ranking fourth.

Source：Ranking for nomad cities - Nomadlist

Different from Nomadlist, Bethenny Carl provides different recommendations based on her personal experience, emphasizing the preferences of different groups of people for living costs and lifestyles. For example, some people prefer less work pressure and more affordable nomadic life, while others enjoy nightlife, exploring different foods and places. Therefore, Carl provides a completely different list of recommendations based on factors such as living conditions, transportation, weather, network, food and entertainment, medical care, and crime rate, and attaches living costs from low to high. For more details, please refer to Carl's article. Six of these 11 cities are located in Europe, and the remaining five are scattered in Asia and the Americas, indicating a more typical European and American perspective.

Although the two lists are different, there are several cities mentioned at the same time, namely Lisbon, Portugal, Buenos Aires, Argentina, and Medellin, Colombia, with Lisbon being the top-ranked city. Therefore, as the ancient city and capital of Portugal, Lisbon is suitable in all aspects as one of the bases for nomadic life, and of course Buenos Aires and Medellin would also be good choices.

Source；Map of the 11 best location for Digital Nomad - Bethenny Carl

At this point, you may still not have a clear destination in mind, but that doesn't stop you from putting Crypto Nomad's lifestyle on your to-do list as one of your ways of life. In terms of policies, most countries are based on regulation to promote the development of the cryptocurrency industry and to some extent limit the participation of ordinary people. The industry's development is mainly concentrated in Hong Kong, Singapore, the United States, the United Kingdom, and other places, and is becoming more scattered in other countries and regions. In terms of visas, the relatively convenient regions for Chinese passports are Southeast Asia, the Middle East, Eastern Europe, East Africa, and some parts of South America. However, considering the existence of Digital Nomad visas, Southern Europe, Australia, and South Africa can also be considered. In terms of quality of life, cost, and safety, Southeast Asia and Southern Europe can be the top choices, while Lisbon, Buenos Aires, and Modlin can be considered. Crypto Nomad's life is not just about experiencing different cultures, but more importantly, it is a way of thinking that is different from traditional agricultural civilizations and a way of life that is detached from the current environment of internal competition.

Arbitragy Thinking

Arbitrage is the most fundamental way to obtain profits. As a Crypto Nomad, it is a cross-border arbitrage behavior. With the development of globalization, people can share global liquidity and live in developing countries with salaries from developed countries. At the same time, the development of Blockchain technology and the Crypto market has also promoted globalization and liquidity, improving efficiency.

As one of the four ancient civilizations (along with Babylon, Egypt, and India), Chinese civilization is the most unique. It originated the latest (around 2000 BC, compared to Sumerian civilization around 6000 BC, Fayum civilization around 5000 BC, and Harappa civilization around 3000 BC), is located in the most remote area of East Asia, has had the least communication with other civilizations, and is the only civilization that has continued to this day (other ancient civilizations have not survived). These characteristics have created a farming civilization that has lasted for thousands of years, with a small-scale farming mentality and a cycle of dynasties collapsing and internal strife, but without the exploration and innovation of a maritime civilization. It is like Swarm - for individuals, freedom and wisdom are not the primary needs, but as a whole, how to survive is the most important.

To become a Crypto Nomad, you first need to change your mindset and lifestyle. Break free from the cycle of internal competition and say goodbye to the single value of the three mountains of "house, car, and money" in the new era. Don't be a passive investor, but focus on your inner self, pursue what you truly want, explore the world, and love!