- Venezuela and Argentina set new records for the weekly trading volume with Bitcoin (BTC) on the LocalBitcoins P2P exchange platform.
- The levels of trade with Bitcoin are increasing due to the complicated economic situation of these countries.
According to data from the platform CoinDance, the trade volume with Bitcoin has increased in Argentina and Venezuela. The Latin American countries set a new record in December of this year.
How much Bitcoin is traded in Venezuela and Argentina?
According to CoinDance the growth of the weekly trading volume has been practically sustained.
By the week of December 21, the Bitcoin trade reached more than 500,000 USD (in local currency, almost 30 million Argentine pesos). In comparison, the previous week registered a trading volume of 300 thousand USD or 21 million Argentine pesos.
In Venezuela, 250 billion bolivars have been traded during these dates (equivalent to 24 million dollars). In contrast, the previous week’s volume was approximately 14.5% lower. Back in November both countries recored a volume of 19 million Argentine pesos and 142 billion bolivars. On this date, the increase in trade volume was significant, but the trade volume of BTC remained practically the same as in other periods.
This indicates that inflation continues to affect national currencies. For this new record there was an increase in both factors. The difference between the volume of trading for Argentina and Venezuela is enormous. However, the causes behind the increase in BTC trade in the region are similar.
Factors of the increase in Bitcoin’s trading volume
The factors that justify the increase in the trading volume for Venezuela and Argentina are political and economic. Both countries are going through a serious economic and social crisis.
As reported by CNF, after the October elections, Argentina’s government changed its exchange rate regime. The new restrictions prohibited citizens from buying goods for more than USD 200 per month. For cryptocurrencies, the ban was total. Argentines, in theory, could not acquire Bitcoin with their credit cards.
In Venezuela, there are still high levels of inflation and an increase in the price of local products. The national currency continues to lose its value and its citizens increasingly resort to foreign currencies for their daily operations.
Although the Venezuelan government has attempted to impose the use of a digital coin issued by the local central bank, the Petro has had little impact on local commerce. Its difficult trade and lack of transparency have only generated distrust in the population.
In these countries, Bitcoin has emerged as a reliable, unrestricted and adequate alternative for moving through the crisis. This is how the analyst CryptoWelso records it on his Twitter account.
Demand for #Bitcoin in economically volatile regions reached record highs in 2019.
Since 2013, volumes on Argentine peso, Hong Kong dollar, and Venezuelan bolivar bitcoin pairs have exceeded $600 billion in total value. pic.twitter.com/atKadtWjb3
— Welson 📊 (@CryptoWelson) November 1, 2019
The price of Bitcoin stands at $7,369 USD and has made a slight profit (0.71%) in the last 24 hours. It remains to be seen how the Bitcoin trade will move in Venezuela and Argentina during 2020. For now, it seems certain that the demand for Bitcoin will only increase with the economic crisis.