Countries that suffer rapid inflation show a significant demand for cryptos
The cryptocurrencies have had an upward trend in the price in recent weeks, but in certain countries of the world digital assets have become much more valuable. For example, in Argentina, the sovereign currency of the nation has lost considerable value and cryptocurrencies such as Bitcoin are registering record highs in prices. The increase in value is not only occurring in Argentina, since other countries suffering from hyperinflation are also experiencing significant demand.
High demand for cryptography comes from countries that experience high inflation and devaluation of the currency
During the last week, supporters of the digital currency have realized that the price of the bitcoin kernel (BTC) and some other popular assets have experienced an increase in prices in some markets compared to the rest of the world. The trend has been observed in countries suffering economic difficulties and hyperinflation, an accelerated version of traditional inflation. Essentially, the state’s currency begins to erode extremely rapidly and the prices of goods such as food and medical supplies increase. Due to this factor, the citizens of the region generally change to more stable foreign currencies to protect themselves against rapid inflation. Crypto supporters have noticed that this happens with digital assets and recently people have observed the high price of BTC in Argentina. Against the Argentine peso, the value of the bitcoin core has skyrocketed considerably and even surpasses the historic maximum of 2017.
Currently, the price for BTC is 390,719 pesos in Argentina and the trade volumes of Localbitcoins have also reached a historic high. During the first week of May, Argentine localbitcoins volumes reached $ 13 million and trade has continued without rest. The Argentine peso has experienced a massive decline against the US dollar and economic uncertainties derive from the country’s upcoming leadership change. However, the same trend is taking place with some other failed currencies, such as the Venezuelan bolivar, the Sudanese pound and the Turkish lira. And there are other countries like Colombia, Chile and Russia that are experiencing higher volumes of cryptography and more demand than usual. In addition, places like Argentina and Venezuela are also seeing a demand for bitcoin cash (BCH) in the last 30 days.
In Localbitcoins, the Turkish lira has experienced steady growth in the exchange and prices show that the value of BTC is also close to the 2017 highs. At the time of publication, 1 BTC is about 52,577 Turkish liras and there has been between 500,000 and 750,000 volumes of Localbitcoins in recent weeks. Throughout 2018 and 2019, the Turkish economy has experienced rapid inflation and the lira has seen a decline in value against other currencies. In addition to the lira, the Sudanese pound versus BTC have also increased dramatically.
At the time of publication, a single BTC is 393,650 Sudanese pounds and liquidity is extremely low in the region. Venezuela is also in the same circumstances in which the country’s inflation rate of 1.30 million percent as of April 2019 has wreaked havoc on the sovereign bolivar. During the last weeks of Localbitcoins volume data, the country continues to break records of all time. According to the current exchange rates at the time of printing, 1 BTC is 49,117,302 bolivars. Venezuela has been given much attention because the country has the highest inflation rate worldwide, but there are some other countries that follow similar paths. Together with BTC, cryptography advocates have also been promoting BCH in these regions, with a lot of attention focused on Venezuela’s difficulties.
Launch of Local.Bitcoin.com and Bitcoin Cash Venezuela Merchants Initiative
The supporters of Bitcoin Cash have been in Venezuela promoting the use of the decentralized currency regularly. At Bitcoin.com we recognize the need for people to exchange fiduciary currencies for cryptocurrencies without permission and that is why we created Local.Bitcoin.com. People from all over the world can exchange cash and bitcoin cash (BCH) with each other in a peer-to-peer manner when our Local BCH non-custodial exchange is launched on June 4, 2019.
Bitcoin cash gives any global citizen the freedom to escape from the erratic behavior of centralized fiduciary currencies. And low transaction rates that are below a penny underscore that BCH is superior for remittances. In addition to the non-prescription exchange that will take place next week, Bitcoin.com has also promoted the adoption of merchants with our Bitcoin Cash Venezuela initiative. Our commercial adoption effort in the country aims to help retailers accept a new means of digital exchange and, at the same time, escape from the devaluation of the bolivar.
The demand for cryptocurrencies has grown considerably in the last decade, but in recent years the interest from regions suffering severe economic difficulties has skyrocketed considerably. There is a great need for digital assets without permission as BCH in countries where the currencies issued by the state are becoming useless, capital controls are imposed and the sanctions of oppressive leaders make economic participation more difficult. It is likely that at any time global citizens who really need a reliable means of exchange will turn to digital assets that can provide the means to fulfill their purposes. People need alternative forms of money and especially one that works. Interest in a cryptocurrency that can provide an exchange without permission, along with reliability, will surely outpace the speculative group of investors who are asking institutional rates to come on board. It is evident that the citizens of Argentina, Turkey, Venezuela and other countries are showing a strong demand for assets without permission and this will only continue to grow.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.