Venezuela Records Fourth Bitcoin Trading Volume in History

Willmen Blanco
-
0
Venezuela Records Fourth Bitcoin Trading Volume in History

Venezuela occupies the fourth place in terms of Bitcoin trading volume in the history of the P2P trading platform LocalBitcoins, even above China.

The oil-producing country has an intense activity in LocalBitcoins, according to data from CoinDance. This website ranks Venezuela in fourth place in the all-time leaderboard of the countries trading Bitcoin the most, with 11.18% of the total volume moving on the P2P exchange.

Since December 2019, the Bitcoin trading business on the exchange has ranged between 14.2% and 15.4% of the total volume moving on the website. Historically, the USA, Russia and the UK have been the leaders in the trading volume of the exchange, whilst the Latin American country is at a little over USD 700 million above China and the rest of Europe.

The graph shows that users have exchanged more than USD 6.32 trillion on the world’s leading P2P platform, where Asia leads the activity with more than USD 2 billion.

Colombia is the second country in the region regarding significant activity in cryptocurrency trading volume, in a distant 14th place with just USD 65 million, barely over 1% of the total activity of LocalBitcoins.

Brazil, Mexico, Peru, Chile, and Argentina, also from Latin America, appear among the top 50 countries in the historical classification of “countries that trade Bitcoin the most”.

Inflation and Remittances

Undoubtedly, the subject of inflation is apparent when seeking the main reasons for many analysts to assume a high Bitcoin trading volume in Venezuela.

The hyperinflation that the country is suffering has forced traders to use Bitcoin, among other cryptocurrencies, as a means of temporary refuge or bridge to access stable fiat currencies such as the US dollar, for both paying providers and saving profits.

However, there has been a rebound in BTC trading volume levels within the P2P LocalBitcoins exchange in countries such as Peru, Chile and Colombia. The majority of Venezuelan migrants, who left the country due to the difficult economic situation, went to those destinations to b able to send remittances to their families in the oil-producing country.

More than five million people emigrated as part of the massive exodus that Venezuela suffered a couple of years ago.  This indicates that the flow of remittances from those nations to Venezuela has found Bitcoin through the P2P exchange as a natural bridge for the millions of US dollars sent to the families of those who remain abroad.

That scenario seems to be very favorable for the massive adoption of Bitcoin and other cryptocurrencies in Venezuela, but that is far from coming true. The lack of knowledge on the subject and the natural resilience towards this type of system, due to the precarious situation in a country with more than 70% poverty, do not allow the majority of Venezuelans to understand the use of new technologies.

Besides, there is widespread mistrust in the “Petro idea” as a cryptocurrency to save money, since this system has more failures than benefits. Of course, it has generated people’s discontent rather than an incentive towards decentralized technology.

However, those ingredients still represent a mixture of opportunities in the world for the long-awaited “crypto nation” experiment. Some projects like Dash have understood this and are committed to it, with a high presence and aggressive marketing within Venezuela.

By Willmen Blanco

Current Economic Collapse Is Greater than that in 2008 When Bitcoin Was Born

Willmen Blanco
-
0
Current Economic Collapse Is Greater than that in 2008 When Bitcoin Was Born

The multimillionaire compared the current situation to the US Great Depression. He sees the coronavirus pandemic and social distancing like tsunami strikes.

Philanthropist and multimillionaire investor Ray Dalio sees a bleak picture for the US economy and the whole world, due to the coronavirus pandemic. The founder of the Bridgewater Associates investment fund predicted a collapse, rather than a mere recession, which will require a long recovery time from countries.

The executive considers that the current scenario is much more complex than that of the economic and financial crisis of 2008. At that time, the Gross Domestic Product (GDP) of the USA fell by 4.3% due to the collapse of the real estate market. That situation subsequently led to the birth of Bitcoin as the first cryptocurrency.

Dalio compared the current situation, in which economies are almost paralyzed and the rate of unemployment is increasing, to what happened in the USA between 1929 and 1933 during the so-called Great Depression. The latter was of the largest economic crises recorded in history, with a drop in GDP by 30% and in unemployment by nearly 25% in a period of three years.

He believes that this is not a recession but a collapse. He said that humanity is experiencing something similar to what happened in the 1930s. He considers that it could be “like a tsunami” that is going to make people change completely.

In his reflections, Dalio did not mention Bitcoin as a possible alternative for protection amid the current situation. However, he commented that a successful investor must know how to diversify the funds available.

Regarding governments’ measures to minimize the impact of the coronavirus on the economy, Dalio clearly stated that the same as in the past, decisions like printing money, 0% interest rates and bailout plans still apply.

In the past, Dalio has also referred to Bitcoin, which he questions for its volatility. In January of this year, the executive stated that money has two purposes: medium of exchange and store of value. He said that Bitcoin is not effective in any of these cases now.

Cryptocurrency market analyst, Willy Woo, considers that it is interesting to see that Ray Dalio thinks that this is a cycle change in the long-term debt, which he defines as a restart occurring every 70 years. He said that it implies a change in money structure, the last one after the Second World War when the US dollar became the reserve currency.

According to a recent analysis by Woo, in contrary to Dalio’s position, Bitcoin could have safe-haven properties. Woo reached that conclusion by comparing the sharp decline in international markets and that of cryptocurrencies, which occurred on March 12th, which the main cryptocurrency managed to resist better than other markets.

Another positive sign that cryptocurrencies have given in the first quarter of 2020 is the growth in trading volume by 61%. Furthermore, in a report on Bitcoin’s behavior, market analysts determined that the pioneering cryptocurrency may be a safe-haven asset.

By Willmen Blanco

Reddit Could Use Blockchain ​​Technology to Launch a Marking System

Maria Rodríguez
-
0
Reddit Could Use Blockchain ​​Technology to Launch a Marking System

According to the Reddit user MagoCrypto, the company could be in testing for the launch of the tool.

Reddit, the renowned website for classifications and marking contents, would be considering using a blockchain system that will allow rewarding users with some type of tokens.

According to Reddit, the company is developing a system that will allow using cryptocurrencies in a reward or prize allocation scheme. The digital content platform has not declared the project as official. Reddit has not given too many details about the initiative.

However, a frequent user of the web indicated, last April 8th, that there is a possible development of a tool, which would be an app, that would be in charge of this new function.

The user who revealed the possible launch of this initiative in the future called himself MagoCrypto in a publication on the platform. He accompanied the statement with a video clip which shows the possible blockchain solution that would include a wallet. The video shows an app, in the beta phase, for Android smartphones that are fully functional to get the reward.

The video with the statement was originally posted through the CryptoCurrency sub-reddit and reposted by ethfinance. In this way, the message was trending in a few hours.

This statement encouraged the comments of crypto enthusiasts. According to the opinion of some users in the community, the system could be developed under the bases of the Ethereum blockchain.

The forum had the active participation of users interested in what could be the new functionality of the application. MagoCrypto confirmed its announcement showing evidence of what the new service could be. He mentioned that last Tuesday, he entered Reddit platform through his smartphone and noticed the addition of the “portfolio” option. When selecting, he realized that the word “blockchain” came out.

According to MagoCrypto, this could be development testing for a possible official release. “It is literally the official Reddit app on Android that I always use (build 2020.12.0.262357). I opened the app yesterday morning and saw the wallet (word) in the options menu. I went in, saw ‘blockchain’ and was really excited to share it with the rest of you. It seems that I am a minority who have seen this and I don’t know why. (…) I suppose they are A / B tests or something, I didn’t install anything special”, he said.

Then, the forum continued commenting on this topic and turned the conversation around why it should be developed under the Ethereum blockchain.

The video that MagoCrypto published lasts about 22 seconds and details the wallet option in a Reddit panel. Later, the video shows a point counter that could well be what the website would assign participants as a prize. Currently, there is no official announcement from the company. Neither if a system like this was being developed for users.

MagoCrypto could not go beyond the point counter. Therefore, there is an expectation of what could people do with these points, or if users can transfer or exchange for money or cryptocurrencies.

Other users pointed out that they have updated their Reddit application in the Play Store in search of the new option. However, this has not happened again.

Reddit has become one of the most popular web platforms for publishing content related to the world of cryptocurrencies and blockchain technology. It covers a large number of users who belong to the ecosystem of digital currencies.

By María Rodríguez

Crypto Scam Revenue Fall 30 % During Covid-19 Pandemic

Maria Rodríguez
-
0
Crypto Scam Revenue Fall 30 % During Covid-19 Pandemic

Almost 95 % of the most recent crypto scams correspond to Ponzi schemes. Scammers send emails and threaten to spread the virus to the family of the email recipient.

Even though scammers have used the Covid-19 pandemic to offer false aid tools, crypto frauds revenue fell by 30%. These criminals have taken advantage of the crisis that the pandemic has generated to trick victims and make them download malicious applications. But the profits they were receiving have decreased.

This is what a recent report of Chainalysis, the “forensic” blockchain firm, shows. This means that the transactions that known scam wallets received fell by 30 % last March. The Covid-19 pandemic appears to have fueled a strong decline in the earnings of cryptocurrency scammers.

In this way, the total value of all the losses that crypto frauds generated during last March went from 10,000 to USD 7,000 per day. Currently, crypto users seem to be paying more attention to their security.

A Small Part of the Current Scams

The report of Chainalysis indicates that frauds related to the Covid-19 pandemic are only a small proportion of the total crypto frauds worldwide. According to the report, most of the recent cryptocurrency scams correspond to Ponzi schemes. Specifically, Ponzi schemes represent over 95% of the combined sums that cryptocurrency scammers executed during 2019.

In addition to these types of scams, the company identified a slight resurgence of email scams. In these cases, scammers were also trying to use the Covid-19 outbreak to trick their victims.

The idea of ​​these criminals was to ask users for personal information to gain access to their digital wallets. The scammers were also looking to receive cryptocurrencies in exchange for fake drugs to fight the virus.

However, the fall of the cryptocurrency market in mid-March seems to have affected the earnings of crypto scammers. The cryptocurrency market is now recovering its price, but scammers are not getting money.

Last week, Chainalysis noticed that an email address was posing as the Centers for Disease Control and Prevention, soliciting donations to study Covid-19 treatments. On other occasions, they have even posed as WHO members.

New Types of Scams

The company reported that some blackmail schemes, which claim to have information about how to defeat the Covid-19 pandemic, have emerged. These scams are not the same as typical blackmail schemes in which a scammer claims to have compromising information that they will leak if they do not receive money in return.

An individual who says he has Covid-19 is the one who sends these new forms of scams. He sends emails and threatens to spread the virus to the friends and family of the email recipient if he does not receive a ransom on crypto assets.

Fortunately, these types of scams have not been as successful as digital criminals hoped, despite many users remain at home in quarantine and could be vulnerable to scams.

The crypto world has suffered two types of cybercrime: those that breach the security of cryptocurrency exchanges and steal assets, and those that use fraudulent schemes to trick users and hand over money to criminals.

Because of this, even though the cases have dropped during the last month, it is recommended that the crypto community be alert to protect its security, looking at the platform’s trajectory and the number of users it has.

By María Rodríguez

Quarantine Does Not Prevent Argentina from Keeping Bitcoin ATMs Operational

Alexander Salazar
-
0
Quarantine Does Not Prevent Argentina from Keeping Bitcoin ATMs Operational

The ATMs that remain operational are in stores that sell necessities. The ATMs undergo disinfection daily and users have to wash their hands after using them.

Last March 20th, the Argentine government decreed a mandatory quarantine throughout the country to prevent the spread of the COVID-19 virus. The measures prohibit gatherings, impose new route control and suspend work until further notice. This creates a new picture of desolate cities and collective panic, which also affects cryptocurrency companies residing in Argentina.

Athena Bitcoin, a cryptocurrency ATM manufacturer, has had to adapt its scheme of work to the new commercial reality under the quarantine. Dante Galeazzi, Country Manager in Argentina, states that the coronavirus epidemic has affected them like other companies, with a drop in sales volume.

The company has more than 10 ATMs throughout the country, according to data from Coin ATM Radar. However, several machines have recently stopped working, since they are installed in premises that were closed due to the quarantine. For this reason, they are not processing the same number of transactions with cryptocurrencies and fiat money as in previous months.

To give its users the possibility of trading Bitcoin (BTC), the company has decided to keep seven ATMs active in Buenos Aires and La Plata. The vast majority of these devices are installed in Walmart stores, so customers can do their weekly grocery shopping and, at the same time, check out the ATMs.

Persisting amid Pandemic

The board of directors of Athena Bitcoin said that they will not allow the coronavirus to remove cryptocurrency ATMs from the market. They will instead open new opportunities for Argentine citizens to access new monetary alternatives such as Bitcoin. Galeazzi stated that it is important that citizens do not lose their rights and can continue trading Bitcoin.

Ensuring to keep the service as secure as possible, Athena Bitcoin has contacted the owners of the premises to have the machines disinfected once a day. The same as cash and credit/debit cards, ATMs can also be a vehicle for coronavirus contagion. A large number of people touch the machines daily, which can make them get the virus, especially if they do not comply with minimum hygiene measures.

The company expects the ATMs to remain active throughout the quarantine period since they are located in stores that sell necessities. However, Athena Bitcoin is also developing a new service to meet the demand for cryptocurrency and decrease the risk of contagion. To do this, customers can use a new system to buy Bitcoin without leaving home, through bank transfer and the Internet.

Bitcoin in Times of Coronavirus

Dante Galeazzi believes that Bitcoin can help families in the current health crisis that humanity is facing. He notes that Bitcoin is an alternative for sending remittances to solve the precarious economic situation of relatives who have lost their job due to the pandemic or lack of money to cover quarantine expenses.

Galeazzi states that Bitcoin can also become a safe-haven asset for businesses that are still operating in Argentina. Last year, the Argentine government decreed an exchange rate control restricting the trade of US dollars, which complicated the country’s economic situation with the further devaluation of the Argentine peso (ARS).

Bitcoin emerged as a possible channel to access US dollars or a monetary system not controlled by the State. Cryptocurrency trade has flourished thanks to this situation, which could be accentuated considering that the quarantine has tightened controls on the US fiat currency in Argentina.

By Alexander Salazar

New All-Time High in Terms of Number of Addresses with Balances of at Least 1 Bitcoin

Alexander Salazar
-
0
New All-Time High in Terms of Number of Addresses with Balances of at Least 1 Bitcoin

Nearly 800 thousand accounts have balances equivalent to or greater than 1 BTC, as the next halving of the main cryptocurrency approaches. Despite the volatility of the Bitcoin market, users show a tendency to accumulate the cryptocurrency.

The number of addresses with balances of at least 1 BTC reached its all-time high last March, according to data from the blockchain ecosystem monitoring platform, Glassnode. The ascending line of the graph from the data provider shows that almost 800,000 accounts had one or more BTC until March 12th, when they reached the milestone, and an additional 13,258 until April 9th.

Data from Glassnode also show that in late 2017, when the Bitcoin price hit an all-time high of around USD 20,000, there were about 720,000 accounts with balances of 1 BTC. Subsequently, when the price of the pioneering cryptocurrency dropped in 2018, a minimum of 690,000 addresses held 1 BTC.

Taking into account that there were about 550 thousand wallets with at least 1 BTC at the beginning of 2017, the data show that users tend to accumulate the cryptocurrency despite the volatility of the market and the price drop of last March 12th. On that date, the price of Bitcoin fell from USD 10,000 to USD 4,185 per unit before rebounding above USD 6,700 at the time of writing this article.

It is important to note that a Bitcoin address does not necessarily represent a single user. A user can create multiple addresses and conduct various transactions from them, to ​​maintain his or her anonymity.

Between January and March 2020, another category of addresses achieved a significant growth: those addresses with at least 0.01 BTC. This is another reference to understand the increasing interest from the world in Bitcoin, less than a month before its next halving occurs.

Besides, users have been withdrawing funds from cryptocurrency exchanges, which may be a sign that they want to keep them in their accounts until after the halving scheduled for May takes place, according to Glassnode. However, the behavior of network users could also indicate that there is a strong tendency to take refuge in the cryptocurrency during times of economic and political instability. There are also recent Indicators that show that the Bitcoin market is ridding itself of panic sentiments.

On the other hand, Glassnode data also reveal that big Bitcoin investors, known in the ecosystem as whales, are accumulating an increasing amount of BTC as the halving of the first cryptocurrency, scheduled for May, approaches.

According to an analysis that the firm Glassnode conducted, there are currently almost 1,850 entities or operators that have at least 1,000 BTC in their accounts, which confirms that whales are in the accumulation phase. The figure had not reached that level since the end of 2017 when Bitcoin had a price of USD 20,000. However, the behavior of large investors at that time was one of capitulation, that is, of selling and making a profit.

By Alexander Salazar

1...1,3581,3591,360...1,654Page 1,359 of 1,654