Bitcoin volume has taken a rise in countries like Venezuela, Argentina, and Peru along with the Philippines. These countries seem to take a liking to Bitcoin due to a number of reasons like fiat devaluation, the economic crisis among others.
Economic & fiat currency issues driving Bitcoin volume rise
Bitcoin might be inactive for the past one month now as it maintains stability above $6k mark, trading between the range of $6,100 and $6,800. With the Bitcoin volatility dropping 17-month low, many are speculating the hype just might be dying down.
However, this is not the case, especially in certain countries like Venezuela, Argentina, Peru, and the Philippines. According to the LocalBitcoins data, Bitcoin Volume in some of these countries has surged to its highest.
Venezuela is going through an economic crisis including devaluation of its national currency Bolivar and hyperinflation. According to the International Monetary Fund (IMF) report, the inflation rate of the country will reach 10 million next year.
The constantly deteriorating situation of the country is driving the people towards Bitcoin as one Redditor shared,
“Venezuelan here, a lot of people are getting into bitcoin everyday. With the crisis, everyone is looking for a way to have a stable kind of money (since the money here is useless).”
The Redditor further shared on Petro cryptocurrency introduced by President Nicolas Maduro, “Nobody I know is using petro or even knows how to obtain it. The government is using the petro as a way to laundry all the narco money in my opinion, since it cannot be traceable.”
With country suffering from high inflation that is expected to end the year at 44.8 percent, the currency is further expected to plummet against Dollar. Meanwhile, the central bank issuing peso-denominated debt with high interest rates that started with 70% as an attempt to solve the issue, according to economists is going to worsen the situation.
Recently, we shared the surge of Bitcoin ATMs in Argentina as Bitcoin exploits the fiat volatility and people turn to cryptocurrencies. Now, the Bitcoin hits highest 8.8 million in volume in the country.
Peru also saw a surge in Bitcoin volume in recent times, touching highest at over 3 million by the end of September.
Over the last few days, the Philippines is favoring the Bitcoin as in mid-September the trading volume hits about 37.5 million.
In 2017, Bloomberg reported Philippines peso predicted to be Asia’s worst-performing currency in 2018. Since the beginning of the year, inflation in the country has steadily risen. It has also been expected that in the coming months, the central bank of the country will consider increasing the interest rates that only works against the economy in the long run.