Venezuela has been buying a lot more Bitcoin than other “at-risk” economies, such as Argentina, Colombia, Turkey, and Iran which have also seen Bitcoin volumes increase as a hedge against runaway inflation. Bitcoin volumes in Venezuela continue to outperform other troubled countries. LocalBitcoins volume: Venezuela – $M. Nov 12, · Venezuela’s peer-to-peer bitcoin activity has been extraordinary, whether measured as an absolute or relative to GDP. What sets Venezuela apart may be . In bitcoin terms meanwhile, the data one month after the currency reforms took effect marked the biggest ever seven-day trade volumes by Venezuelans, outpacing even April’s spike of BTC. Suspicions had been on the rise over both the new bolivar and its ties of Venezuela’s dubious state-sponsored cryptocurrency Petro.
Bitcoin trade volume venezuelaBitcoin Price Skyrockets in Venezuela and other Oil Exporting Nations
Since the third quarter of , the number of Venezuelan Bolivars to Bitcoin trading volumes has continued to break records nearly on a weekly basis. As per the data released on September 2 by the monitoring resource CoinDance, Venezuelans traded billion sovereign bolivars VES on Localbitcoins alone during the week that ended on August In the graph below, courtesy of CoinDance, it is evident that there has been a steady increase in the weekly LocalBitcoins trading volume since Interestingly, this recent figure has surpassed the previous record set a week earlier at 77 billion.
As a result, the Venezuelan government has deemed it necessary to place embargoes on foreign currency affecting crypto trading activities indirectly. The volume of trade w. The beginning of recession driven by COVID and the subsequent oil market crash is beginning to reshape the world.
The recent meltdown in the crude oil prices is having far devastating impacts on many oil exporting countries. She added. Other oil exporting countries that are seeing similar hyper-inflationary issues after the oil crash include Colombia and Nigeria. These countries are seeing a huge spike in commodity prices, including Bitcoin.
Nevertheless, the number of Bitcoins traded in the region is still consistent with the last couple of months. The chart above depicts the volume on LocalBitcoins in Venezuela w.
Bolivar top and Bitcoin bottom. As reported earlier , the actual use of Bitcoin [BTC] in Venezuela and other South American countries is limited as a store of value, but considerable as a bridge currency to obtain USD. These countries are battling with problems of hyperinflation, where the government is printing heaps of cash, but the price of egg and milk is reaching parity with the minimum monthly wages.
It presents a strong case for Bitcoin [BTC] and other cryptocurrencies. Realistically, the problem is far more adverse to be solved by a shift in currency.
Moreover, as the U. The rules also empower SUNACRIP with the ability to inspect mining companies and confiscate hardware if that company is found to be in breach of the new laws. The imposition of regulations occurs as Venezuela achieves a new all time high in terms of Bitcoin trading volume. This compares with a volume of Bitcoin a year earlier. However, the vast bulk of that growth in volume has come about over the course of the last 3 months.
It would appear that the Venezuelan state is attempting to control the flow of capital via cryptocurrency. The fees imposed through the new regulations are excessive. A prolonged financial crisis in Venezuela, brought about through a combination of financial mismanagement and economic sanctions imposed by the United States, has seen the destruction of personal wealth due to the hyper inflation that has followed. The crisis has led to the largest mass migration in the recent history of South America.
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