The price of Bitcoin in Colombia doubled in a month and a half. In only 3 Latin American countries, the local fiat currency is worth less than one satoshi.
After reaching a new all-time high and remaining upward, Bitcoin broke a new record in Colombia. Its minimum unit, the satoshi, is now equivalent to more than 1 Colombian peso (COP), the legal tender fiat currency in the South American country.
On December 31st, 2020, the Colombian peso reached 1:1 parity with Bitcoin. However, due to the new price increase of Bitcoin (BTC) above USD 32,000, Colombia’s fiat currency is worth less than 0.00000001 BTC. In the international market, each satoshi is equivalent to about USD 0.000323.
The current price of Bitcoin is higher than COP 107 million, according to the rate in the local market of Colombia. This has been possible through the combination of the strength of Bitcoin and the weakness of the Colombian peso against the US dollar (USD).
During the last year, the Colombian peso has depreciated in such a way that its exchange rate against the US dollar went from COP 3,200 to COP 3,400 per US dollar. In 2020, the US fiat currency also peaked above COP 4,000, in March and COP 3,800, in early November.
Taking into account the value of the US dollar in Colombia in December 2017, when the previous all-time high (ATH) occurred, the equivalence was COP 2,982 per US dollar. The increase in this rate, as well as the depreciation of the Colombian legal tender fiat currency, has been almost 15%.
Upon breaking its previous ATH last November, BTC was still 17% below its 2017 all-time high in US dollars. Regarding the price in Colombia, its all-time high was at COP 54.5 million before the bullish run with which it closed 2020 and began 2021. That value has doubled in just over a month.
Bitcoin and the Depreciation of Latin American Fiat Currencies
Most of the legal tender fiat currencies in Latin America broke their respective Bitcoin ATHs before their US dollar ATH occurred.
It is possible to highlight Brazil, Argentina, and Chile among them. The case of Venezuela is exceptional since the bolivar (VES) depreciates so quickly that Bitcoin constantly breaks all-time highs, even when it does not have significant rises in the international market.
Only the Mexican peso (MXN) resisted, and Bitcoin failed to break above the 2017 high before the US dollar breakout. Even though there was already a new ATH on some exchanges before last December, the milestone had not yet arrived in Mexico.
It is not very common for a local fiat currency to have a value below the minimum unit of Bitcoin. Adding Colombia, only 3 Latin American countries are in this situation.
To buy one satoshi in Venezuela, it is necessary to pay VES 350. The thing is different in Paraguay and Colombia, where people would require only 2.27 guaranis (PYG) and 1.08 pesos (COP) per satoshi, respectively.
By Alexander Salazar