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.
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.