The price of the cryptocurrency is also soaring in Turkey, Argentina, Sudan, Angola, and Zambia. Latin Americans resort to the cryptocurrency because of its “lifeboat” role.
In the last few days, the performance of Bitcoin (BTC) has reached benefits of almost 14% against the US dollar. This margin reflects in all the fiat currencies of the world, particularly in Brazil, Venezuela, and 5 other countries. There is an accelerated escalation of the value of BTC due to the devaluation of national currencies.
On his Twitter account, financial analyst Alistair Milne highlighted how inflationary turbulence is boosting the price of Bitcoin, particularly in some nations. Besides Brazil and Venezuela, he mentions Turkey, Argentina, Sudan, Angola, and Zambia. He also highlights that Russia and Colombia will soon join other countries as devaluation spreads throughout the world.
At the time of writing this article, Bitcoin is trading at BRL 72,729.12 in Brazil and VES 5,740,100,653.44 in Venezuela. These figures represent a new all-time high in these countries, where the price of Bitcoin has not stopped increasing. They also reflect the rate at which those currencies devalue against that of the pioneering cryptocurrency. “Fiat currencies are collapsing,” said another analyst on Twitter, referring to the currencies that governments issue.
According to data from the Bitcoin monitoring site in Venezuela, Yadio, the bolivar (VES) has devalued by 14% concerning Bitcoin in less than a week and by more than 40% in a month. Meanwhile, the Brazilian real (BRL) has lost about 10% of its value about the cryptocurrency in a week and 20% in a month.
The situation is also dramatic in Argentina, where the price of the cryptocurrency reached a new all-time high last week. It has kept climbing, and it now exceeds ARS 2,300,000.
Bitcoin and Its Tue Value in Latin America
Bitcoin is gaining performance from its adoption, and fiat currencies are losing their value. For that reason, citizens are turning to cryptocurrency to protect themselves from devaluation. A report from analysis firm Chainalysis explains how the Venezuelan population has responded to the hyperinflation that is pulverizing the bolivar. The document highlights that Venezuela is the third country with the highest adoption of Bitcoin and cryptocurrencies in general worldwide.
A Twitter user commented on what Bitcoin represents for the inhabitants of Latin America. He stated that the region is adopting cryptocurrencies very quickly. “BTC is our lifeboat in this sea of inflation that constantly devalues our [fiat] currencies,” he said.
Another user, on Reddit, mentions that the devaluation of fiat money allows identifying how Bitcoin can protect citizens. “If you invested your money in Bitcoin, you would double the value in your local [fiat] currency, keeping most of your purchasing power.”
Social media users’ points of view agree with a recent study by the University of Cambridge, which states that Latin America and Europe are the gateways to Bitcoin markets. This occurs because the flow of money that people trade within exchanges reveals that these platforms are gateways to access crypto-asset markets.
By Willmen Blanco
