Bitcoin demand in economically volatile countries surges

[alyssa85]

Have a look at the following graphic:



The image comes from the following tweet:

https://twitter.com/CryptoWelson/status/1190094660578037761/photo/1

Demand for #Bitcoin in economically volatile regions reached record highs in 2019.

Since 2013, volumes on Argentine peso, Hong Kong dollar, and Venezuelan bolivar bitcoin pairs have exceeded $600 billion in total value.

I wonder whether the surge in the bitcoin price that started in March/April is correlated with the Hong Kong riots which started on 31st March 2019 and are still ongoing.

[hello_good_sir]

I think that a lot of these investors and people that are suddenly entering the Bitcoin scene see it as the only safe haven away from their own country and it's currency.

For example, with Venezuela it has been used as a replacement for their peso currency for years now, their own currency has been unstable since forever and I think it might become a permanent situation soon. Same with Argentina except they are fighting it and don't want Bitcoin to replace their currency. Hong Kong is having issues with China, so that explains it easily.

[CryptoBry]

Demand for #Bitcoin in economically volatile regions reached record highs in 2019.

Since 2013, volumes on Argentine peso, Hong Kong dollar, and Venezuelan bolivar bitcoin pairs have exceeded $600 billion in total value.

I wonder whether the surge in the bitcoin price that started in March/April is correlated with the Hong Kong riots which started on 31st March 2019 and are still ongoing.

I am so sure all of these countries are helping Bitcoin in one way or another. Like converging factors, these all pushed Bitcoin to what it is today having broken the so-called bearish mood. Amazing to see Venezuela really leading the way as more and more people in that country look at Bitcoin as a way to tide them over the difficulties under an economy suffering from hyperinflation and the lack of basic goods. People in Venezuela have a hard time buying many products within their country and with the dollar restriction, they are using Bitcoin as the currency to reach to merchants just outside their territory. Definitely, the resulting economic slowdown due to the continuing protests on the streets in Hong Kong contributed to the rise of Bitcoin in this location. Since there is still no definite agreement on both sides (protesters and government)  protests can erupt anytime, and this can lead to more demand for Bitcoin and the consequent more-than-normal rise in its price.

[lobat999]

This is no surprise at all since this scenario is all part of an ever growing Bitcoin and crypto adoption worldwide that is taking its natural course and I assume  we would expect an even more vibrant Bitcoin and crypto industry in the coming years to come.

[blckhawk]

I think the surge is caused by the continuous publicity and adoption of these countries to Bitcoin. Once they had learned its background and its potential to be an alternative asset rather than their local banks to store funds, they might have migrated and the spread of words after that could have caused the surge. Having said that they're economically volatile/unstable means that the people of these countries are going skeptical about their economy's future and having found this safe haven must have been a huge factor for them.

[rdluffy]

There's no surprise, these people are scared to lose their money in their countries in a lot of ways like inflation, crisis, some random rules of governments etc
So a safe place to put money without anybody know is BTC, and this a good method to use
I hope I never need to use BTC in this way, but if necessary I would do it with BTC

[jacafbiz]

This is one of the role Bitcoin was created to play and most of these hot spot are great market and if Bitcoin can meet their need in this period of difficulties, when the good times come they are more likely to stick with it. The good thing for holders in the countries is that it goes for premium for those who are willing to sell their BTC

[ChrisPop]

It is normal for people to look for investing into appreciating or stable assets when their national currencies are economies are swinging like a bat on a baseball field. I'm happy to see that they're putting their moeny into Bitcoin and the volume is raising. That's another sign that Bitcoin could be the next worldwide store-of-value asset and a possible global mainstrem currency taking into account that it has much more superior properties and utility than gold does.

[Deathwing]

I would not be surprised if people were getting into Bitcoin so that they can buy USDT in those countries. Especially Hong Kong in this case. At least USDT doesn't really lose its value in comparison to Hong Kong Dollars. Bitcoin, however, may.

[Wexnident]

Could be a probable entry for the upcoming halving this 2020? A lot of countries have understood the possibilities of BTC, and they have for sure researched about past jumps and charts of BTC price. They should most likely be aware of what a halving could do to the economy of BTC and they should probably be preparing for it. These are just my speculations though. It is good news though since a lot of people have now been pulled in by the allure of BTC and hopefully, these people could contribute to its development.

[alyssa85]

I would not be surprised if people were getting into Bitcoin so that they can buy USDT in those countries. Especially Hong Kong in this case. At least USDT doesn't really lose its value in comparison to Hong Kong Dollars. Bitcoin, however, may.

The Hong Kong dollar is pegged to the US dollar - so the people of Hong Kong have no use for tether.

[Wysi]

This is no surprise at all since this scenario is all part of an ever growing Bitcoin and crypto adoption worldwide that is taking its natural course and I assume  we would expect an even more vibrant Bitcoin and crypto industry in the coming years to come.

Yes this is something which is happening from long time and moreover there are some more good news on the way because China might loosen it's restrictions on bitcoin and we are getting predictions that bitcoin will prosper further in Asian countries due to Japanese influence. 

[teosanru]

Have a look at the following graphic:



The image comes from the following tweet:

https://twitter.com/CryptoWelson/status/1190094660578037761/photo/1

Demand for #Bitcoin in economically volatile regions reached record highs in 2019.

Since 2013, volumes on Argentine peso, Hong Kong dollar, and Venezuelan bolivar bitcoin pairs have exceeded $600 billion in total value.

I wonder whether the surge in the bitcoin price that started in March/April is correlated with the Hong Kong riots which started on 31st March 2019 and are still ongoing.

This actually is obvious. It's not because these people have suddenly started loving Bitcoin. It's because of the need of the hour. Fiat is purely based on trust in central government while the recent incidents that have happened in these countries have made people realize that they cannot trust the government anymore and neither they can trust the currency issued by this government which is why they have decided to shift on bitcoin. But once the economic situation would settle they would once again be moving onto Fiat.

[ecnalubma]

Probably economic situation drives Bitcoin demand in those countries. We don’t wish more countries will suffer economic crisis like that but ironically its another factor that will contribute Bitcoin’s price high.

[Kyraishi]

More economic issues/insane inflation rates/unstable economics/government's fighting will mean people will take their hard-earned cash away from the banks and dump it into another investment option.

Previously, 10 or 20 years ago this would be in another nation's currency, or even precious metals like gold or silver. Nowadays, it's a lot easier and possibly safer to just throw your money into bitcoin and keep it there for a bit, even if prices are unstable unfortunately.

[airdnasxela]

Just like in Venezuela since they're having an economic crisis, probably they are looking for an alternative way since their main currency isn't stable nor in a good condition. They might trying bitcoin if it'll work for them just to survive because of the crisis.

Since they cannot rely on their fiat already, another possible way they can do is to go to the traditional one and use gold, or buy foreign currency, or just adopt bitcoin and cryptocurrency. It's actually an obvious move.

[Sahyadri]

Have a look at the following graphic:



The image comes from the following tweet:

https://twitter.com/CryptoWelson/status/1190094660578037761/photo/1

Demand for #Bitcoin in economically volatile regions reached record highs in 2019.

Since 2013, volumes on Argentine peso, Hong Kong dollar, and Venezuelan bolivar bitcoin pairs have exceeded $600 billion in total value.

I wonder whether the surge in the bitcoin price that started in March/April is correlated with the Hong Kong riots which started on 31st March 2019 and are still ongoing.

I am glad that people are understanding the importance of decentralized currency.
This trend is gaining pace lately. Any country with political or economical unrest is shifting towards crypto as a safe haven. The thing here to note is that when people lose hope from their national currency, they are considering crypto as a viable alternative. Though the volume isn't that high for obvious reasons. But the shift is expected to gain pace in coming years.

[rdluffy]

Just like in Venezuela since they're having an economic crisis, probably they are looking for an alternative way since their main currency isn't stable nor in a good condition. They might trying bitcoin if it'll work for them just to survive because of the crisis.

Since they cannot rely on their fiat already, another possible way they can do is to go to the traditional one and use gold, or buy foreign currency, or just adopt bitcoin and cryptocurrency. It's actually an obvious move.

In my opinion, gold is not a good idea
An average person don't know to to buy and sell gold, the government will know if you are buying gold and it's very dangerous to keep gold at you house and if youleave in your bank, the government can take, we are talking about country in a moment of crysis

With BTC you can buy online, have your private key and it's more secure, if the person needs to leave the country, it can be recovered in another country without any problem

[Doell]

Just like in Venezuela since they're having an economic crisis, probably they are looking for an alternative way since their main currency isn't stable nor in a good condition. They might trying bitcoin if it'll work for them just to survive because of the crisis.

Since they cannot rely on their fiat already, another possible way they can do is to go to the traditional one and use gold, or buy foreign currency, or just adopt bitcoin and cryptocurrency. It's actually an obvious move.

I agree with your opinion economic crisis there is a threat to citizens so that the transfer of funds into crypto and others ,right steps to invest in crypto and the results for the long term will feel more profitable than having to be developed into gold or other property

[jakelyson]

It is a logical way to do in a crisis. You have to store your wealth that cannot be affected by the melting economy of your country. And there are very few options. One is real estate but that would require large amounts and tedious to process. Another is gold, but just like what above me said, it is hard to secure. The most convenient is bitcoin and other cyptocurrencies. Easy to acquire, does not require large amount and can be secured easily.

But this is just three countries. How about other countries that are volatile?