BTC trading in Venezuela reaches all-time high

07 Feb, 2019
by David Robb
News
BTC trading in Venezuela reaches all-time high

Trading of Bitcoin (BTC) has reached an all-time high in Venezuela this week. This is likely a result of the country's ongoing economic and political crisis, which is now entering a new phase.

Escalating hyper-inflation in Venezuela has caused the Bolivar to be rapidly devalued, and citizens have turned to crypto and other alternative financial systems as a way to prevent any further financial losses. The resulting instability recently caused President Maduro to be effectively ousted from his position, with opposition leader Juan Guaido now recognized by the U.S. and others as the country's head of state. 

Read more: What has the Trump-backed Venezuelan president Guaido said about Bitcoin?

TrustNodes reports that Bitcoin trading volumes in Venezuela rose above 2,000 BTC for the first time this week. Much of this trading is carried out via Localbitcoins, a Helsinki-based online crypto platform. It faciliates direct BTC transactions between individual users, with users meeting face-to-face and paying in cash, or carrying out bank transfers.

Other crypto exchanges popular in Venezuela are based in other South American nations, with trades carried out in Colombian Pesos or Brazilian Real, so it is harder to track volumes and it could be that the total BTC traded by Venezuelans is even higher than recorded.

As well as Bitcoin (BTC), DASH is a cryptocurrency that has seen a huge increase in adoption by local merchants and investors in Venezuela. 

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Read more about: Bitcoin (BTC)

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