It looks like an unstable economy is driving many people to cryptocurrencies like Bitcoin to hedge against impending hyperinflation of the local currency. Argentina is not currently doing particularly well economically either. One of the reasons why the volume of traded bitcoins (BTC) in the South American country rose to an all-time high.
Bitcoin trading volume on local bitcoins at all-time high
Localbitcoins is a platform for peer-to-peer trading of bitcoins (BTC). As is now known, the volume traded with the world's largest cryptocurrency in Argentina rose to an all-time high. So far, it was 69 million ARS (Argentine Pesos), with a weekly volume of 96 million ARS, this was significantly exceeded. 1 Argentine pesos corresponds approximately 0,013 Euro.
LocalBitcoins: new absolute record in Argentina
"Other notable peaks have occurred in South Africa, Tanzania, Peru, Chile, Nigeria, Kenya and Brazil, while recently there have also been peaks in Japan, Mexico and Egypt."https://t.co/N09nGynjMR
- LocalBitcoins.com (@LocalBitcoins) July 7th, 2020
The trend towards bitcoins could be a consequence of the depreciation of the local currency. The Argentine pesos has lost significant value in recent months and has now hit an all-time low against the USD. The ARS has lost 15% in value since the beginning.
As the company announced on Twitter, the trading volume increased not only in Argentina. In other nations that are struggling with economic difficulties, the volume has increased noticeably:
- South Africa
In addition, highlights were found in Japan, Mexico and Egypt.
Localbitcoins with increasing popularity
The peer-to-peer network Localbitcoins should be happy about the increasing use and acceptance of Bitcoin and cryptocurrencies in general. Because as we reported a few days ago, the platform registers 50% more new registrations.
And that despite the criticism that Localbitcoins had to put up with after the introduction of the KYC process. The provision of user data should therefore not be a problem for the users of the platform and should not prevent them from buying their bitcoins there:
Markus from Kryptokumpel.de
Photo credit: pixabay.com | CC0