Bitcoin trading increasing in Venezuela

[Little Mouse]

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.
https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars

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[Meowth05]

It is understandable because they closed down their banks to prevent the spread, they are making measures to prevent a total outbreak. Plus they are experiencing hyperinflation in their currency that is why they are dependent on dollars so it is the reason there is a surge in bitcoin trading.

[avikz]

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.
https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars

If it is happening due to Coronavirus, then the same should have been happening in other countries as well. Like France, Italy and Spain etc. But is that happening?

The main reason of this increse is possibly explained as below,

1. Venezuelan dollar is facing hyper inflation that its purchasing power has decreased to the lowest level possible.
2. Due to the recent lockdown, their left over production industries halted production activities which further weakens the economy and its currency.
3. Venezuelan citizens are possibly looking for a highly liquid asset to safe guard their money

It is a joint impact of Coronavirus and weakened economy of Venezuela.

[Pffrt]

I recently read this article, saying that Bitcoin is/was trading at a 15% premium in China: https://beincrypto.com/bitcoin-selling-at-15-premium-in-china-amid-coronavirus-crisis/

Good to see people resort to an asset that can't just be printed and inflated like fiat.

It's only in China. In my local, it was above $6.5k per BTC when BTC was near $5000, although I didn't like the premium price because I wanted to purchase a little when the price was below $5000.
It's really good to see lately some activity is happening around.

[Artemis3]

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.

Its true that we are quarantined but i doubt "trading is increasing" as we rarely use banks for anything anymore anyway....

On the other hand, since you shouldn't go out you can't use much money in the first place.

But traders are making money and most volume belongs to those whales, many which don't even live in the country anymore.


Banks in Venezuela have been reduced to mostly electronic payment processors. You can't do the things you often associate with banks anymore, not for the past few years. No credit (rates are fixed, under hyperinflation which is nonsense, oh and they were forced to go full reserve, which is great if the rest of the Austrian measures (especially economic freedom) were put in place.

In any case before corona, banks in Venezuela were largely useless. Cash? Let me tell you, they can give you a single banknote per day. Currently there are only 3 types: 10k, 20k, and 50k. You don't get to pick which one, it depends if you are lucky you might get the 50k.

So how much is 50k? Before the world economic collapse, you needed 75k to purchase 1 USD. Currently, you need about 70k (go figure, a world economic collapse made a hyperinflation fiat turn around). But that's about it. People avoid cash if at all possible. Most payments are done by debit card (if you got an old one that hasn't broken, since new cards have been unavailable for years) or via SMS or app payment, or wiretransfer (which can take 1~2 days between different banks).

See? bitcoin transfers faster. A mere 1 day wait is luxury

Since the "legalization" (to own and use foreign currencies) in 2019, most cash you see around lately are USD banknotes, the smallest ones Americans often ignore (ie: 1, 2, 5). It is said many of the small banknotes from Florida are sent here so there is often scarcity of them back in FL...

Currently there are 42 cases confirmed, more expected to come. Both Cuba and China have sent people and supplies and medicines. Borders are closed, commercial travel (air, land, sea) is closed. There are blockades in many places to stop people from moving, and those that go out to buy food or medicine, have to use a mask (yeah i know it should be for the sick only, go tell them). People are not allowed to use gas stations either, only health/gov vehicles.

[fiulpro]

From what I have heard fir to non functioning of the banks and due to the people not being able to go outside , the bad government and jobs being shut down . Now people are left alone to fend for themselves .

*They are using bitcoins as a means of transactions at the same time they are working using bitcoins from home because the government isn't paying the people who are sitting at home.

I do think it is not just in Venezuela but in most of the countries dealing with Corona virus .

[Artemis3]

If it is happening due to Coronavirus, then the same should have been happening in other countries as well. Like France, Italy and Spain etc. But is that happening?

The main reason of this increse is possibly explained as below,

1. Venezuelan dollar is facing hyper inflation that its purchasing power has decreased to the lowest level possible.
2. Due to the recent lockdown, their left over production industries halted production activities which further weakens the economy and its currency.
3. Venezuelan citizens are possibly looking for a highly liquid asset to safe guard their money

It is a joint impact of Coronavirus and weakened economy of Venezuela.

It is hard to fall more when you are already at the bottom...
Venezuela's economy is one of the worst in several aspects.

Halted production? What production? Most production stopped in the past years of price fixation policies, and nationalization of industries left to rust abandoned. The goods that returned in today's Venezuela, are imported and overpriced (before the virus), yes including Toilet Paper

Venezuela's fiat coin is formerly called bolivar, like the historical figure (notice small cap to distinguish from the actual family name). This coin has been "remade" (to slash zeroes) 2 times, once in 2008 to slash three zeroes, and another in 2018 to slash 5 zeroes, so the current "bolivar" has a suffix to denote its current (3rd) version: Soberano (VES), previous version was Fuerte (VEF) and the original without suffix (VEB).

Current wages in Venezuela are too little (about $5 for a monthly wage, $10 if you land a "very good" job) to save anyway, and if you kept bolivars you would not be able to buy tomorrow what you can buy today. So those that survive, are either earning in foreign currency (or crypto) or get foreign currency (or crypto) sent from abroad by family or acquaintances.

This is why i mentioned "whales" in my previous post.

In my opinion, it really isn't happening, not by people living normally here anyway, at least not common people, but a few rich whales.

[dothebeats]

Bitcoin trading volumes in Venezuela were rising even before the pandemic happened. It is so because their currency is useless and people are accepting either USD or bitcoin in exchange for their goods. Currently everyone is on a selling spree on major markets, cryptocurrencies included, and the reason mainly is the virus spread. Anyway, back to Venezuela, since their money is so fucked up, they have no other choice but to hold and accept currencies with actual value, so it makes sense that their trading volumes rise amid the sells around the world. In a country where the economy is so fucked that it has been remade thrice yet nothing happened, you will expect its citizens to use anything--literally anything--except what their country issues.

[K4C]

In this lockdown time, I see Bitcoin's price and the trading volume keeps increasing. This is proved that when every money goes stop manually, Bitcoin money still can be transacted to use in daily life. Not only Venezuela, you see Bitcoin's price is increasing now, is it for lockdown or any other reason? I am not sure but there has a possibility though.

[adzino]

It is understandable because they closed down their banks to prevent the spread, they are making measures to prevent a total outbreak. Plus they are experiencing hyperinflation in their currency that is why they are dependent on dollars so it is the reason there is a surge in bitcoin trading.

So you are saying that just because the banks have closed down, the trade volume in Venezuela has increased? Care to explain why? Just because the banks have temporarily shutdown, people don't start trading crypto currencies. There might be some other reason. They probably are buying more crypto currencies to prepare themselves from the future economic crash and the current inflation (i think the government has bought that under control, though I am not sure).
Would be really interesting if Venezuela ends up making a crypto currency their official currency.

[jossiel]

I thought that even before the lockdown Venezuela has been soaring high in trade because of the hyperinflation there?

But regardless of that, people are doing their best to survive in these tough times and sure the other nations that are also in the same situation are doing the same.

[minersday]

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.
https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars

Considering the nature of this corona virus pandemic, bitcoin and cryptocurrency trading is the only form of services that can render people some amount of profits to survive in this crisis. It's no surprising people in Venezuela are now into bitcoin trading ....

[GreatArkansas]

It´s very sad, Venezuela are in serious trouble even before coronavirus, and now I saw another day that FMI rejected help to Venezuela
People are using BTC to protect their money against inflation, I don´t know exactly how they gain / buy BTC, but for sure it´s the best solution for them

They mostly buy BTC by making P2P trades. I think Bitcoin Magazine did an article on it a while ago.

This is also what on my mind, buying or selling Bitcoin by P2P trades is extremely good especially if you are the buyer. I don't think also the price is different there, like doubled in the current price? Maybe it's just a piece of fake news that I saw in some social media, as the price in LocalBitcoins there before.
Because for what I heard about the Bitcoin trading volume in  Venezuela already started before even the coronavirus outbreak hasn't yet started.

[stompix]

Here we go again...
Venezuela is breaking record after records in trading, huge amounts of bolivars are converted in bitcoin, Venezuela will help us reach the moon...
Aren't you all tired of this same news regurgitated over and over?

Yeah, volume on LB is up from 491 BTC a week to 540 BTC.
https://coin.dance/volume/localbitcoins/VES/BTC

But on the same down is on a downtrend from the 621 BTC recorded in January and i'm not going to mention..yes I will,  the  2,487 in February 2019.

This is again some piece of news over nothing.
A guy in Lebanon is selling bitcoins to 5 customers, hooray we're saved!
People in Venezuela are buying (and selling) 400k worth of BTC a day.

Bullish!!!

Considering the nature of this corona virus pandemic, bitcoin and cryptocurrency trading is the only form of services that can render people some amount of profits to survive in this crisis. It's no surprising people in Venezuela are now into bitcoin trading ....

Are you serious? Bitcoin is the only savior?
How have we not gone extinct till now during the 100 crisis and 100 pandemics we're experienced?
At least 95% of this planet hasn't touched Bitcoin even once, are you telling me they are not going to survive?

[btc78]

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.
https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars

this is the good thing we must look about the situation because the time banks are not around for sure crypto will boom and with just a push even our neighbor will use cryptocurrency specially Bitcoin.

so Let us use this situation as advantage to advertise Bitcoin again to those who did not believe us in past.
those people that we encourage but denies us,now they will find what we meant back then.

[pooya87]

this is obviously a click bait by a low quality website that keeps on publishing garbage. it is not a new thing either, in fact every couple of months we see the same exact news with the same exact mistake published by one of these garbage sites. it is partially because they look at the volume in Venezuelan local currency which has a very low value against USD which makes bitcoin price be ridiculously big against that. then obviously a small increase looks big in their eyes whereas if you convert that volume to USD or BTC you can see that it is minuscule in comparison.

with that said a volume increase during a big price move (both rise or fall doesn't make a difference) is obviously expected since a lot of people are selling and a lot of people are buying.

[KrisAlex18]

As what we are facing right now, as COVID -19 is still spreading around the world, fiat currency is now not being used in other countries because of being afraid to have contact or interaction with others.

So the bitcoin or other different cryptocurrency is now being used in different countries, cryptocurrency is one of their way to purchase something or to do transactions because it all happens online, so they don't need to go outside just to do transactions with fiat currency, so by that as cryptocurrency is being used in every country especially in the country of Venezuela, the trading of bitcoin increases, well, I have expected that thing because there will be people who will use our current situation to earn money, by just increasing the trading of the bitcoin.

When bitcoin is mostly used by a country there will be a lot of investors, players, especially the traders or even those people who have bitcoin will increase trading to earn money.

[jossiel]

I've seen the news on cointelegraph and they've just reported this about Venezuela.

Banking Shut Down Drives Crypto Adoption Among Venezuelans

[HakaseMarui]

Even in my country as WHO already said that the virus can be transferred through fiat money.

[stompix]

So the bitcoin or other different cryptocurrency is now being used in different countries, cryptocurrency is one of their way to purchase something or to do transactions because it all happens online, so they don't need to go outside just to do transactions with fiat currency, so by that as cryptocurrency is being used in every country especially in the country of Venezuela, the trading of bitcoin increases, well, I have expected that thing because there will be people who will use our current situation to earn money, by just increasing the trading of the bitcoin.

Bla bla bla..let make a 4 line paragraph of saying noting

People making more transactions because of the virus?
NOPE!

https://www.blockchain.com/en/charts/n-transactions?daysAverageString=7&timespan=30days




And some people were wondering who is still using coinbase...

[Artemis3]

I've seen the news on cointelegraph and they've just reported this about Venezuela.

Banking Shut Down Drives Crypto Adoption Among Venezuelans

I already said and explained why this is not true. Any volumes you see in localbitcoins are made by very few whales (foreigners) making a lot of money.
Most Venezuelans could never afford a single bitcoin (even at $5k) when the average monthly wage is $5 (this is not a mistake, and not a joke, i said FIVE USD).

In fact, unlike the rich countries, we didn't have any savings to sell to begin with. We are penniless, except a very small minority, usually close to those in power.

As i also explained, we don't use banks physically. They became pointless 3~4+ years ago along with hyperinflation. Even ATMs are 99.9% of the time cashless.

Volume in trading does NOT mean adoption. Its not the first time traders make money from the weird Venezuelan (State "controlled") economy. Most likely exploiting the mistaken State policies that in the end subsidize foreign currency. Bad mouths even hint of State level money laundering.

[ropyu1978]

The rise in bitcoin in Venezuela may be due to the national quarantine to fight the spread of the coronavirus, and closing all banks, at the same time, and the Venezuelan dollar is facing hyper-inflation whose purchasing power has dropped to the lowest possible level.

[verita1]

We are only at the beginning of the adoption of cryptocurrencies, said CZ in an interview with Invertia.
Article in Spanish

https://twitter.com/Invertia/status/1386649858413576192?s=19

If we want to take a look at how cryptocurrencies have great interest in Latin America and Venezuela. We can do it in Binance Spanish on Twitter.
As well as in the Binance P2P that Venezuelans trade with their local currency, which is a portal for global trading.

https://twitter.com/Binance_Spanish/

What is true is that the use of Cryptocurrencies in Venezuela is not widespread. There is still much to do but it is only the beginning, as is happening in many countries.

[cabron]

Bitcoin transactions have grown exponentially worldwide, not only in Venezuela but also in many countries around the world, as well as its popularity has increased many times more than before.  The world's biggest businessmen are now involved with Bitcoin.  They now reserve Bitcoin for all products on their stock exchange.

With the help of payment systems like Paypal I guess it widened that the entire world already sees BTC as currency but its still not being talked about on television that is why its really not spreading faster. But in countries where there is a political and financial crisis such as Nigeria and Venezuela, its adopting faster. In Mexico, there are also stores accepting BTC, this is also going to spread gradually in the entire South of America.

[Jalinayr]

It is good to hear because bitcoin is becoming more popular in every country and more companies wanting fast transaction in venezuela.

[Maslate]

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.
https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars

An online system like bank transactions, bills payment, online orders, and many more have been massively growing this time. People are now more engaged in online stuff which Bitcoin is more suitable during this time. In fact, people got to know about Bitcoin/crypto trading as it always poping out in social media and this eventually give a huge help.

As the spread of coronavirus continues the more it helps Bitcoin to grow its demand. Besides, not only in trading we have seen such huge growth but also in online gambling. Then I was thinking that this Covid-19 is a blessing to the crypto market

[magneto]

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.
https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars

Don't be fooled. Bitcoin trading =/= bitcoin adoption.

The volumes seen by LBC are small in comparison to the overall size of the economy anyway. If the narrative that Venezuelans are actually using BTC to transact on a day to day basis on a massive scale was true, then the volumes would likely be significant larger - with much more reports of physical vendors actively accepting BTC.

But we know that's not the case. When your minimum wage is $1 a month, sending a BTC transaction may not even be financially feasible. It's much more likely the volume on LBC is simply generated by traders who are speculating on BTC as the bull market emerged.