Venezuela is one of the few countries in the world right now that are facing troubles with their traditional fiat frameworks. Since its economic system broke down, cryptocurrencies have gained a very strong hold in the country. Dash is one of the prominent ones in this regard. Crypto trading is also gaining ground in the country as a result. Just recently, as per the data compiled by Coin.dance, bitcoin transactions in Venezuela on the peer-to-peer crypto trading platform LocalBitcoins also crossed a record high.
Venezuela is facing extreme difficulties right now in the form of its destabilized economy and hyperinflation. Strikes and protests are erupting out at large scales. Besides, there have been reports of a mass exodus to the neighboring country of Colombia. The rise in crypto trading in this hindsight absolutely makes sense as people are now opting for bitcoin and other cryptocurrencies to store and transfer value. Since the bitcoin network is a global one with no intervention from the government, it is acting as a parallel to the economic system of Venezuela.
What does this rise of crypto trading in Venezuela signify for the crypto world overall? In the current situation, the faults in the traditional monetary system are being exposed. Countries like Zimbabwe and Iran are also facing troubles in their fiat frameworks. Is there a need to find a better alternative to fiat? The entire world is engulfed in debt. Do we need a better monetary system?
The proponents of bitcoin are strongly of the view that it can act as a reserve global reserve currency in the future. The network formed by the asset is global meaning the sense of borders vanishes. Being decentralized, there is no one government or state bank controlling the asset. Even if a global economic recession hits, bitcoin and other cryptocurrencies which stand apart independently from the traditional monetary framework of the world can come to the rescue. Crypto trading might be a way out in the time of crisis.
The thing here to acknowledge is that there are faults in the banking system. It is not perfect. We might need a better alternative. Cryptocurrencies provide an alternative but since this world is so nascent, a lot of issues are still prevalent in it. Illegal activities and scams are present in abundance. As we move forward with developments being made in both the regulatory and the technological arena, it seems likely that cryptocurrencies will gain their strongholds in other countries as well. If this ever happens, crypto trading will likely see more boost and we might see more bitcoin transactions than ever in the world.