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Venezuela recorded its biggest bitcoin volume leap in the last week with 1,974 BTC traded on LocalBitcoins.
Venezuela sees the biggest leap in the Bitcoin volume to date
As word spreads on the worsening of the humanitarian crisis in the richer country of oil in Latin America, bitcoin peer-to-peer purchases are on the rise.
This week saw a jump of 11% from 1.743 BTC of the week from December 15 to 1.974 BTC of the week of December 22nd, the highest ever recorded on LocalBitcoins.
One million percent of inflation
Bitcoin is a volatile resource. Even the most stunned idiot of all hodlers must admit that they are sometimes nervous. However, even when observing drastic statistics like the bitcoin that loses 80% of its value in 12 months, it becomes insignificant compared to a national currency that has lost 95% in value from one day to the next.
The IMF reported in July that the Latin American country was on track to reach an inflation level of one million percent by the end of this month. To give you some context, inflation in the United States is 2.2% and the recent Federal Reserve increases have caused a tough round of kickbacks from businesses, and even President Trump said the Fed was "crazy".
In neighboring Chile and neighboring Peru, inflation is expected to reach 3% and 3.7% respectively. In that context, therefore, it is not surprising that bitcoin is an attractive alternative to a national currency that is about to run out, except for toilet paper, which is scarce in this South American nation.
And if you thought that a million percent was out of control, that figure could reach even 10 million by the end of 2019. The director of the Western Hemisphere Department of the International Monetary Fund, Alejandro Werner, confirmed:
Yes, 10 million percent because prices in Venezuela double or triple each month. And this, when you take it to 12 months, generates an exponential rate of inflation.
He added that the Venezuelan economy (already in tatters) had contracted 50 percent in the last four years.
Venezuelans buy increasing Bitcoin
If this last leap has been fueled by the fact that pensioners are forced to receive their funds in Petro's national cryptocurrency or simply because of the devaluation and deluge in progress on the roads is unclear.
The increase in the oil crisis in the region as Exxon starts drilling for oil in neighboring Guyana could also be a factor. Perhaps the word about bitcoin as a safer alternative for these people is simply coming out.
Who else is buying Bitcoin?
In contrast to Venezuela, there was a slight decrease in the amount of US citizens buying bitcoins this week by about 2.7%, while the United Kingdom saw an increase of just over 1% for the week.
Without a doubt, Venezuela registers the biggest leap forward with Colombia, which also saw an increase of 11%.
Despite a request by President Maduro for the Venezuelans to "stop cleaning toilets" abroad and return to their country, many Venezuelans have been forced to flee across the border with Colombia and are simply too fearful to return: the civil militia is now 1.6 million strong people
In a country where bills are scarce and depreciate at a dizzying rate, human rights are at their lowest point, people are coming down the streets and talking against Maduro could make you end up in jail (as your wealth fades in front of your eyes), it is not surprising that the Venezuelans who buy bitcoins have reached their all-time high.
And for this poor people who have gone through so much misery and human suffering, we hope that the next bull run will come soon and give them the power to rebuild.
Does the purchase of Bitcoin continue to rise in Venezuela? Share your thoughts below!
Images courtesy of Shutterstock, Coin.dance
