Good for BTC: Bitcoin trading volume continues to grow in troubled economies

The notion that Bitcoin can work like a safe haven or a hedge against a sluggish global economy continues to be discussed in depth. The benefits of cryptocurrency can be clearly seen in the trading volume in countries whose economies are already under pressure – for example in Venezuela and Hong Kong.

In several countries plagued by the crisis, citizens are concerned because hyperinflation and other geopolitical reasons mean that their savings and general currency stocks are rapidly diminishing. 

The unrest in Venezuela, the economic difficulties in Argentina and the government protests in Hong Kong have led citizens to look for alternative investments.

LocalBitcoins peer-to-peer bitcoin trading platform data says the increase in trading volume is most noticeable in countries with troubled economies, particularly in South America. If you compare 2019 with 2018, it shows that the Bitcoin trading volume has increased with the emergence of economic problems.

Big problems in the country

The major news channels reported extensively on the issues facing Venezuela in 2019. Nicolas Maduro’s socialist regime faced civil unrest and attempted coups. This in turn led to the Bolivar national currency losing more and more in value.

Thus Bitcoin to secure their money a popular choice for the Venezuelans to the value. This is partly thanks to Maduro. The Venezuelan president introduced a government-backed, oil-linked stablecoin called Petro – and it undoubtedly helped educate civilians about cryptocurrencies in general.

By 2019, $ 305.9 million was traded on LocalBitcoins in Venezuela, with Colombia and Peru second and third at $ 134.2 million and $ 45.5 million, respectively. Other important countries are Hong Kong, which has become a hotbed for cryptocurrency activities amid government protests, and Iran.

Bitcoin as a growing trend

Another interesting trend that can be observed within these problematic countries: the increase in trading volume from 2018 to 2019. For Venezuela, which is at the top of the list of traders, growth was rather low until 2019, it only increased by 33 percent.

The country that saw the biggest increase in LocalBitcoin volume in 2019, with almost 70 percent growth, was Egypt. Countries such as Hong Kong and Iran even declined from 2018 onwards, but that could have a lot to do with the policies adopted by governments to stop bitcoin trading.

The data presented by LocalBitcoins paint the picture of a prominent use case. The leading nations are concerned about the possible recession and are looking at Bitcoin’s potential. People in already stricken nations are making the importance of a decentralized and isolated financial system increasingly apparent.