First nation adopting Bitcoin as legal currency.(not the one you think)

 

Today bitcoin exchanges surpassed the gold exchanges in brazil.

Lets just take  a quick history lesson.

If you go back to about 1989 some people might know that there was a huge crash in Russia which actually made people use cigarretes as currncy because people jst did not trus their coin and cigarretes had more stable purchasing power.

If people lose faith to their currency they will always go to Gold,but if that is to expensive they will look for something else.Also they need ways to store gold and find trustworthy brokers.

 Back to the Brasil case,now people feel like their currenxy can not be trusted.The whole point is that if the country is at risk they need to store their value to something they feel is more stable. 

Brazil Warms up To Bitcoin Trading

This trend got stronger as the year 2016 progressed, with Bitcoin trading reaching twice the value of gold trading in that month.But what is driving Brazilian customers and investors to Bitcoin all of a sudden? Gold is an excellent store of value, and its value appreciates over time due to scarcity.Bitcoin is gaining in popularity all over the world, and Brazil is no exception to this trend. BitValor, a website tracking the Bitcoin trading volume in the whole country, there is a significant trading volume increase compared to all of 2015. Albeit 2015 was successful, exchanges had reported a R$113m trading volume over the course of twelve months. The year 2016 is a 45% increase in numbers, and we are only halfway the 12-month period. Moreover, the first semester of 2016 saw a Bitcoin trading volume equal to the previous three years combined across all Brazilian exchanges.While these numbers are still small compared to the rest of the world, it goes to show developing countries are keen on Bitcoin. Bitcoin is designed to make an impact in regions where financial access is very limited. Brazil, together with a lot of other countries, can reap the benefits offered by Bitcoin.Despite these strong numbers in Brazil, gold remains an asset with higher trading volumes compared to Bitcoin. The London Bullion Markets Association reports how there is an average daily trading volume in gold of US$20bn. Bitcoin, while only seven years old, sees an average daily volume of US$1.5bn. This is quite significant for the cryptocurrency, though, as it has often been referred to as “fake internet money”.For the time being, it is unknown as to where this sudden interest in Bitcoin trading is coming from. Brazilian traders may show a new appreciation for cryptocurrency all of a sudden; that is certainly possible. But residents are seeing trouble brewing on the horizon as well. Bitcoin is a solid way to diversify a portfolio; that much is impossible to deny.  

 There are other interesting cases like South Sudan,Venezuela or Kenya which have been making interesting moves to Bitcoin.