New LocalBitcoins 2019 Data Shows Venezuela’s Staggering VES/BTC Buying and Trading Volumes
Venezuela shows that Bitcoin (BTC) is helping individuals in the country face the economic and social problems that affect the South American nation. According to data provided by LocalBitcoins, during the first two months of the current year, Venezuelans purchased around $63 million in Bitcoin.
During 2018, the weekly trading volume of Bitcoin increased to reach new highs a few weeks ago, when Venezuelans traded more than 2.4k BTC in just a week. Now, the number of BTC transacted is stable at around 2k BTC per week. Back in January 2018, Venezuelans were just purchasing 200 BTC per week.
Venezuelans have experienced hyperinflation for several years and things are not getting better. To the weak economic situation, we now need to add political uncertainty after the illegitimate president Nicolas Maduro does not want to leave the power, even when the National Assembly voted for Juan Guaidó as the president of the country.
Maduro has also introduced a new 15% fee on Bitcoin remittances to be able to receive some funds to keep pushing for socialist and communist policies in Venezuela. Nevertheless, his power is completely diminished and a change in the leadership seems imminent.
Venezuela has also launched its own digital currency called Petro. Nevertheless, this digital asset has not yet been introduced to the economy and has no real-world applications. Indeed, countries such as Poland and Argentina rejected it as a means of payment for goods and services.
The main question is what will happen with Bitcoin trading volumes if the situation changes in Venezuela. If inflation drops and official channels to transfer funds are re-opened, Bitcoin trading volume in the country could experience a drop.