Recently, Larry Cermak of the Block tweeted that the trading volumes of Bitcoin continued to rise in Venezuela. In his tweet, Cermak also mentioned that countries like Colombia, Argentina, Turkey and Iran had also seen an increase in bitcoins volume.
Bitcoin volumes in Venezuela continue to outperform other troubled countries.
2019 LocalBitcoins volume:
Venezuela 🇻🇪 – $305.93M
Colombia 🇨🇴 – $134.22M
Peru 🇵🇪 – $45.54M
Hong Kong 🇭🇰 – $21.73M
Chile 🇨🇱 – $13.84M
Argentina 🇦🇷 – $11.94M
Iran 🇮🇷 – $5.81M
Egypt 🇪🇬 – $1.40M pic.twitter.com/0EymoY1y54
— Larry Cermak (@lawmaster) January 26, 2020
According to the reports, the cryptocurrency enthusiasts and miners who were able to secure free electricity, which the government has subsidized, helped the Bitcoin to make its way to the country. Earlier, the Venezuelan Authorities opposed trading of cryptocurrencies in the country, but as it faced a currency crisis, the authorities decided to legalize and sanction trading.
Bitcoin Becomes Escape Route For Venezuela
From the past several years, due to extreme inflation, the value of Venezuela’s native currency was going down, and during that time the cryptocurrencies were becoming a trend around the world. The Venezuelan Government got inspired by the idea of cryptocurrency, therefore, it decided to create its own oil supplies backed cryptocurrency, named Petro. The Bitcoins could be used to move the money anywhere around the world because of its censorship-resistant properties. At present, apart from cross-border trading, the bitcoins were being used within the country to buy goods and services.
As Venezuelans have started using cryptocurrency, therefore, it became easy for the people living outside the country, to send money back home to their families, who were still affected by the crisis.
Currency Crisis-Hit Venezuela
Before the crisis-hit Venezuela, it was one of the wealthiest countries in Latin America. Its massive oil reserves were the largest in the world. But as the oil prices began to decline, the country started facing economic problems. As the economic crisis hit the country, the government decided to monetize its debt through inflation. According to reports, Venezuela might again become one of the wealthiest countries from being the poorest nation. A Bitcoin advocate has claimed that if hyperbitcoinization occurs and BTC becomes the global reserve currency, then Venezuela’s economy would rise.