Bitcoin trading volume in Venezuela surpasses other countries in crisis

  • On the cryptocurrency exchange plattform LocalBitcoins, Bitcoin’s trading volume in Venezuela reached $300 million in 2019.
  • The Government of Venezuelan officially stops the trading of the cryptocurrency Petro. 

Researcher Larry Cermak reported on his Twitter account data about the LocalBitcoins exchange platform and Bitcoin’s trading volume in countries with economic crises. The data shows that Bitcoin’s trading volume in Venezuela reached $300 million USD in 2019.

In December 2019, CoinDance data revealed that Bitcoin’s trading volume in Argentina and Venezuela rose to record levels. In the week of December 21, the trading volume of BTC reached 500 thousand USD in Argentina. While in Venezuela, the same figure was $24 million, with a 14.5% growth compared to the second week of December.

Bitcoin trading increases in crisis countries

According to the data collected by Cermak, Bitcoin’s trading volume in Venezuela exceeded that of other countries with economic or political crises. In comparison, the Bitcoin trading volume on LocalBitcoins for other countries reached the following figures: Colombia $134 million, Peru $45 million, Chile $13.84 million and $11.94 million. During 2019, these countries experienced some kind of political, social or economic upheaval.

In addition, Cermak collected data on the growth of the Bitcoin trading volume in 2019. Of the countries reviewed, Egypt had the highest growth in Bitcoin trading volume with 69.8%, followed by Colombia and Peru with 59.8% and 47.7% respectively. Argentina (44.7%) and Venezuela (33.2%) registered an important growth in their trading volume. Both countries have the most severe economic crises in the region and their citizens have been adapting by trading Bitcoin. Iran (52.1%) and Hong Kong (18.5%) also registered an increase in the trading volume with BTC.

As Bitcoin rises, Venezuela stops the trade of Petro

It is notable that while Bitcoin continues to increase its presence in Venezuela and the region, the digital coin issued by the Central Bank of Venezuela, Petro has stopped its trade. The Venezuelan government issued this order and stated that Petro’s exchange platform would go into maintenance.

This measure has been in place since the beginning of 2020 and no update has been made so far. Some economists, however, have claimed that the Venezuelan government’s action is due to rising inflation and the devaluation of the local currency against the US dollar.

As reported by CNF, the Venezuelan government has tried to impose the use of Petro, but it has had little impact on local trade. Its difficult trade and lack of transparency have only generated distrust in the population.

Bitcoin  trades at $8,655 USD, at the time of publication, with a very slight upward movement (2.36%) in the last 24 hours.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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