It seems that an unstable economy is driving many people towards cryptocurrencies like Bitcoin to hedge against an imminent hyperinflation of the local currency. Argentina is also not doing very well economically at the moment. This is one of the reasons why the volume of traded Bitcoins (BTC) in the South American country rose to an all-time high.
Bitcoin trading volume on Localbitcoins at an all-time high
Localbitcoins is a platform for peer-to-peer trading of Bitcoins (BTC). It has now been announced that the volume traded in Argentina, the world’s largest cryptocurrencies, has reached an all-time high. While it was previously at 69 million ARS (Argentine Pesos), this was clearly exceeded with a weekly volume of 96 million ARS. 1 Argentine peso corresponds to approximately 0.013 euros.
The trend towards bitcoins could be a consequence of the depreciation of the local currency. The Argentine peso lost significant value in recent months and has now reached an all-time low against the USD. Since the beginning, the ARS has lost 15% in value.
However, as the company reports on Twitter, the trading volume increased not only in Argentina. Volumes also increased noticeably in other nations that are struggling with economic difficulties:
- South Africa
In addition, there were highlights in Japan, Mexico and Egypt.
Localbitcoins with increasing popularity
Localbitcoins, a peer-to-peer network, is expected to see increased use and acceptance of Bitcoin and cryptocurrencies in general. As we reported a few days ago, the platform has seen 50% more new registrations.
And this despite the criticism Localbitcoins had to put up with after the introduction of the KYC procedure. The provision of user data should therefore not be a problem for the platform’s users and should not prevent them from buying their Bitcoins there: