Bitcoin (BTC) Trading Volumes Hit a New Record in Venezuela
Venezuelan crisis has been widely heard off even before resident Nicolas Maduro announced the issuance of Petro dollar, the cryptocurrency that is said to solve inflation problems in the country.
Venezuela, however, might still be holding an ace in its sleeve given the fact that Maduro announced weeks ago that Venezuelan oil reserves should become available for trade in exchange for Petro dollars already in 2019.
In the meanwhile, Venezuelans are already using cryptocurrency investments as a way of escaping inflation destroying country’s economy, mostly investing in the top digital asset, Bitcoin (BTC).
After shortly going above the value of 4,000$ and progressing to0wards 5,000$, Bitcoin once again dipped to take a revisited low of 3,900$.
However, despite the bear trends in the market, Bitcoin losses seem nothing compared to what is happening to the native currency of Venezuela, bolivar.
Venezuelans Increasingly Investing in Bitcoin (BTC) Despite the Bear Trends
Due to the reports released back in July 2018, the inflation in Venezuela was on the road towards hitting 1 million percent, now being close to reaching a stunning level of hyperinflation while people in Venezuela are already feeling crisis for some time now.
To present the picture of how bad the state of the economy in Venezuela is, the inflation level in the United States is 2.2%.
Even in the neighbor countries like Peru and Chile, levels of inflation are not going over 3.7% and 3%.
That is how Venezuelans are turning to cryptocurrency investments, while President Maduro is looking for a way out by issuing an ICO that is to become the official digital currency of Venezuela.
With the latest results from LocalBitcoins exchange, during the week of December 15th and December 22nd, the trading volume of Bitcoin hit the by far record number, marking 1,974 BTC units during the period of only seven days.
Only a week before, the trading volumes of BTC on LocalBitcoins equaled 1,743 BTC, which means that the volumes increased by 11% in the course of a week.
It is no wonder that there are more Bitcoin investors coming from Venezuela, especially lately, as even despite the fact that Bitcoin lost -80% of its value during the course of a single year, the national currency of Venezuela is losing -95% from day to day, leading the country into a degrading economy and hyperinflation.
Venezuelan Inflation Possibly to Hit 10 Million Percent by the End of 2019
Even though the inflation is already bringing major pressure to the Venezuelan economy, it is predicted that by the time 2019 ends, the inflation may reach 10 million percent.
In the meanwhile, President Maduro is hoping that Petro dollar could at least diminish a portion of the effects that the inflation is creating.
Maduro believes that the US dollar is being used as a political tool and not a currency you can exchange, which is bringing inflation to the affected countries in the first place, referring to the fact that the Venezuelan bolivar is not the only national currency hit by inflation.
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