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High Inflationary Economies of Venezuela and Argentina are Driving Cryptocurrency Adoption across Latin America

Oct 16, 2018

 

  • Bitcoin (BTC) weekly trading volume through the Venezuelan Sovereign Bolivar (Bs) continues to reach all-time highs after Venezuelans traded Bs903.57 million of BTC in the 7-day week ending 10/13/2018.  
     
  • Bs903.57 million of BTC trading volume for the week ending 10/13/2018 represents a massive 210,070% increase in BTC trading volume through the Venezuelan Sovereign Bolivar since the same time last year. 
     
  • In Argentina, BTC trading volume through the Argentine Peso (ARS) set an all-time high last week, reaching ARS8.83 million of BTC trading volume for the 7-day week ending 10/06/2018 -- most recently, BTC trading volume in Argentina was ARS7.47 million for the 7-day week ending 10/13/2018 
     
  • Last week’s ARS8.83 million of BTC trading volume represents a 346% increase in BTC trading volume through the Argentine Peso since one year ago. 
     
  • Spikes in BTC trading volume in Latin America countries can be attributed to high inflation rates in Argentina and Venezuela -- in Venezuela, economists forecast inflation of the Sovreign Bolivar to reach 1,400,000% by the end of 2018. In Argentina, the Argentina Central Bank has raised interest rates to 60% while inflation of the Argentine Peso currently sits at 25.4% for 2018.   
     
  • The increase in BTC trading volume in Venezuela and Argentina comes just weeks ahead of the launch of Venezuela’s state-backed cryptocurrency, the Petro. Investors should keep a close eye on how Venezuelans adopt cryptocurrencies upon the Petro’s launch on November 5th -- will the Petro receive wide-scale adoption across the country, or will Venezuelan’s keep faith with Bitcoin?  
     
  • Continued adoption of cryptocurrencies in locations undergoing high inflation or further economic turmoil may prove to be a long-term driver of value in cryptocurrencies while paving the way for adoption in stable economies. 

 

Source: Coin.dance