The astronomical inflation rates in Venezuela have caused the bitcoin cryptocurrency to reach its highest trading volumes ever.
Economic analysts have estimated that the inflation reached 10.000% which prompted investors to look for alternative currencies with store value.
In 12 months, the price for a cup of coffee increased with 373,233%, according to Bloomberg data. Before this, in 2018 the bolivar suffered a devaluation which reduced five zeros from the national currency.
Bitcoin Popularity in Venezuela
Bitcoin has grown in popularity since the end of last year when it reached its all-time highs. Venezuela’s current economic crisis has been very unkind to their national fiat current, the Bolivar. Inflation rates have kept going up, and as the bolivar kept losing its value, more and more people have turned to crypto.
Venezuela has tried launching its own oil-backed national cryptocurrency, the Petro, in an attempt to alleviate economic issues and circumvent US sanctions.
Bitcoin Volume the Highest in A Country Where It’s Illegal
In Venezuela and Columbia trading with Bitcoin is an illegal activity, but here the crypto has reached its highest trading volume recorded. Venezuela current economic crisis is so huge that it has left all other sectors in chaos.
The government cannot control how its people get a hold of cryptocurrency and how they use it, and their lack of power when it comes to the stabilization of their own fiat currency has hurled many investors in a panic to seek other alternatives.