Cryptocurrency, Featured

Venezuela Going Crazy About Buying Bitcoin

Venezuela is showing a keen interest in buying Bitcoin, and that craze of purchasing BTC has increased immensely in the past three months. This was reported by Criptonoticias news outlet by providing data from the LocalBitcoins exchange.

It was 2017 that Venezuela went through its first cryptocurrency boom with a record volume of 805 bitcoins that were exchanged in a week. Soon after, interest in it dropped which in turn reflected in the decline in the trading volume of not more than 150 bitcoins bought per week. The trend changed again this year (between early and mid-2018) when an increase in Bitcoin investment was seen again in Venezuela, as per the data provided by LocalBitcoins. The volume of Venezuelan bolivar to Bitcoin exchange increased by 138% from between March and April. Further, it increased by 39% more from April to May.

The trend continues in the first week of June as well. The last week of May reported 4.9 trillion bolivars spent on Bitcoins. In June 1st week, the volume grew by 40.8% (6.9 trillion).
As per Criptonoticias, Venezuela’s growing interest in Bitcoin is related to hyperinflation that is taking place in the country right now. Hyperinflation in the country crossed 25,000%, in late May as boulivar kept falling, as per Forbes.

According to Similarweb, Venezuelans form the biggest share of Localbitcoins’ audience, after US and UK.

The volume of bolivars and BTC

Upon comparing BTC volumes in April and May, it can be noticed that the volume increase in bolivars is 39%, and that is due to the country’s sustained inflation situation.

The volume of the decrease in BTC exchanged indicates a drop in the buying ability of Venezuelans and also their national currency’s value since in spite of increasing the volume of exchanged bolivars, the volume of BTC has dropped immensely in comparison to 2017.

The demand and subsequent buying of Bitcoin in other Latin American countries is much lesser than in Venezuela, where apart from the inflationary process, access to foreign currency is also restricted.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Smitha Nambiar is a highly experienced writer who believes in heavy research. She keeps looking for new updates related to cryptocurrency and helps her readers know about it.

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