OP Research: 2023 Crypto Nomad's Launch Guide
What practical factors should be considered to become a crypto nomad in 2023?Author: CloudY, OP Research
Editor: Vincero, YL, OP Research
What is a Crypto Nomad?
Digital Nomad
Nomad originally referred to people without a fixed residence, but it can also be understood as someone who roams around without a permanent home or destination. About 5-10 years ago, when the internet was booming globally, the term "Digital Nomad" frequently appeared across various media platforms. The powerful and mature infrastructure of the internet, along with the emergence of various new jobs, made being a Digital Nomad possible. In fact, being a Digital Nomad is not a profession or a job, but a lifestyle—a way of living that allows individuals to work through mobile devices and the internet, freely designing their own work methods and locations, similar to the concept of work-life balance.
Thus, it is also referred to as mobile work or remote work. These terms have become increasingly common over the past three years due to the pandemic. The pandemic has significantly changed how people work and live, transforming the idea of being a Digital Nomad from an ideal lifestyle into a reality that many can try, or are already living.
Digital Nomads have many advantages, such as the freedom to choose their work locations and hours, saving on rent and commuting costs, and the ability to work globally via the internet. However, there are also some risks, such as potential internet outages, power shortages, and time zone issues. Nevertheless, being a Digital Nomad is a great choice for those who love travel and freedom. This lifestyle can help individuals achieve self-actualization and experience different cultures and ways of life in various places. As a challenging and opportunity-filled lifestyle, it suits those who are creative, flexible, and courageous.
Crypto Nomad
Similar to Digital Nomads, we define Crypto Nomads as individuals who work remotely via the internet, primarily involved in the crypto industry, and do not have fixed work or living locations. They use digital currencies as a means of payment for various purposes such as travel, shopping, and investment. This lifestyle has become increasingly popular under the circumstances of the pandemic and war, which have limited commuting and hindered communication between countries. Additionally, the long-standing war between Ukraine and Russia has created financial barriers, making the free exchange of currencies and stable exchange rates difficult. 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 with almost no barriers.
At the same time, the growing crypto community and the development of the digital economy have facilitated the emergence of Crypto Nomads. Improved infrastructure has provided greater freedom for Crypto Nomads, and the global network has become widely accessible compared to a decade ago. More and more merchants and services, such as hotels, restaurants, and online platforms, accept digital currencies. Of course, they still face some risks, such as price volatility of digital currencies, lack of regulation and protection, and potential risks of fraud and hacking.
The crypto bull market over the past two years has also allowed more people to come into contact with and understand crypto assets, leading them to invest in this industry and participate in its construction and development. At this opportune moment, the crypto industry has fully launched the Web3 internet revolution.
Crypto Nomad from China
However, while the world embraces Web3, China has chosen a strict crackdown policy. With a series of regulations introduced and repeated statements made, China's Bitcoin mining machines have gradually moved overseas, and domestic exchanges have begun to impose restrictions on Chinese citizens. The once common scene of "15 BTC for a bowl of noodles" is no longer present. Under high-pressure policies, being a Crypto Nomad has become a preferred solution, allowing individuals to maintain their previous profit-making methods and income while traveling to various places. With relaxed domestic pandemic policies, they can explore the country, enjoying nature during the day and working or attending meetings at night. When domestic pandemic policies tighten, they can fly to Bali for surfing, go to Hokkaido for skiing, ride hot air balloons in Cappadocia, or watch the World Cup in Qatar. Most importantly, due to the unique nature of the crypto industry, we need to communicate with people from all over the world and understand various mainstream cultures. The life of a Crypto Nomad provides us with this opportunity to engage with locals, learn their languages, and experience their cultures, which helps us better understand the operation and maintenance of different projects and communities.
Factors Influencing the Life of Crypto Nomads
When we decide to live as Crypto Nomads, the first question we face is "Where to go?" This seemingly simple question hides a wealth of information, such as local policies regarding the crypto industry, the state of industry development, visa acquisition, cost of living, safety, living environment, and the preparations and skills needed before departure. Since everyone has their own preferences, it is essential to consider the most suitable options based on individual circumstances. Therefore, this article will focus on providing relevant information about various countries or regions that can serve as potential destinations, offering references for those looking to live as Crypto Nomads.
PS: Since factors such as visa, cost of living, safety, and living environment do not differ significantly between Crypto Nomads and Digital Nomads, and given that Digital Nomads have already developed to a certain extent, this article will primarily summarize existing Digital Nomad resources regarding these factors.
Policy
The policies of various countries regarding crypto assets will determine the development of the local industry and the convenience of using cryptocurrencies in daily life, as well as the acceptance level among citizens. This directly impacts the opportunities and challenges that Crypto Nomads will face. Currently, there are not many countries and regions with relatively lenient policies toward the crypto industry; most have begun to tighten regulations gradually.
Of course, one of the most famous crypto-friendly countries in the industry is El Salvador. The Republic of El Salvador, located in northern Central America, announced in September 2021 that it would recognize Bitcoin as legal tender alongside the US dollar. Subsequently, a series of policies were introduced to promote the use of Bitcoin payments domestically, including government-supported wallets, Bitcoin ATMs, and Bitcoin trust funds. El Salvador even created a "Bitcoin City" at the foot of the Conchagua volcano.
Next is Dominica, promoted by Justin Sun. Dominica is an island nation in the Caribbean, which announced in October 2022 that it would recognize seven cryptocurrencies from the Tron ecosystem as legal tender and would issue a national cryptocurrency called "DMC." Dominica also allows the use of these cryptocurrencies for any economic activity, and transactions with Dominica's current legal currency, the East Caribbean dollar (XCD), are exempt from capital gains tax.
Adopting cryptocurrencies as legal tender is a radical policy that is ultimately rare. Most countries and regions restrict the use of cryptocurrencies within their borders through regulation to mitigate uncontrollable risks. However, regulation varies in strictness. For example, the United States, the European Union, Japan, and Singapore have maintained a relatively open and supportive attitude, encouraging research and development in the domestic crypto industry while also regulating centralized exchanges and wallets, establishing relevant laws and regulations to protect consumers and investors.
The United States released its first “Crypto Regulatory Framework” in September 2022, clearly focusing on customer protection and crime prevention. The SEC has continued to monitor the crypto industry and has issued fines to The Block and Blok.one;
The European Union also passed the landmark “Markets in Crypto-assets Regulation Bill (MiCA)” in October 2022, which addresses issues such as anti-money laundering, consumer protection, accountability for crypto businesses, the environmental impact of the industry, and stablecoins;
Japan's regulatory efforts have been more stringent. Following the amendment of the Payment Services Act (PAS) in 2017, several laws have been issued and revised, such as the Act on Prevention of Transfer of Criminal Proceeds, the Financial Instruments and Exchange Act (FIEA), and the Financial Instruments Sales Act. Japan has even established an industry self-regulatory organization called the Japan Virtual Currency Exchange Association (JVCEA) to ensure the healthy and regulated development of the crypto industry;
As a financial hub in the Asia-Pacific region, Singapore released its “Cryptocurrency Guidelines (IRS Virtual Currency Guidance)” in 2014, classifying cryptocurrencies as "property" rather than "currency." Singapore has consistently encouraged the use and development of crypto technology, but recently has been restricting public participation in crypto asset investments, especially in ICOs, lending, and high-leverage trading. Therefore, the acceptance of crypto assets among the public in Singapore is quite high; for example, advertisements for centralized exchanges are often seen in subway (MRT) stations.
Other countries and regions have similar situations, such as South Korea and other Southeast Asian countries, which encourage the development of the crypto industry but regulate and restrict crypto services aimed at the public. Particularly after the GameFi gold rush, crypto assets have rapidly gained popularity in Southeast Asian countries, and governments have shown ambiguous attitudes toward this due to its potential for economic development.
Additionally, Hong Kong, which recently plans to rely on the crypto industry for recovery, is also worth mentioning. Since the release of the “Policy Declaration on the Development of Virtual Assets in Hong Kong”, which officially supports retail trading of virtual assets and requires exchanges to operate in Hong Kong, it has recently approved Bitcoin and Ethereum futures ETFs, set to launch on the Hong Kong Stock Exchange on December 16. The declaration also states that it will support the development of NFTs and the metaverse in Hong Kong.
Industry Development
The development of the crypto industry in various countries is closely related to local policies and is also influenced by the country's economic level. When we look at potential investment amounts, according to Hutt Capital data, crypto VC funds located in North America lead significantly in both number (68%) and average funding amount ($259m/87%). Although Europe has more crypto VC funds compared to Asia, Asia's crypto VC funds ($120m) have a slight advantage over Europe ($61m) in terms of funding amount. Among the 14 crypto VC funds with funding exceeding $500m, 13 are in North America. This indicates that the primary source of funding for the entire industry is still in North America, specifically the United States.
Source: Hutt Capital BlockChain VC Landscape --- 2022 Edition
However, when we focus on cities, this phenomenon becomes even more pronounced. According to Crypto Fund Research data, San Francisco and New York have the most crypto funds in the world (>70), while London, Singapore, and Hong Kong follow with 30-50 crypto funds. Chicago, Shanghai, Los Angeles, Zug in Switzerland, Menlo Park in California, and Santa Monica fall into the third tier with 10-20 crypto funds. The map clearly shows that crypto funds are concentrated along the East and West Coasts of the United States and Western Europe, with some located in East Asia and Southeast Asia, while others are distributed in Eastern Europe, Western Asia, and Australia, with only a few in Africa and South America.
Source: Cryptocurrency Investment Fund Industry Graphs and Charts - CryptoFundResearch
Source: Cryptocurrency Investment Fund Industry Graphs and Charts - CryptoFundResearch
When we focus on crypto projects, according to a report by Zero One Think Tank, in 2021, there were a total of 1,812 financing events in the global blockchain industry, with most funded projects located in the United States (536), far exceeding the second tier of China (105), the United Kingdom (99), and Singapore (96). The third tier includes Canada (51), India (33), Germany (30), and Switzerland (28). Countries with more than 10 projects receiving funding include: 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 crypto funds, it can be seen that, aside from the United States, China, the United Kingdom, Singapore, and Switzerland, the distribution of investment and financing does not match the distribution of funds. This indicates that when choosing to live as a Crypto Nomad in countries outside these five, one needs to consider a more suitable direction. Based on the data above, we can find that the current main development areas of the industry include the East and West Coasts of the United States, East Asia, Southeast Asia, and Western Europe.
Source: Global Blockchain Investment and Financing Report (2021) - Zero One Think Tank
Visa
As a holder of a Chinese passport, unlike those with passports from countries with many visa-free options, visas are the primary factor we must consider when traveling abroad. Entry visas for various countries can be roughly categorized into several types: 1. Travel; 2. Study; 3. Work; 4. Business; 5. Green Card/Permanent Residency. Since this article primarily targets Crypto Nomads, immigration methods such as investment, marriage, and purchasing passports will not be discussed. This section will collect some online information to introduce relevant visa information for several popular countries and regions.
First, due to the unique nature of the Chinese passport, we found the following chart based on Wikipedia data, which categorizes the visas available to holders of ordinary Chinese passports into: 1. Visa-free; 2. Visa on arrival and e-visa; 3. Visa on arrival; 4. E-visa; 5. Hong Kong and Macau travel permit; 6. Taiwan entry permit; 7. Visa required in advance; 8. Refused entry. The chart also marks corresponding colors based on different regions. From the chart, it can be seen that the regions where Chinese passport holders can travel relatively easily are mainly in Southeast Asia, the Middle East, Eastern Europe, East Africa, and parts of South America. For details on countries or regions that implement visa-free or visa-on-arrival policies for Chinese citizens, refer to the “45 Countries or Regions Implementing Visa-Free or Visa-on-Arrival Policies for Chinese Citizens” released by the Chinese Immigration Administration in 2019.
Southeast Asian countries, due to geographical and geopolitical factors, are generally more friendly to Chinese citizens. For example, Thailand and Indonesia offer visas on arrival, while Malaysia provides an annual multiple-entry e-visa. Specific visa details can be found in the article by the Zhihu user 泰游趣 - “The Most Comprehensive Southeast Asia Visa Guide”. Due to economic and historical reasons, Eastern Europe also has many visa benefits, such as visas on arrival and e-visas for the three Caucasus countries (Armenia, Georgia, and Azerbaijan), as well as visa-free access to Serbia, Bosnia and Herzegovina, and Albania. Visa details can be referenced in the article by Zhihu user 牛月月 - “Visa Guide for 16 Countries from India to Egypt.” The Middle East mainly includes visa-free access to Iran, the UAE, and Qatar, as well as visas on arrival for Saudi Arabia and Lebanon. For Africa, visa information can be found in this article on Mafengwo - “Visa Guide for 25 African Countries”, although this guide was published in 2018 and may be outdated. After identifying target countries, it is advisable to check the latest requirements on the embassy's website.
Source: Visa Requirements Map for Ordinary Chinese Citizens - WikiPedia
In addition to visa policies for Chinese citizens, due to the popularity of Digital Nomads worldwide, especially after the COVID-19 pandemic, many countries have already established or plan to offer special visas for Digital Nomads to attract more people to spend. Most countries' Digital Nomad visas allow holders to stay in their countries for one year or even longer, which is clearly more attractive than the 15-30 day tourist visas. However, while Digital Nomad visas have long validity periods, each country has specific requirements for obtaining these visas, such as proof of employment, minimum income, income verification, minimum stay duration in the country, maximum stay duration, health insurance, and restrictions on engaging in paid work in the host country. According to an article by Ward Williams on Investopedia “Countries Offering Digital Nomad Visas”, there are currently 49 countries and regions that have already established or plan to offer Digital Nomad visas, which are marked on the map below. It can be observed that these regions are mainly distributed in Europe, while Southeast Asia, Australia, South Africa, and the Americas have a few countries 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 rates are all factors that Crypto Nomads need to consider. The living environment represents a region's climate, culture, friendliness of the people, convenience, internet quality, etc., which affects the quality of life. The cost of living is a key factor that Crypto Nomads must face; relatively stable income and reasonable expenditure planning are prerequisites for sustaining the Crypto Nomad lifestyle. Crime rates indicate personal and property safety; walking in Singapore with valuables is a completely different feeling than doing so in New Delhi. Based on data from the well-known Digital Nomad website Nomadlist and other online resources, we have selected and summarized some cities in various countries.
Nomadlist provides a Nomad Score that considers living costs, climate, entertainment, internet quality, etc. The top 12 cities from high to low are as follows, with Southeast Asian and Southern European countries each occupying four spots. The living costs in these 12 cities range from $1,000 to $3,300 per month, averaging about $1,800 per month. Although Lisbon has the highest overall score among the 12 cities, its living cost is also the highest, exceeding that of Madrid by $1,000. In contrast, Chiang Mai, with a living cost of $1,316 per month, ranks fourth, making it quite attractive.
Source: Ranking for nomad cities - Nomadlist
Unlike Nomadlist, Bethenny Carl provides different recommendations based on her personal experiences, emphasizing the preferences of different groups regarding living costs and lifestyles. For example, some prefer a lower work pressure and a more economical nomadic lifestyle, while others enjoy nightlife and exploring different cuisines. Therefore, based on factors such as living conditions, transportation, weather, internet, food and entertainment, healthcare, and crime rates, Carl provides a distinctly different list of recommendations, along with living costs ranked from low to high. For details, please refer to Carl's article. Among these 11 cities, six are located in Europe, while the other five are spread across Asia and the Americas, reflecting a typical Western perspective.
Although the two lists differ, a few cities are mentioned in both: Lisbon in Portugal, Buenos Aires in Argentina, and Medellín in Colombia, with Lisbon consistently ranking as the top city. This indicates that the ancient city of Lisbon, as the capital of Portugal, is well-suited as a base for a nomadic lifestyle, while Buenos Aires and Medellín are also excellent choices.
Source: Map of the 11 best locations for Digital Nomads - Bethenny Carl
At this point, you may still not have a clear destination, but that doesn't prevent you from adding the Crypto Nomad lifestyle to your to-do list as one of your lifestyle options. In terms of policy, most countries are based on regulation to promote the development of the crypto industry while limiting public participation to some extent. The industry development is mainly concentrated in places like Hong Kong, Singapore, the United States, and the United Kingdom, with a trend of dispersion in other countries and regions. Regarding visas, the regions where Chinese passport holders can travel relatively easily are Southeast Asia, the Middle East, Eastern Europe, East Africa, and 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 primary choices, with particular emphasis on Lisbon, Buenos Aires, and Medellín. The Crypto Nomad lifestyle is not just about experiencing different cultures; more importantly, it represents a way of thinking that differs from traditional agrarian civilization—a lifestyle that breaks free from the current environment of competition and stress.
Arbitrage Thinking
Arbitrage is the most fundamental way to gain profit. Being a Crypto Nomad is essentially a form of cross-border arbitrage, allowing individuals to share global liquidity as globalization progresses, enabling them to earn salaries from developed countries while residing in developing countries. Meanwhile, the development of blockchain technology and the crypto market has also facilitated globalization and liquidity, improving efficiency.
Chinese civilization, as the most unique among the four ancient civilizations (Ancient Babylon, Ancient Egypt, Ancient India, Ancient China), originated the latest (around 2000 BC, compared to Sumerian civilization around 6000 BC, Fayum civilization around 5000 BC, and Harappan civilization around 3000 BC), has the most isolated geographical position (in East Asia, farthest from other civilizations), is the most closed and independent (due to geographical factors, it has the least interaction with other civilizations), and is the only civilization that has continued to this day without interruption (other ancient civilizations have not survived to the present). These characteristics have shaped this agrarian civilization that has lasted for thousands of years, characterized by a smallholder mentality of "one mu of land and three-tenths of a field." For thousands of years, there has only been a cycle of dynastic collapse and competition, with no exploration and innovation characteristic of maritime civilizations, resembling a swarm—where for individuals, freedom and wisdom are not primary needs, but rather, as a collective, the focus is on survival.
To become a Crypto Nomad, one must first change their way of thinking, thereby changing their lifestyle. Break free from the cycle of competition and bid farewell to the singular values of the "three mountains" of "houses, cars, and money" in the new era. Instead, focus on your inner self, pursue what you truly desire, explore the world, and embrace love!
References
Overview of Global Cryptocurrency Regulatory Policies
Markets in Crypto-assets (MiCA)
Interpretation of Japan's Cryptocurrency Regulatory Amendments
Hutt Capital BlockChain VC Landscape --- 2022 Edition
Policy Declaration on the Development of Virtual Assets in Hong Kong
Cryptocurrency Investment Fund Industry Graphs and Charts
Global Blockchain Investment and Financing Report (2021)
45 Countries or Regions Implementing Visa-Free or Visa-on-Arrival Policies for Chinese Citizens
Guide | The Most Comprehensive Global Visa Guide!
The Most Comprehensive Southeast Asia Visa Guide
Visa Guide for 16 Countries from India to Egypt
Visa Guide for 25 African Countries
Visa Requirements Map for Ordinary Chinese Citizens
Countries Offering Digital Nomad Visas
11 Best Locations to Be a Digital Nomad in 2022
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