Bitcoin demand in economically volatile countries surges

[Eugenar]

I don't know whether to be happy with this sudden adoption of bitcoin in other countries or not because they're experiencing a crisis... But one thing for sure is that bitcoin is helping them to survive their everyday living which their local currency cannot support. The only concern here is the volatility of bitcoin as well. Their currency is already not stable yet they're investing on something volatile as well. The con is when the price is low, it'll be hard for them as well

Basically there will be no order in the price of products and goods that they need to buy. As a result, there might be an economic crisis since one country needs to be organize in order for their economy to be stable. They should first utilize stable currency and not prioritize bitcoin for this purpose as the volatility will make them suffer furthermore.

[fiulpro]

Because of the bad governmental policies and the state of their economy also we should understand that soon enough it is actually going to be a global recession and at that time it won't be only countries like them using Bitcoins but the whole world will be there and Fiat is getting weaker and weaker and the jobs are declining and the number of them runs in millions in only one country !
These are all the signs of upcoming recession.!

[sirminesalot]

Well, that is not surprising. People from those countries ain't just buying Bitcoin as an alternative to their Fiat, they are buying in the hope of making profits in the future. As Bitcoin has more advantages over other alternatives, they go for it.

many benefits and expectations offered in investing in cryptocurrency and that makes a lot of people who start investing but if you know the risks that will be obtained certainly if we do not understand the losses we will get in investing and cryptocurrency I am sure will be needed along with the changing times and technology

[coolcoinz]

Because of the bad governmental policies and the state of their economy also we should understand that soon enough it is actually going to be a global recession and at that time it won't be only countries like them using Bitcoins but the whole world will be there and Fiat is getting weaker and weaker and the jobs are declining and the number of them runs in millions in only one country !
These are all the signs of upcoming recession.!

We had a really long period of global peace in the last 60 years. There were conflicts like the one in former Yugoslavia, but overall these wars were small if we compare them to what was happening in the 19th and early 20th century. IMO this is the main reason for the recession. War fuels the economy and we had no war for a long time. Some governments are making sure they participate in an armed conflict all the time, like the USA. They went from fighting in Vietnam to the Gulf War, then to Iraq, Afghanistan, Syria... America has to constantly be at war with someone to stop itself from falling into a crysis, similar to the Great Depression.

[Davee294]

Dont you guys think its kinda funny though for people in economically volatile countries to try to find stability using such a volatile currency like BTC?...At least if they convert it to tether or something.

Whats cooler to me is the fact that its a world currency and it can benefit people in countries where the value of their money is really low compared to the USD or EUR. People in less developed countries can work online for higher wages paid in crypto.

[Mometaskers]

Can't blame them for trying to find ways to retain their money's value since their currency is either quickly becoming worthless or there is the danger that their bank accounts can get locked (like what HKers fear). Of course there is still the issue that bitcoin prices swing somewhat wildly when valued in fiat but when it comes to portability, it's a very good option.

Should they need to flee their country they can just leave and open their wallet elsewhere. This would be unlike carrying their currency or dollars. For those staying though, I still think USD is still a good enough option. Countries that have their currency collapsed usually just switch to USD.

[hello_good_sir]

Dont you guys think its kinda funny though for people in economically volatile countries to try to find stability using such a volatile currency like BTC?...At least if they convert it to tether or something.

Whats cooler to me is the fact that its a world currency and it can benefit people in countries where the value of their money is really low compared to the USD or EUR. People in less developed countries can work online for higher wages paid in crypto.

No. That's not the point of it. The reason why most of their economies are so volatile and unstable is mostly due to the poor governments, and the centralized systems they have.

They go to bitcoin because it isn't managed by a government, and while tether is controlled by the company behind it who organizes it, bitcoin is uncontrollable, and even if the prices are fairly volatile, it's better then the other stable coins and how they operate.

[abhiseshakana]

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.

Have you ever thought that the soaring value of cryptocurrency exchanges in countries experiencing military conflict was caused by TINA (There is no alternative). Let's discuss one by one

- Venezuela
Venezuela is a country that is subject to a total embargo by the United States. The world banking system is controlled by the United States. The use of bitcoin as a payment tool there appears to facilitate the transaction of payment of crude oil to suppliers in Venezuela. There is no alternative to receiving money from outside the except using blockchain and also as an alternative to get assistance from other countries without America knowing.

- Argentina
Argentina is a country experiencing economic crisis due to inflation so that to maintain the fall in the value of its currency limits the purchase of USD and gold, but there are no restrictions on the purchase of bitcoin. this policy makes the demand for bitcoin and other cryptocurrency surges in Argentina and even the high demand makes bitcoin prices higher in Argentina than in other countries. There is no alternative to investing and keeping their value of money except bitcoin).

-Hongkong
Demonstrations and chaos in Hong Kong against China caused a sluggish stock and property market because the majority of Hong Kong's economy was supported by the tourism sector and business hubs in Asia (harbor hubs and also trading company centers gathered besides Singapore). with the social chaos and riots causing investor pessimism in Hong Kong so they are looking for alternatives on how to make investments.

For now, bitcoin is still believed to be relatively safe assets when there are many problems.

[Apes]

the issue of the Hong Kong people began to move their cash funds to crypto, in my opinion, was precisely made an excuse for economically volatile countries surges. they know that moving their cash into crypto forms will be safer than in cash, their worries and political conditions encourage them to save in anonymous crypto forms.

[mazdafunsun]

Your tittle is true and only logical.

But it is not actually correct to say that honk gong has as volatile economy as countries with currencies which are collapsed due the hyperinflation.
You showed us that there was only 17 million exchnages there, this is completely tiny amount and can not be correlated to price action of BTC.

[Wexnident]

the issue of the Hong Kong people began to move their cash funds to crypto, in my opinion, was precisely made an excuse for economically volatile countries surges. they know that moving their cash into crypto forms will be safer than in cash, their worries and political conditions encourage them to save in anonymous crypto forms.

Could be said so. A lot of countries have been trying to let their people buy BTC so that they could possibly hoard coins for the upcoming halving. A lot of people are placing their eyes on BTC right now so I expect a huge amount of analysis and descriptions of the current state of BTC now and in the next, lets say, year I guess.

[audaciousbeing]

Its actually not surprising what the data is saying because in the real sense that is what is happening. I remember when some times last where the country I am resident was facing an isolated economic recession. It was at the time the fiat value to bitcoin was on the high side and everyone involved in crypto to have an increased in value of their holdings but in the real sense it even out eventually because when you change high, you automatically buy things in the local market high which makes one not better off economically as you will still maintain the same economic position when the economy was better but better than those who are into fiat totally as they are poorer than they were.

[uray]

Could be said so. A lot of countries have been trying to let their people buy BTC so that they could possibly hoard coins for the upcoming halving. A lot of people are placing their eyes on BTC right now so I expect a huge amount of analysis and descriptions of the current state of BTC now and in the next, lets say, year I guess.

No government will want their citizens to hoard their wealth in a virtual currency that can be traded world wide but they cannot stop anyone from doing so but people are investing in bitcoin because they see an opportunity to hold their funds without any government policies and manipulations and they are confident in gaining a profit after the halving.

[alyssa85]

Dont you guys think its kinda funny though for people in economically volatile countries to try to find stability using such a volatile currency like BTC?...At least if they convert it to tether or something.

Whats cooler to me is the fact that its a world currency and it can benefit people in countries where the value of their money is really low compared to the USD or EUR. People in less developed countries can work online for higher wages paid in crypto.

Tether may be worthless if the investigations into it prove they have no reserves.

Bitcoin is way more valuable because you can exchange it for real dollars, rather than the fake dollar that is Tether.

[NathanJB]

Dont you guys think its kinda funny though for people in economically volatile countries to try to find stability using such a volatile currency like BTC?...At least if they convert it to tether or something.

Whats cooler to me is the fact that its a world currency and it can benefit people in countries where the value of their money is really low compared to the USD or EUR. People in less developed countries can work online for higher wages paid in crypto.

Tether may be worthless if the investigations into it prove they have no reserves.

Bitcoin is way more valuable because you can exchange it for real dollars, rather than the fake dollar that is Tether.

The controversy surrounding Tether (USDT) has not died down until now. Personally though, I have some doubts that the full 100 percent supply of Tether (USDT) is supported by reserves. Their supply is now reaching 4 billion plus USDT. That is an extremely big amount of money that Tether can support. 

Bitcoin is indeed volatile and it might even be dangerous to the present condition of the people in these countries. But if Bitcoin will not plunge in value, there is nothing to worry.

[error08]

If the government fails to manage a country's economic, the fiat currency will be affected by hyperinflation, thus the value continues decreasing.
That's why bitcoin as an alternative means of payment becomes a better option instead of using invaluable fiat currency,
That graph is an example of how people switch over to bitcoin in some countries which in political and economic instability.

[carter34]

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.

In my mind too, I think bitcoin is going to grow more because countries that have devalued currencies will see it as an investment area to hide the few currency they have in expectation of some profit that will accrue to it.

[secretgirl]

all three countries experienced a severe economic crisis that made their national currencies experience a falling and worthless hyperinflation. so they looked for other alternatives for payment tools. and they found bitcoin as a solution. although the value of bitcoin is also volatile but I think it's still better than their fiat money which continues to decline. I read an article that bitcoin residents of Venezuela use bitcoin to survive.
and I think this is indeed the purpose of satoshi to make bitcoin usable when there is a monetary crisis.

[panganib999]

The said countries like Venezuela suffered hyperinflation during 2016 that it reached 274% in 2016, got higher during 2017 and reached 863%, 130,060% in 2018 and got worse when 2019 entered that the rate raised up to 282,973 then had the rate at 4,679% during September this year, the country's crisis was caused by their International monetary fund where they wanted to print more private money, the inflation was just so catastrophic especially its impact to busineses that made them enter cryptocurrency that bacame their safe haven and that will save them from their own currency's crisis.

[BitHodler]

Tether may be worthless if the investigations into it prove they have no reserves.

I don't think it will do much longer term speaking, because the sentiment within the crypto space is already that Tether has no actual reserves to back every single token that they have issued.... people still use it.

The thing with Tether is that people use it to move fiat from one exchange to another to take advantage of arbitrage opportunities, and hedge declines in the price, which it does the best of any stablecoin that's currently in existence.