Venezuela: Bitcoin trading volume hits all-time high
Bitcoin has been the savior for many countries that are caught up in economic turmoil. Venezuela is the prime example in this regard as it is facing hyperinflation to the tune of 1,300,000 percent annually. Its economy is on the verge of collapse. This may have led to the new high in Bitcoin trading volume because many Venezuelans are dumping the national Bolivar for Bitcoin.
Record Bitcoin Volume in Venezuela
Coin Dance reports Bitcoin trading volumes from peer-to-oeer (P2P) exchanges like Bisq, LocalBitcoins, and Paxful, which indicates that the BTC volume has been steadily increasing over the past few days. It reached its all-time high of 35.9 billion Venezuelan Bolivar, up from 29 billion Bolivar a week ago. The chart below shows the steady increase in volume over the past few months on LocalBitcoins.
Economic conditions are deteriorating day by day in Venezuela. The hyperinflation is making things worse for the people of the South American country. There were several incidents where the nation's fiat currency, the Bolivar, was thrown away on the streets just like toilet paper. US sanctions on the country may have made things even worse, as they imposed crippling economic and trade restrictions.
Venezuelans might have lost all trust in their national currency and banking system, which is why many of them have started holding value in a deflationary and borderless currency like Bitcoin. Moreover, the Bolivar has become practically worthless, which could be the reason why many of the people in Venezuela are using Bitcoin.
Nicolas Maduro, the President of Venezuela, wanted his citizens to accept the controversial oil-backed cryptocurrency Petro. The country desperately needed new foreign funds flowing into its borders and Maduro's administration had claimed it would help Venezuela's economy if more transactions were conducted using the Petro. However, the people of Venezuela do not seem to trust Maduro or his administration and they are not confident that the Petro is a legitimate cryptocurrency. On the other hand, many Venezuelans appear to be increasingly using Bitcoin.
The National Television in Venezuela openly started talking about the benefits of Bitcoin and its various properties such as "Borderless," "Secure," "Unconfiscatable" to name a few. One of the Venezuelan citizens also revealed how the local peer-to-peer (P2P) Bitcoin exchange saved his life multiple times.
It is not only Venezuela's Bitcoin trading volume that's been surging, but BTC trading volumes are rising throughout the world, especially in countries facing an economic crisis like Argentina and Columbia. These nations saw substantial volume spikes. Bitcoin is very popular among South American countries like Peru, Mexico, and Chile and there also we were able to see a slight spike in the Bitcoin volume.
However, Venezuela and Zimbabwe are perfect examples of how a state currency can become completely useless due to poor and mismanaged economic policies. These countries are also an example of how Bitcoin becomes a savior in helping people store and protect their wealth.
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Originally posted on Crypto Insider : https://cryptoinsider.com/venezuela-bitcoin-ath/