June 16, 2024

Bitcoin is gaining popularity in countries with financial crisis.

Bitcoin is gaining popularity in countries with financial crisis.

Nothing drives demand for Bitcoin (BTC) more than economic and political uncertainty.Of courseFOMO, especially those initiated by China,but, in essence, BTC acts as reliable protection against the failure of fiat and economic policies. This year was no exception for some countries where the demand for digital assets has risen sharply.

Economies and local currencies of the two South Americancountries have been particularly hard hit this year. Venezuela lost nearly a quarter of its gross domestic product (GDP) in the first three months of 2019, according to reports. The oil sector, which accounts for more than 90% of the country's export earnings, has shrunk by 20% and continues to decline.

US economic sanctions and hyperinflation ledto extreme reforms, including pegging the country's currency to the Petro cryptocurrency and initiatives for its further adoption. Bolivar's epic devaluation significantly increased the demand for bitcoin in the country.

Amid increasing political uncertainty inArgentina, in anticipation of a change of president, the local currency also underwent a massive devaluation. As a result, the country took extreme measures to control the movement of capital in order to stop its outflow. At the same time, demand for bitcoin at over-the-counter trading in Argentina has risen sharply.

CryptoWelson, a trader and analyst, noted that demand in these countries rose to record levels.

“Since 2013, the volume of bitcoin pairs with the Argentine peso, the Hong Kong dollar and the Venezuelan bolivar exceeded $ 600 billion.”

Interestingly, in Hong Kong, where protesters continue to fight for democracy and banks have closed, demand for Bitcoin has soared to record levels. This is confirmed by the Localbitcoins charts.

Chile is also experiencing economic turmoil,as riots of protesters rock the country. The outrage is due to an increase in metro fares. As a result, demand for bitcoins also jumped sharply.

One way or another, the picture is clear: economic and political turmoil is driving up demand for BTC. In connection with the next global crisis, it is unlikely that this need will weaken. Most likely more countries will be added to this list.