Bitcoin Demand in Economically Volatile Countries Reaching Record Highs

Peer to peer bitcoin trading has been soaring to new highs in country's where economic uncertainty persists as bitcoin and crypto assets look to provide a safe haven

  • Peer-to-peer trading platform LocalBitcoins saw its highest volume in 2015 at 39,496 in mid-October when BTC was trading at $250.

Established in 2012, the platform has been a popular peer-to-peer exchange has been seeing a serious drop in its trading volume since May 2019. This decline was triggered by a slump in BTC price that was registered on other exchanges as well.

Source: Coin Dance

Another reason for this drop could be the popular platform tightening the KYC/AML measures. As per the requirements of new Finnish law, LocalBItcoins implemented new user verification procedures, that came into effect on Sep. 1.

On exceeding an annual trading volume limit (for instance, 1000 euros) users need to go beyond providing their name, phone number, email, and country of residence and complete the KYC procedure that asks for an identity document.

Last June, the P2P platform also scraped the option of buying and selling BTC in person that could have been another factor contributing to this slump.

However, it remains a popular choice in countries like Russia, Venezuela, Nigeria, Argentina, Colombia, and Hong Kong where it is recording great volume increases. Commentators claim this is because Bitcoin is used as a hedge against inflation and economic volatility in those countries.

In November, LocalBitcoins registered another record volume in Argentine Peso.

Other countries that also has also been recording an uptick in demand for BTC on LocalBitcoin in the last few weeks include Chile, Dominican Republic, and South Africa.

Recently, while celebrating Bitcoin’s 11th birthday, Coinbase released a report where it noted that demand for bitcoin in regions that are economically volatile have been seeing new highs in 2019.

LocalBitcoins experienced premium prices and surge in volume in Venezuela, Argentina, and Hong Kong, regions that experienced high economic volatility this year. While Venezuela and Argentina’s economies are being wracked by capital controls, corruption, and inflation, Hong Kong is going through political dysfunction.

When it comes to the largest markets on the platform by volume, Russia is in the lead. Other countries on this list are the USA, China, the UK, Nigeria, Venezuela, Colombia, Australia, India, and South Africa.

Bitcoin Weekly Trading Volumes since 2017. Russia and Nigeria 🧐🧐 from Bitcoin

The fact that the world's leading cryptocurrency is a deflationary asset, it makes sense that these countries would take special interest in Bitcoin. Additionally, countries like Nigeria also find BTC a lucrative low-cost option when sending money to their families across borders.

Bitcoin as a hedge against currency inflation, economic volatility, political turmoil, and central bank policies has been gaining traction over the years. And the above-mentioned data validate Bitcoin as a sound form of money.

Live Bitcoin (BTC) Price:

1 BTC/USD =$11,318.4578 change ~ 2.09%

Coin Market Cap

$208.83 Billion

24 Hour Volume

$5.78 Billion

24 Hour VWAP

$11.27 K

24 Hour Change

$236.8767

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,470FansLike
2,795FollowersFollow
4,233FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today