Trading volume on LocalBitcoin for certain countries has substantially increased in the last months. In Venezuela, Egypt, and Argentina, the popular cryptocurrency has seen a marked increase in demand. Analysts have related this to the instability these nation’s are facing economically.
Demand for Bitcoin Increases in Unstable Countries
Argentina and Venezuela can be targeted as economically not stable countries. Both have very high inflation rates and long-term economic problems. Egypt is a different case since there is no major crisis in the country.
In Argentina, the local currency (ARS) has lost over 60% of its value in the last months. Since the end of March, the number of Bitcoins transacted in LocalBitcoins in Argentina increased from 13 to 33, 153% in a few months.
In Venezuela, the situation is much more impressive. Since the beginning of the year, the number of Bitcoins transacted in LocalBitcoins moved passed from 244 to 1090. This represents an increase of 346% in less than a year.
Clearly, the crisis in Venezuela is hurting everyone. But Bitcoin and cryptocurrencies are already a matter of life. Those individuals that had the possibility to mine virtual currencies are currently surviving with the earnings they have. However, the government has been trying to seize mining rigs and GPUs. Indeed, GPUs imports are already closed in the country.
In Egypt, the situation is quite different. The country is not experiencing a devastating economic crisis as in Venezuela. Nonetheless, the number of Bitcoins transacted in LocalBitcoins has also spiked in the last weeks. Back in January, Egypt was trading 2 BTC per week in Local Bitcoins. The number increased to 9 BTC transacted in the last weeks.
Around the world, the number of BTC transacted has remained stable throughout the year. In general, the number of Bitcoins transacted per week is close to 8,000 BTC. Back in 2015, the number of Bitcoins transacted reached a record high in LocalBitcoins. Almost three years ago, on October 10, 2015, the number of Bitcoins transacted in just a week was 39,137.
Countries that have stable economies do not need to search for better alternatives. However, Bitcoin and other virtual currencies are deflationary. In countries such as Venezuela with inflation rates that are close to 10,000,000 million percent, Bitcoin becomes much more valuable.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
