Bitcoin Trading Volumes in Venezuela Continue to Climb

Bitcoin volumes in Venezuela continue to outperform other troubled countries. 2019 LocalBitcoins volume: Venezuela – $305.93MColombia – $134.22MPeru – $45.54MHong Kong – $21.73MChile – $13.84MArgentina – $11.94MIran – $5.81MEgypt – $1.40M pic.twitter.com/0EymoY1y54 — Larry Cermak (@lawmaster) January 26, 2020

Bitcoin initially made its way to Venezuela through cryptocurrency enthusiasts and miners who were able to secure almost free electricity subsidized by the government. As the currency crisis progressed, mining was actually outlawed for a period, before becoming legalized and sanctioned by Venezuelan authorities who initially opposed cryptocurrencies. The government changed its tune last year with the announcement of the Petro, the first government-backed and issued cryptocurrency. As capital controls were put into place to try to stave off a massive capital flight, many Venezuelans began to see the benefit of Bitcoin’s censorship-resistant properties to move money around, including across borders. Bitcoin is also now being used (along with the black market in foreign currencies like the Dollar and Euro) to purchase goods and services domestically, as well. Many Venezuelans have moved out of the country to seek better opportunities elsewhere, so there is also a large diaspora that utilizes Bitcoin as a cheap and direct way to send money back home to family members still affected by the crisis. If hyperbitcoinization does occur as Bitcoin advocates claim, and BTC becomes a global reserve currency, we may see Venezuelans impacted by the crisis, go from being one of the poorest nations to becoming one of the wealthiest nations on earth as Bitcoin’s value goes parabolic. What do you think about bitcoin’s demand in Venezuela? Do you think BTC can help people beat hyperinflation in the country? Let us know your thoughts in the comments below! 

Images via Shutterstock, Twitter: @lawmaster The post appeared first on Bitcoinist.com.

source: https://bitcoinist.com/bitcoin-trading-volumes-in-venezuela-continue-to-climb/

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