Mexicans Now Need to Pay More than MXN 1,000,000 to Buy 1 BTC
In recent days, the price of Bitcoin (BTC) in the markets of Mexico reached a new milestone. The main cryptocurrency exceeded 1 million Mexican pesos (MXN) per unit for the first time, according to data from CoinMarketCap.
According to the price tracking website, 1 BTC is equivalent to MXN 1,036,863, doubling the price of the cryptocurrency from late December. At that time, the pioneering cryptocurrency was trading at about MXN 500,000.
Mexican exchange Bitso showed some metrics indicating how the price has evolved in the last year. The Bitcoin bullish run started in the middle of last year and the price has continued to rise since then.
In just 24 hours, Bitso reached a trading volume that exceeded 237 BTC, with a maximum of MXN 1,048,823 and a minimum of MXN 1,004,001. In that period of time, Bitcoin gained 2%, that is, about MXN 18,124.
People can buy 1 BTC for a minimum of MXN 1,091,000 in the P2P market of LocalBitcoins. The minimum selling price on this platform is MXN 1,061,000. On average, their users trade between 20 and 50 BTC every week.
Reasons for the Rise in Bitcoin’s Price and Users’ Reactions on Twitter
What has happened in Mexico and the rest of the world in recent months helps determine the reasons driving Bitcoin’s price higher. In September 2020, the price of the cryptocurrency that Satoshi Nakamoto created was equivalent to about MXN 230,000.
However, many factors contributed to the unexpected increase in the price of the main cryptocurrency against Mexico’s national fiat currency. High demand led to reducing the issuance of Bitcoin and central banks started to print money amid the COVID-19 pandemic. In addition to that, there has been a wave of institutional investments in the pioneering cryptocurrency on the global scale.
Twitter user @javiermtzmorodo wrote about the milestone that Bitcoin reached in Mexico. He said that “today the price of Bitcoin exceeds MXN 1,000,000 for the first time in its history”.
Similarly, user @jaguimx shared an image in which the conversion of 1 BTC to Mexican pesos reached seven digits. This person humorously posted: “Meanwhile in Mexico, this is what 1 BTC looks like”.
Bitcoin recently reached a new all-time high in US dollars and it is now trading at around USD 51,000, according to CoinGecko. One day before, its price exceeded the barrier of USD 50,000 for the first time.
Another prominent factor is that Bitcoin already ranks 14th among the most valuable cryptocurrencies worldwide. According to data from fiatmarketcap.com, the value of Bitcoin surpassed that of the circulating pesos in Mexico. That is another milestone for the cryptocurrency compared to Mexico’s national fiat currency.
Other Latin American fiat currencies that have lost value against Bitcoin include the Paraguayan guarani (PYG), the Venezuelan bolivar (VES) and the Argentine peso (ARS). People need to pay PYG 3 to buy 1 satoshi, the smallest unit of Bitcoin. Venezuelans and Argentineans have to pay more than VES 89 billion and ARS 4,6 million respectively to buy 1 Bitcoin.
By Alexander Salazar
