Venezuela Sets New Bitcoin Volume Record As Inflation Rises To Over 10,000,000%

The dire economic situation in Venezuela continues to drive its inhabitants to use more and more Bitcoin. Last week, the country has achieved a new all-time high trading volume and has traded more bolivars, the local fiat currency, for Bitcoin than ever before.

Click to see the full-size image – Source: Coin.dance

This data comes from Coin Dance, which tracks Localbitcoins, Bisq, and Paxful, some of the most popular P2P trading platforms available in the local market. According to the data, last week hit record highs as 57 billion bolivars were traded. In the previous week, 49 billion bolivars were traded.

Does this mean that the country is using more and more Bitcoin? Not exactly. The main reason why the numbers keep going up is that the country’s fiat currency is suffering from hyperinflation. The bolivar’s inflation has reached 10,000,000% recently, a number that was never seen before in the local economy.

As people got their salaries and lost almost everything, most of them are trying to use new ways of storing value and Bitcoin is the perfect answer for that.

Another reason why people decided to go for the decentralized solution is because the local crypto trading might not be officially supported, but foreign currency suffers from embargoes, so it is easier to use decentralized P2P solutions instead of buying dollars, for instance, because you have alternate channels which are easy to use.

It should be noted, though, that there is a plain catch here: while the volume on the bolivar side keeps growing, less BTC is being bought. This means that the trading is actually going down despite the numbers going up. This says more about the local fiat currency being really weak than about Bitcoin being strong there.

In any case, it seems like we are far from a time in which Venezuela will actually stop using Bitcoin. The economy does not seem to be getting better at all and there is no solution in sight for the rampaging inflation.

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.

Avatar
Gabriel Machadohttps://bitcoinexchangeguide.com/
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[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

3,466FansLike
2,795FollowersFollow
4,236FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex Offers $400M Reward For Info on 120k BTC Stolen in 2016; Hackers Can Collect Too

On August 2, 2016, Bitfinex experienced one of the biggest crypto heists of all time, as hackers exploited the system, running off with approximately...

Crypto Trading Platform, 2gether, Unable To Refund $1.4M Hack; Offers Its Native Tokens

Spanish cryptocurrency trading app, 2gether announced on Sunday the platform faced a hack on July 31 on its investment coffers losing €1.183 million ($1.4...

Venture Fund to Invest Majority of $100 Million Raised Fund in DeFi Protocols

San Francisco-based venture fund Electric Capital has raised $100 million from university endowments and other non-profits and it will be using this to invest...

Filecoin to Begins its Incentivized Testnet This Week Ahead of Project Launch Next Month

Crypto project Filecoin which proposes to create a peer-to-peer storage system, will begin its incentivized testnet this week. This testnet will allow users to...

Ethereum 2.0 Final Testnet, Medalla, Rolls Out; Is A 2020 Launch Now In Sight?

The Ethereum 2.0 Phase 0 Medalla public testnet finally went live on August 4, 2020 at around 1AM GMT giving hope of a possible...

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