What does the new historical maximum in Bolívares of LocalBitcoins in Venezuela reveal?
During the week of August 25 to 31, trade from Venezuela through LocalBitcoins reached a new historical maximum of bolivars exchanged for bitcoin. In fact, the figure of VES 116,870 million represents an increase of more than 50% with respect to the historical maximum that preceded it, recorded the previous week.
At that time, the number of bolivars exchanged for bitcoin on that platform was barely higher than the VES 77.4 billion, as can be seen through the Coin Dance market tracking portal.
The site also reflects that in LocalBitcoins there has been no significant increase in the volume of BTC exchanged by Venezuelan users. This week alone, which ended on August 31, in fact, exceeded 500 BTC, after 3 weeks with volumes below that figure. Current weekly volumes are around 80% less than the historical maximum, recorded during the week that ended on February 2. More than 2,470 BTC were traded for that 7 day period.
The slight increase in negotiated bitcoins does not correspond to the new historical figure reflected in bolivars. What this milestone does demonstrate is the devaluation of the Venezuelan national currency with respect to other currencies, such as the dollar and, in this case, bitcoin.
The price of BTC in bolivars jumped between the end of July and the end of August of this year. In total, the increase was close to 94%, according to Yadio data. If we extend the period until Tuesday, September 3, that price has doubled. The last days of July, a bitcoin was equivalent to about 112,000,000 VES. This Monday, September 2, the value stood above the 230,000,000 VES, in Yadio figures.
Just a few days ago, the minimum fraction of the cryptocurrency, satoshi, exceeded 2 bolivars. Calculations based on the value reflected by Yadio for this Monday, place the value of each satoshi at more than VES 2.3.
Venezuela’s annual inflation rate exceeds 933%, measured in the last 3 months. This is reflected in the “index of coffee with milk”, a measurement implemented by Bloomberg to assess the behavior of Venezuelan inflation based on the price of a cup of coffee in the streets of the South American country.
The increase of more than 50% in bolivars exchanged for bitcoin during the last week also coincides with two specific factors. On the one hand, bitcoin regained ground against the dollar in recent days, with an increase of more than 4%, according to Live Coin Watch data.
On the other hand, the exchange rate between the bolivar and the USD also underwent significant changes. According to Yadio, in the last two weeks the rate went from VES 15,333 to VES 23,470 per dollar. However, other markers of the price of the Venezuelan parallel dollar place the US currency already above the 24,000 VES.
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