A study found a rising trend in Bitcoin (BTC) volume trading across Latin America amid the coronavirus pandemic and rising inflation that pushed the numbers to record highs and put Venezuela and Colombia at the top of the rankings.
Latin America sees an upward trend in Bitcoin P2P trading volume
According to Localbitcoins, a peer-to-peer Bitcoin (P2P) market, both Venezuela – the world’s second largest Bitcoin trader at 12.3% – and Colombia (11.3%) accounted for over 23% of the total trading volume on the Platform in 2020.
However, Russia continues to lead the way as it holds the world’s largest share of Localbitcoins’ trading volume with a 17.4% share.
Although all three countries have different economic realities, the report indicated that their populations share a strong interest in Bitcoin – which has already been demonstrated in crypto adoption numbers through related studies.
In Venezuela’s case, the country faced hyperinflation, leading to a devaluation of the fiat currency value and, consequently, an increase in citizens’ interest in cryptocurrency. Localbitcoins claims that such factors affect the volume of trade in Colombia, which in turn has helped fuel interest in Bitcoin in the country even further.
Other Latin American countries are seeing an increase in Bitcoin trading volume
The report also mentions Argentina, Chile and Brazil, where the volume of bitcoin exchanges via the P2P market has increased due to uncertainty surrounding their economies, mainly due to ongoing lockdowns.
There has been an increase in the number of Bitcoin ATMs installed in Colombia. According to recent statistics from Coin ATM Radar, the country has 60 ATMs, ranking it at the top of the nation with the largest number of Bitcoin ATMs in Latin America at the time of going to press.
Venezuela recently made headlines in the crypto community after Cryptobuyer announced on November 28th that all Pizza Hut restaurants in the nation are now accepting cryptocurrencies.
However, the macroeconomic situation in Venezuela is still quite dire as, according to the latest data compiled by Statista, the country ranks first in the global inflation ranking of 2019 with an annual inflation rate of more than 19,000%.
What do you think of the numbers presented in the study? Let us know in the comments below.
Also check out local.Bitcoin.com, a private, peer-to-peer platform where you can find others interested in exchanging BCH for local currency through a Blind Escrow Smart contract.
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