Bitcoin, the digital asset, has slashed business volume worldwide by up to 37 percent year over year. Similarly, the digital currency has increased its presence in Latin America’s digital markets. This was reported by the portal Block-Builders.de, BTC is becoming increasingly important in this region and is living up to its reputation as a currency in times of crisis.
Compared to the previous year, the global trading volume of Bitcoins fell by up to 37 percent. Where in early March to July BTC worth £ 337,300758 was traded on the LocalBitcoins platform. However, they have seen strong growth in the use of currencies in some Latin American countries, as can be seen from the infographic of Block-Builders.de.
According to the infographic, the decline in trade volume is particularly sharp in China (62.3%), Russia (51.2%) and the United States (42.8%). The trend in Switzerland was different, as transactions in this country increased by 160 percent.
With that in mind, the price trend shows that Bitcoin has increased by 22.7% and the crisis asset par excellence, gold, has only increased by 10.7% in the last six months, making the cryptocurrency one of the big winners in the six month Review.
The cryptocurrency has increased in terms of usage and transmission in regions of Latin America. Countries like Argentina, Brazil, Chile, Colombia, Venezuela, and Peru saw significant increases in bitcoin trading activity this year.
In the case of Argentina, the volume of BTC operations has doubled significantly since 2019, up 103 percent from the previous year. as reflected in the infographic. Although Argentina is the second largest economy in South America, it is in a precarious situation with an inflation rate of 53.6 percent. In early August, the Argentine government reached a debt agreement of $ 65,000 million with the country’s main creditors.
Bitcoins: Records in Argentina, Brazil and Venezuela
Meanwhile, Argentines are turning to Bitcoin in greater numbers to protect themselves from local currency devaluation as local regulations prevent easy access to foreign currencies such as the dollar or the euro.
Currently, Binance, one of the blockchain companies with the world’s largest digital asset exchange, has launched its P2P platform in Argentina to buy and sell cryptocurrencies such as Bitcoin, Ethereum, Tether, Binance Coin and EOS directly to Argentinians and investors who fund funds have in this currency.
The largest crypto on the market is delivering healthy returns in 2020, an increase of more than 60% this year as more and more investors in the South American country opt for the concept of decentralized Bitcoin.
For its part, amid the financial confusion caused by the COVID-19 pandemic, Brazil has caused the Brazilian currency to depreciate (in real terms) by more than 30% against the US dollar.
Likewise, interest rates have dropped to only 2 percent a year, which has resulted in the well-known strategy of investing in fixed income instruments being put aside to favor funds. , Stocks and possibly digital assets or cryptocurrencies. This country according to data from the Metrics site Useful tulipsrecently registered a trading volume of more than $ 700,000 in the digital currency Bitcoin, a number that will mark a new high by 2020.
Another country in Latin America where the volume of bitcoin trading has increased is the Caribbean country of Venezuela.
In a note from Cointelegraph last June The Venezuelan government’s support for cryptocurrencies was underscored by the emergence of its sovereign digital currency backed by oil reserves (Petro). This country is the pioneer worldwide in the legal introduction of a national cryptocurrency.
The country’s economic problems with a practically worthless currency (bolívar) have decided to adopt Bitcoin and have become one of the most active cryptocurrency trading countries in the world.
A recent study by blockchain data analytics firm Chainalysis shows that Venezuela ranks third in the world because it has achieved one of the highest cryptocurrency usage rates in the world as many Venezuelans rely on cryptocurrencies to receive remittances from abroad and their savings from hyperinflation to protect.
Most of the crypto activity in Venezuela is driven by peer-to-peer exchange activities (P2P), especially localbitcoins, Chainalysis noted, ranking third in USD P2P trading volume after the US. and Russia.
According to volume statistics from Coin Dance, Colombia, Chile and Peru are other Latin American countries that have significantly increased the trading volume with Localbitcoins week after week.
Latin American countries are increasingly turning to digital assets and blockchain technology to protect themselves from rapid local currency inflation, so some parts of the world with a stronger focus on Latin America continue to be the digital asset bitcoin, which is a censorship-resistant form and way of Promises stability in view of the devaluation of their national currency.