LocalBitcoin Data Suggests Argentinians and Venezuelans Are Entering the Market During the Current Dip
Virtual currencies have been in a bear trend since the beginning of the current year. Bitcoin, for example, has been operating 80% down from its all-time high in December 2017. However, there are some countries such as Venezuela and Argentina that are ‘buying the dip.’
According to data provided by LocalBitcoins, Venezuela has registered a record in the number of Bitcoin transacted during the last week. The number reached 1,618 BTC, an absolute record for this country with an hyperinflation and an economic crisis. The case of Argentina is quite similar. It has registered the highest number of Bitcoins transacted in more than a year (65 BTC).
Both countries have also registered an increase in the number of fiat currencies transacted in Bitcoin during the last weeks. Venezuela has been experiencing a hard crisis in the last years due to socialist measures and an authoritarian government. Inflation rates do not stop growing and individuals in the country are expanding to other nations such as Argentina or Colombia.
During this year, Argentina has also experienced a currency crisis. Although the situation experienced by Argentina is not even close to the one experienced by Venezuela, it has pushed the peso to lose more than 50 percent of its value in just a few months.
In Venezuela, the number of merchants and individuals using virtual currencies has been growing during the last few years. Indeed, Venezuelans have been mining digital assets but the government took different measures to avoid this to happen in the country.
During a conversation with Bitcoinist, Rodrigo Marques, the CEO of Atlas Quantum, commented:
“Look at the countries in Latin America, especially Venezuela and Argentina. It’s very hard for people to move money outside of these countries and people see bitcoin as a way to protect their investments. So it’s not just a matter of it’s faster and more stable, but making it possible for some people in some place to actually hold on to what they own, protecting their wealth.”
There is an Argentinian bank that has decided to embrace Bitcoin to send international payments in a cheaper and faster way.
The number of crypto ATMs in Argentina is expected to grow in the near future and reach a number close to 30. However, at the time of writing, there are just four ATMs.
This shows that Bitcoin can be very helpful in countries in which currencies do not work as they should and they do not protect citizens. Bitcoin provides new tools for users and individuals allover the world.