[2018-03-06] Bitcoin Buying on the Rise Again in Venezuela

[ivanpoldark]

Venezuelans’ interest in buying Bitcoin has increased significantly over the last three months, Criptonoticias news outlet reports Wednesday, June 6, citing data from the LocalBitcoins exchange.

Venezuela experienced its first cryptocurrency boom in early 2017, when a record volume of 805 bitcoins exchanged in a week was set.

Following that, the level of interest towards crypto in Venezuela dropped, coinciding with a decline in trading volume to as low as 150 bitcoins bought per week.

However, according to Criptonoticias, in early-to-mid 2018, Bitcoin investment surged once again in Venezuela, as evidenced by LocalBitcoins data. The volume of Venezuelan bolivar to Bitcoin exchange increased by 138% from March to April, and by 39% more from April to May.

The first week of June was in line with this tren, Criptonoticias points out. Over the last week of May some 4.9 trillion bolivars were spent on bitcoins, while the first week of June had seen the volume grow by 40.8% to 6.9 trillion.

Criptonoticias links the growing interest towards Bitcoin to hyperinflation in Venezuela. As bolivar keeps falling, in late May hyperinflation in the country surpassed 25,000%, according to Forbes.

As per Similarweb, Venezuelans comprise the largest share of Localbitcoins’ audience, followed by visitors from the US and the UK.

https://cointelegraph.com/news/bitcoin-buying-on-the-rise-again-in-venezuela

[Jating]

The hype around Petro has died down, that's why Venezuela's opted to go back to bitcoin again. And why would they rely on some crypto back by their governments? And besides, it was already proven that bitcoin is a good assets or commodity to buy right now because their country is in economic turmoil.

How many times we read that Venezuela are buying outside the country and paying in bitcoin in order to survived? So it make sense to go back to crypto that have save them up till now.

[vit05]

Petro was a government project. That had as one of the objectives to end Bitcoin. It is impossible for a centralized government to see Bitcoin as positive. They will do anything to ban it. But the population is reacting and I hope it is one of the great opportunities to fight against this oppressive regime.

Bitcoin is today the only opportunity for a population to fight the government using financial instruments instead of weapons.

If the population gives up the local currency and uses exclusively Bitcoin, no dictatorship will survive.

[stompix]

The hype around Petro has died down, that's why Venezuela's opted to go back to bitcoin again. And why would they rely on some crypto back by their governments?

Probably most of the hype was anywhere but Venezuela, I doubt anybody in that godforsaken country would trust that failed government with his money.
And, now that I think about it, they weren't probably a target for that ICO, they have any money left, how could they invest. Ironically that the best way not to get scammed is being poor.

If the population gives up the local currency and uses exclusively Bitcoin, no dictatorship will survive.

Be serious.
Bitcoin or not bitcoin, as long as Maduro still controls the army and they are loyal that dictatorship will continue.
If they see BTC as a threat they will just arrest a few shop owner that deal with BTC, execute them and game over, do you think people will still use BTC when threatened with capital punishment?

I've lived in a communist country, you probably have no clue how docile people become when they fear for their lives.

[Tylev]

Encouragement of its national centralized crypto currency Petro led to an increase in interest in the traditional crypto currency, and primarily to bitcoin. Of course, hyperinflation in Venezuela of 25,000 percent also contributed to this. People need somehow to protect their savings. The Crypto currency has been saved by both the Venezuelan government and its people.

[darkangel11]

Encouragement of its national centralized crypto currency Petro led to an increase in interest in the traditional crypto currency, and primarily to bitcoin. Of course, hyperinflation in Venezuela of 25,000 percent also contributed to this. People need somehow to protect their savings. The Crypto currency has been saved by both the Venezuelan government and its people.

So in a way they tried to centralize cryptocurrency and got burned, which is good. At the same time some people who aren't interested in cryptocurrencies might see it as if they did an experiment where a cryptocurrency was supposed to work as a national currency and failed, which isn't that good.
I think we're going to see a bloody revolt in there at some point.

[Krishniche]

So one can expect the price of bitcoin to rise. Right?

[hatshepsut93]

So one can expect the price of bitcoin to rise. Right?

According to the article, the volume of Bitcoin trading in Venezuela is 6,9 trillion bolivars, which is equal to 10 million dollars. The global Bitcoin trading volume is 4.3 trillions billions, so Venezuela is like a drop in the ocean.

Encouragement of its national centralized crypto currency Petro led to an increase in interest in the traditional crypto currency, and primarily to bitcoin. Of course, hyperinflation in Venezuela of 25,000 percent also contributed to this. People need somehow to protect their savings. The Crypto currency has been saved by both the Venezuelan government and its people.

The real reason why people buy Bitcoin in Venezuela is always the same - bolivar is crashing and people are looking for methods to preserve their money.

[1Referee]

It is impossible for a centralized government to see Bitcoin as positive.

It highly depends actually. While I do agree that governments initially weren't all that positive, they will soon find out that Bitcoin offers the perfect features for them to trade with other governments they don't trust. Instead of governments trolling and rigging deals through their central banking system, Bitcoin will allow them to cut that nonsense out. In the same way that goes up for multi billion dollar corporations conducting business with foreign parties.

I expect this to become reality pretty soon actually. Give it a year or two at most.

The global Bitcoin trading volume is 4.3 trillions, so Venezuela is like a drop in the ocean.

Since when did Bitcoin's trading volume surpass forex's multi trillion dollar volumes? 

[veleten]

nothing surprising there,Petro is still not a solid option,bolivar is falling
the country is plagued by inflation,so the store of value is needed
bitcoin serves as both a store of value and money
as volatile as it is ,it is better to buy bitcoins and hope for better or keep your savings in venezualian national currency and risk losing it all
without any hope at all,especially seeing how the situation is not improving at all

[stompix]

Since when did Bitcoin's trading volume surpass forex's multi trillion dollar volumes?  

To the moon!  

According to the article, the volume of Bitcoin trading in Venezuela is 6,9 trillion bolivars, which is equal to 10 million dollars. The global Bitcoin trading volume is 4.3 trillions, so Venezuela is like a drop in the ocean.

Which rate did you use to calculate that volume, the official or the black market?
On XE I get a rate of 1 VEF =0.100125USD.


And although the global bitcoin trading volume is only 4.3 billion (lols, we're not into trillions yet) that's daily so it's still as you said it, a drop in the ocean.
I wonder who still buys...certainly not the average Venezuelan, I doubt all the Caracas slumps have money left for 10 coins.

[hatshepsut93]

Which rate did you use to calculate that volume, the official or the black market?
On XE I get a rate of 1 VEF =0.100125USD.


And although the global bitcoin trading volume is only 4.3 billion (lols, we're not into trillions yet) that's daily so it's still as you said it, a drop in the ocean.
I wonder who still buys...certainly not the average Venezuelan, I doubt all the Caracas slumps have money left for 10 coins.

I took it straight from the OP post, which says that the trading volume data comes from LocalBitcoins, so I guess it's the "black market".

I think some institutional investors already trading, if this volume was based solely on average Joes, everyone would be talking about Bitcoin everywhere.

Since when did Bitcoin's trading volume surpass forex's multi trillion dollar volumes? 

My bad, fixed 

[felixesteban]

If inflation continues to rise in the country like this, it is very natural to increase the interest in cryptos. People are desperate and trying to maintain their lives, and they see crypto investment as a hope.