Bitcoin Volume in Venezuela Surging Amid Hyperinflation
So far, three Bitcoin exchanges have established themselves in Venezuela. SurBitcoin is by far the biggest, whereas Yabit and Cryptobuyer are relatively new on the scene.
Bitcoin remains one of the most popular commodities in all of Venezuela. The country is plagued by hyperinflation, and consumers have very restricted access to financial assets. Bitcoin provides an excellent opportunity to hedge against further inflation of the Bolivar, as well as invest in the future.
The month of July has been a particularly good one for Venezuela. The number of transactions per week continues to increase every week, even though the primary local exchange ran into some problems. Now that everything has been resolved, the interest in cryptocurrency is surging in Venezuela once again.
This same trend seems to continue throughout August so far, with over 141.7 million bolivar being exchanged for Bitcoin in the first week. The previous record-high, which was set the week before, added up to 117.116m bolivar. Comparing these values to their US Dollar equivalents, they represent US$141,000 and US$117,000 respectively.
Holding on to the Bolivar In Venezuela is asking for financial trouble these days. The local currency continues to devalue further, and there is no improvement on the horizon just yet. Moreover, residents can’t exchange their bolivars for other currencies, as capital controls are enforced throughout the country. That is unless they want to rely on the black market.
All of this is positive news for Bitcoin, as it provides Venezuelans with a way to get rid of their all-but-useless Bolivar and invest in the future. Bitcoin also lets these people hedge against future currency devaluations, as cryptocurrency has a far better chance of retaining its value right now.
So far, three Bitcoin exchanges have established themselves in Venezuela. SurBitcoin is by far the biggest, whereas Yabit and Cryptobuyer are relatively new on the scene. This goes to show the demand for Bitcoin is bigger than ever in the country, and it is a welcome opportunity to escape the country’s worsening recession.