Bitcoin

Bitcoin Trading in Venezuela Increases to a Record High: Can it Become a Global Digital Currency One Day?

Bitcoin (BTC) erupted out on the financial scene after the global economic recession of 2008. As people started to look for alternatives to the traditional fiat framework, cryptocurrencies appeared out of nowhere. Although initially, bitcoin trading was on the relatively lower side, as years passed by, its volumes increased. In the past couple of year, things have become too exciting for the asset overall. A lot of attention was gained by the asset during the bull run that it had back in 2017. Since them, bitcoin trading has become one of the focal points for various investors.

Just recently, as suggested by the data compiled by Coin.dance, bitcoin transactions in Venezuela on the peer-to-peer crypto trading platform LocalBitcoins hit a record new high. Bitcoin trading is seeing a rise in the country. Here’s why.

Venezuela has been facing severe problems in its economic structure. The economy has been destabilized and hyperinflation has taken hold. As per some reports, a mass exodus to the neighboring country of Colombia is also taking place. Protests and strikes are erupting out. And in this time of economic crisis, people are taking the cryptocurrency route to store and transfer value. Dash has already achieved a very strong hold in the country. The transactions of bitcoin are on the rise. So what does this signify? Are cryptocurrencies the future? Will bitcoin trading get more attention? Will bitcoin become a global reserve currency in the future operating in parallel with the traditional fiat one?

The condition of Venezuela has highlighted some major flaws in the banking system. It was reported recently that the Bank of England blocked Nicolas Maduro’s officials from withdrawing $1.2 billion worth of gold. We are also seeing financial frameworks in countries like Iran and Zimbabwe break down. Before the next global economic recession hits, people are looking for alternatives again. And bitcoin is one of them. No wonder bitcoin trading is seeing a serious boost in Venezuela.

The proponents of bitcoin believe that it is the future of global currencies and will help provide people across the world with a separate layer of financial operations. As it is decentralized, there is no single party controlling the asset. Being on blockchain, the transactions are also visible to everyone. The current monetary framework of the world is controlled by banks. Bitcoin is an entity that is not controlled by banks. Hence, the proponents of bitcoins support this asset with so much intensity, freedom from banks.

In the hindsight of all this, there are still a lot of shortcomings associated with bitcoin. As we move forward with developments being made in the regulatory and the tech arenas, it seems that the position of bitcoin in the financial world will become more strong. Although the bitcoin trading volumes might be low as of now, they are expected to increase in the future if things turn out well for the asset. With the Venezuelan situation in mind, it looks like bitcoin does possess to become an accepted global digital currency one day.

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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