Again, two Latin American countries beat their records of Bitcoin transactions through Localbitcoins, calculated in their national currencies.
These are Chile and Venezuela. Two things happened in both: they achieved the highest number of transactions calculated in pesos and bolivars and, at the same time, the number of Bitcoin (BTC) exchanged rose compared to previous weeks. In each case, the reasons are very different.
Chile, Bitcoin, and Pension Withdrawal
The week that closed on September 5 saw the highest record of transactions in Chilean pesos, with 580.7 million pesos (USD 760 thousand approximately) exchanged for bitcoins. However, if we look for the highest bitcoin exchange figure in that country, it goes back to July 2015, when 143 BTC were exchanged for just $25 million ($ 32,000 at current values).
Those who live in Chile can clearly understand the reasons why BTC purchases rose in that country. And it is that, due to the economic crisis and unemployment caused by the coronavirus pandemic, in Chile, as in other nations, measures have been carried out so that the population can access the income that allows them to sustain themselves. One is that people can withdraw 10% of their pension funds from the AFPs.
Many citizens ultimately made these early withdrawals of their old-age savings to solve immediate problems of food, payment of rent, or cancellation of debts. On the other hand, others who keep their jobs and do not have emergencies have sought ways to invest that amount. We certainly see that cryptocurrencies are one of the instruments used by Chileans.
From the beginning of August, when the AFPs began to deposit the first amounts, the number of pesos invested in cryptocurrencies began to rise. In the first week of August, it was 42 BTC, and the second week it was 52 BTC.
Venezuela and the hyperinflation that eats everything
The number of transactions in bolivars, as is known, rises week by week in Venezuela. But that happens with everything in that country. According to data from the National Assembly, galloping hyperinflation already exceeds 1000% so far this year. Hyperinflation causes prices to double on all products in a matter of days and, of course, the purchase of cryptocurrencies suffers the same effect. For the first week of September, 1.9 trillion bolivars, equivalent to $5.3 million at the current value, were invested in the Localbitcoins platform, for which 521 BTC were bought.
By: Jenson Nuñez.