Bitcoin Volume In Venezuela Increases At Record Numbers

Venezuela has recently experienced the biggest spike in Bitcoin volume over the last week. Never before people used so much Bitcoin (BTC) in Venezuela, a country that is currently plagued by hyperinflation that is destroying its economy.

P2P purchases and transactions are on the rise as the Venezuelan crisis only gets worse and the inflation does not seem to go down ever again. This week saw an increase of 11% in the use of Bitcoin with 1,974 BTC being transferred this week. This is the highest activity that the country has ever seen for BTC in its history.

While people call Bitcoin to be volatile, the truth is that losing like 80% of its value during a year is basically nothing when you compare to losing 95% of its value in a single day. That’s right, this is what is happening to Venezuela’s fiat currency. The national money of Venezuela is basically doomed.

This month, Venezuela will hit yearly inflation of one million percent. The inflation in the United States, for instance, is about 2.2% and the inflation of neighboring countries like Brazil and Argentina (both deep in an economic crisis) are, respectively, will end up in 4,5% and 47,5%. Some more stable countries like Chile and Peru have inflation of around 3% both.

According to reports from experts in the area, the inflation could reach 10 million percent at the end of 2019 if the problems are not solved. Prices are doubling or tripling every month and this generates an exponential growth rate for inflation, which is very bad for the country.

To make things even worse, the economy of the country has shrunk at least 50%, which proves that the economy of the country will remain bad for a long time.

In fact, the crisis is so harsh that a lot of people are fleeing the country and are very fearful to return. With almost no money and a lot of people starving, Venezuela has hit a really sad point in its history.

Unfortunately, most of the reasons behind the move are unclear. Is it because some people need to receive in the national failed cryptocurrency, the Petro? It is because it’s Christmas? Maybe the oil crisis could also be a factor.

The fact is that Bitcoin is more popular than ever now in the country and more people know that it is a very safe alternative to get paid.

US citizens are following the opposite trend of Venezuela and buying less Bitcoin, something that could be expected because of the whole market crisis that has struck the market this year. A devaluation of 85% in a year is huge when compared to 2,2%.

Colombia is also buying more Bitcoin now and Argentina, with high inflation, also follows the trend.

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