Research

LocalBitcoins volume in Venezuela reaches all-time highs

Quick Take

  • The weekly traded volume on LocalBitcoins in Venezuela hit all-time highs this week as it reached a USD equivalent of $9 million
  • One of Bitcoin’s most important qualities is an inflation hedge useful primarily in countries suffering from irresponsible monetary and fiscal policy
  • Venezuela is the only country where there is a correlation between the increasing inflation rate and increasing traded volume on LocalBitcoins

Arguably, one of Bitcoin’s most important qualities is an inflation hedge useful primarily in countries suffering from irresponsible monetary and fiscal policy. While gold has been a more reliable store of value last year, Bitcoin is more portable, divisible and much harder to be confiscated by an authoritarian regime.

There were at least seven countries in 2018 where the annual inflation rate reached more than 20 percent.