Bitcoin Trading Volumes Reach All-Time HighsThe final days of 2019 saw record levels of Bitcoin trading in both Venezuela and Argentina, reaching $25 million and $545,000 respectively. Data from Coin Dance shows a consistent rise in volumes in both countries. The continual increase is indicative of strong support for the digital currency. The use of cryptocurrencies in countries with high inflation has been a major talking point in pro-cryptocurrency discussions. The ease with which donors from all over the world can send those living in these countries has helped cryptocurrencies gain more of a spotlight. The United States has imposed sanctions on Venezuela, which has already suffered from immense economic pressure. One Satoshi (0.00000001 BTC), the smallest unit of Bitcoin, is almost equal to one Venezuelan Bolivar, a staggering remark on the state of the nation’s economy. The Venezuelan government has also taken an interest in Bitcoin, as the state-owned oil company Petroleos de Venezuela SA (PDVSA) is attempting to utilize Bitcoin and the central bank to circumvent these sanctions.
While Challenges Remain, Cryptocurrencies Are Gaining LegitimacyVenezuela has been considered something of a testing ground for Bitcoin, with discussions centering around the fact that Bitcoin could replace fiat currencies in inflationary economies. While Bitcoin has been seen as a good hedge against traditional assets and has achieved a great deal since its inception, it still has a long way to go in terms of becoming a recognized global currency. Lawmakers across the world are still forming regulations for the asset class, though multiple countries have stated in the past few months that they would be taking a closer look at cryptocurrencies and their value in the new decade.
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