Venezuela, Colombia, and Chile have fiat currencies whose value is the closest to that of Satoshi. Peru, Brazil, and Bolivia have the most valuable currencies concerning the smallest unit of BTC.
An analysis of the price of some fiat currencies in Latin America indicates that five of them are closer to the value of 1 satoshi, while others far exceed that value.
Satoshi is the smallest unit of measurement of Bitcoin (1 satoshi = 0.00000001 BTC), with a current value of USD 0.00009; therefore, when the price of the first cryptocurrency changes, so does the value of Satoshi.
By taking the value of 1 satoshi as an indicator, it is possible to come to understand how strong Latin American fiat currencies are.
For example, the Venezuelan bolivar (VES) has a value of about USD 0.0000049, which is equivalent to about 0.05 satoshis. The bolivar is the only Latin American currency whose value is lower than 1 Satoshi. Inflation of 9.585%, in 2019, and the increase in the price of Bitcoin have made the fiat currency of the Caribbean country the least valuable in the entire region.
In Paraguay, the guarani (PYG) has a value of about USD 0.00015, which is equivalent to 1.65 satoshis. This is the Latin American country with the second weakest fiat currency concerning the smallest unit of Bitcoin. In the case of Colombia, people need 3 satoshis to acquire 1 Colombian peso (COP), which currently has a value of about USD 0.00027.
Fiat Currencies worth Close to 1 Satoshi
Venezuela and Colombia are among the Latin American countries with the highest number of users of Bitcoin and other cryptocurrencies. Venezuela leads the trading of Bitcoin in the region on the P2P platforms Paxful and LocalBitcoins, with a large 39% of the volume. Colombia is in second place, handling 29% of the Latin American volume, according to data from UsefulTulips.
Even though the Paraguayan fiat currency is worth close to 1 satoshi, the trading of Bitcoin in this country is low. Currently, Paraguay handles a weekly Bitcoin trading volume of just USD 4,973. This means that the country is handling 0.05% of Latin American trading on Paxful and LocalBitcoins.
In economies with stronger fiat currencies, it is possible to see that Bitcoin trading volume is low compared to that in Colombia and Venezuela. For example, Chile only handles 3.35% of Bitcoin trading volume on Paxful and LocalBitcoins, which could relate to greater savings capacity in the country.
Fiat Currencies Worth between 10 and 500 Satoshis
Then there is the Costa Rican colon (CRC), which is worth 18 satoshis (about USD 0.0017). As in Chile, Bitcoin trading in Costa Rica is relatively low. They handle only 1.89% of the total Latin American volume on Paxful and LocalBitcoins.
The value of Argentina’s fiat currency is much higher than the smallest unit of Bitcoin. The Argentine peso (ARS) is equivalent to 156 satoshis or USD 0.014. A bit higher Bitcoin trading volume adds to the health of the Argentine peso, compared to Satoshi.
Argentina handles around 5.44% of the Bitcoin trading volume on Paxful and LocalBitcoins, which has increased since the application of exchange rate controls in the country. This South American country has more operating cryptocurrency exchanges and a higher level of activity than others in the region.
The Bolivian peso (BOP) has a value of USD 0.14, which is equivalent to 1,548 satoshis. Although the figure is considerably higher than that of its neighboring countries, the Central Bank of Bolivia prohibited the use of cryptocurrencies in the national territory. This could be the reason why Bolivia handles just 0.33% of Bitcoin trading volume in Latin America.
Fiat Currencies Worth above 1,000 Satoshis
In Brazil, the real (BRL) has a value of 2,102 satoshis, which is equivalent to USD 0.19. Brazil is in fourth place in the Latin American trading ranking, handling 4.99% of the total volume on the platforms Paxful and LocalBitcoins.
Finally, Peru is the Latin American country whose fiat currency is ahead in terms of its value compared to Satoshi. The Peruvian sol (PEN) is worth around 3,075 satoshis, about USD 0.28. Peru handles 9.08% of Latin American Bitcoin trading volume. This places the Inca country in third place in the Latin American trading volume ranking.
This analysis reveals the possibility to use Satoshi as a unit of measurement to assess the performance of countries’ fiat currencies. The contrast with Bitcoin allows for more transparent studies, given the well-known scheduled issuance of new coins on this network, as well as a price that fluctuates freely in the market.
By Alexander Salazar
