The political and social situation in Latin America has led to an increase in cryptocurrency trading. So, LocalBitcoins published an article, in which they point out that Venezuela and Colombia represent more than 23% of the Bitcoin trade.
Certainly, LocalBitcoins, founded in 2012, is the largest peer to peer Bitcoin market in the world. Through it, you can trade and invest in Bitcoin.
Basically, cryptocurrency trading in Latin America has been on the rise. To the degree that two nations in this region lead, along with Russia, the Bitcoin trade.
According to data from LocalBitcoins, together with the educational group “Satoshi in Venezuela”, they indicate that the main markets are:
- Russia (17.4%)
- Venezuela (12.3%)
- Colombia (11.3%)
It is true that, in Russia, capital controls and strict regulation may be the main reasons for the popularity of Bitcoin.
In fact, Venezuela has remained in its position. As the world’s second largest trader of so-called ‘digital gold’.
Likewise, other markets such as the United Kingdom (6.3%) and Nigeria (5%) also have a place in the world’s top 5. Similarly, Argentina, Chile and Brazil have also been relevant in terms of the volume of Bitcoin exchange through LocalBitcoins.
It is worth noting that all these countries have very different economic realities. But, what they share is a very strong interest in Bitcoin.
Venezuela and Colombia with BTC
In any case, hyperinflation in Venezuela has led to the volume of Bitcoin exchange to increase considerably in the country. Therefore, such factors influence the volume of trade in Colombia.
According to LocalBitcoins, P2P trading in Venezuela remains the second largest Bitcoin exchange market worldwide with 12.3%.
In fact, Vladislav Alimpiev, manager of LocalBitcoins, expressed: «Every week, speaking of an equivalent in US dollars. Around 4 to 5 million dollars in Bitcoin are exchanged through our platform in Venezuela».
For its part, Colombia with 11.3%. That combined represents more than 23% of the total volume of transactions on the platform, during 2020.
That is why Vladislav Alimpiev said: «Actually, its volumes are almost the same as those of Venezuela. They are only slightly lower, around 3 to 5 million dollars compared to the amount of Bitcoin that is exchanged in Colombia each week».
Furthermore, Colombia is not only one of the leading nations in Bitcoin trading. It also leads the market for Bitcoin ATMs in Latin America, with a total of 60 devices installed. All this, according to data from Coin ATM Radar.
Similarly, Venezuela has been in the headlines recently. Specifically, in November, after Cryptobuyer, the Panamanian cryptocurrency platform, announced that Pizza Hut would accept cryptocurrencies.
To conclude, the Coronavirus crisis and rampant inflation have opened the eyes of traders. As a consequence, they have increased their appetite for Bitcoin.
I leave with this phrase from Art Linkletter: «I have learned that it is always better to have a small percentage of great success. Of one hundred percent of nothing».