Cryptocurrencies step-by-step became part of everyday life for many people. Crypto money is essential for the citizens of countries that are struggling with hyperinflation. In such cases, Bitcoin, as well as other cryptocurrencies, have the potential to solve at least some pressing issues.
As a reminder, Bitcoin is the biggest cryptocurrency when it comes to market capitalization. One of the countries with hyperinflation is Venezuela. Interestingly, the country has the largest proven oil reserves in the world.
Nevertheless, millions of Venezuelans had to leave their country as the economic situation deteriorated due to internal and external factors.
The Coronavirus outbreak created additional problems for the local population. Venezuela’s President Nicholas Maduro placed the entire country under quarantine to contain the spread of the virus. It is worth mentioning that all banks will stop working for an indefinite period of time.
Nevertheless, due to cash shortages and dependence on the U.S. among other factors, locals learned how to survive without the need to visit banks on a regular basis.
Bitcoin trading and a virus outbreak
In this situation, it is not surprising that people started to use Bitcoin, as it provides a sense of stability. In Venezuela, an informal economy flourished, as people learned how to adapt to the ever-changing environment.
Bitcoin trading volume on the peer-to-peer exchange LocalBitcoins reached the highest points since the beginning of the year.
For instance, at the end of February, volume stood at around 491 BTC. Moreover, by last week, volume rose to 540 BTC.
In Colombia crypto trading also increased as can be seen from the results. In just one week during the pandemic Bitcoin trading volume rose from 289 BTC to 403 BTC.
Furthermore, in Argentina traders broke the weekly barrier of 50 BTC.
Bitcoin and other cryptocurrencies offer a number of advantages in comparison with fiat currencies. They have the ability to make life easier for millions of Venezuelans.