Although Venezuela does not register the highest volume of operations with Bitcoin in contrast with other moments, the amount of bolivars invested is the largest registered by the country within the platform
As a consequence of the changes in the prices of Bitcoin and the main cryptocurrencies during the last weeks, Venezuela once again registers one of the highest volumes of trading operations within the trading platform LocalBitcoin.
According to the Coin.Dance portal, Venezuela is the country in the region with the largest amount of operations within the platform with the main cryptocurrency. However, although the weekly figures for the amount of BTC traded are smaller than at other times, the platform indicates that during the same period Venezuelan users invested the largest amount of bolivars registered to the date.
Figures Registered by Coin.Dance
Citing the Coin.Dance portal, Venezuelan users traded a total of 1,596 bitcoins per week between March 30th and April 6th. This indicates a drop of about 40% in relation to the amount of BTC traded per week at the beginning of February, when the platform registered a volume equivalent to about 2,487 units of digital currency, the highest figure in the country’s whole trading history through LocalBitcoin.
However, by way of those 1,596 bitcoins, Venezuelan users invested a total of Bs. 26,849 million (more than US $7.2 million), according to the average exchange rate to the dollar managed by the DolarToday website.
Other Interesting pieces of Information
To confirm this information, DiarioBitcoin reviewed the list of purchase/sale orders published by Venezuelan users in the platform, finding some important factors in the trading offers.
There is an evident difference between the price established by the sellers for the digital currency and the estimated value. According to the Bitven.com portal, the price of Bitcoin (according to the rate managed by DolarToday) is about Bs. 19,851,912 (approximately US $5,180), but most users value the digital currency at more than Bs. 20,115,000, sometimes charging the equivalent price in US dollars or other currencies.
Although Venezuelans already find it customary, the price of Bitcoin fluctuates very quickly in really short periods of time, but not exactly for the rise of its value in dollars. This derives progressive changes in the referential value used by buyers and sellers, who constantly adjust prices to avoid losses, considering diverse indicators.
Devaluation and Cryptocurrencies
Experts and analysts assert that the huge investment in bolivars established through LocalBitcoins is directly linked with the devaluation of the national currency, which loses value against currencies like the US dollar and the euro, generating the rise in the prices of a large amount of products and services.
Faced with the limited availability of world-renowned currencies, citizens prefer investing their bolivars in cryptocurrencies. Many consider this option to be a mechanism to protect them from the inflation that affects the national currency, which is estimated by the Venezuelan National Assembly in more than 2,295,981% per year.
However, problems are becoming worse due to the recent electricity problems that affect more than 80% of the territory, which hinder the access by even more citizens to basic products and services. The situation also affects the ability to make payments or transfers through digital media, a viable option amidst cash shortage. It is striking that, despite the lack of electricity, users try to access the portal to acquire cryptocurrencies.
Despite those problems, cryptocurrencies are becoming an increasingly popular form of sending, receiving and saving money. These constitute one of the most practical channels to send remittances to Venezuelans from abroad, precisely because it is an immediate and economic process, in contrast to other better known means.
By Willmen Blanco