Cryptocurrencies have been trending upwards in price over the last few weeks, but in certain countries around the world digital assets have become far more valuable. For instance, in Argentina, the nation’s sovereign currency has lost considerable value and cryptocurrencies like BTC are seeing all-time price highs. The surge in value is not just taking place in Argentina as a few other countries suffering from hyperinflation are seeing significant demand as well.
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Lots of Crypto Demand Stems from Countries Experiencing High Inflation and Currency Devaluation
Over the last week, digital currency supporters have noticed that the price of bitcoin core (BTC) and a few other popular assets have been seeing higher price gains in some markets compared with the rest of the world. The trend has been seen in countries suffering from economic distress and hyperinflation, an accelerated version of traditional inflation. Essentially the state’s currency begins to erode extremely fast and the prices of goods like food and medical supplies increase. Due to this factor, the region’s citizens usually switch to more stable foreign currencies in order to hedge against rapid inflation. Crypto supporters have been noticing this happen with digital assets and recently people have observed the high price of BTC in Argentina. Against the Argentine peso, bitcoin core’s value has spiked considerably and is even surpassing the all-time high in 2017.
Currently, the price per BTC is 390,719 pesos in Argentina and Localbitcoins trade volumes have also touched an all-time high. During the first week of May, Argentinian Localbitcoins volumes reached $13 million and trading has continued relentlessly. The Argentine peso has seen a massive decline against the U.S. dollar and the economic uncertainties stem from the country’s upcoming change in leadership. However, the same trend is taking place with a few other failing currencies too like the Venezuelan bolivar, Sudanese pound, and Turkish lira. And there are other countries like Colombia, Chile, and Russia that are seeing increased crypto volumes and more demand than usual. Further, places like Argentina and Venezuela are also seeing demand for bitcoin cash (BCH) over the last 30 days.
On Localbitcoins, the Turkish lira has seen steady volumes growing on the exchange and prices show that the value of BTC is nearing 2017 highs as well. At press time 1 BTC is around 52,577 Turkish lira and there’s been 500,000 to 750,000 in Localbitcoins volumes over the last few weeks. Throughout 2018 and 2019 the Turkish economy has seen rapid inflation and the lira has seen a decline in value against other currencies. In addition to the lira, the Sudanese pound verses BTC has also been climbing dramatically.
At the time of publication, a single BTC is 393,650 Sudanese pounds and liquidity is extremely low in the region. Venezuela is also in the same circumstances as the country’s inflation rate of 1.30 million percent as of April 2019 has wreaked havoc on the sovereign bolivar. Over the past few weeks of Localbitcoins volume data, the country continues to smashThis post was syndicated from https://news.bitcoin.com/countries-suffering-from-rapid-inflation-show-significant-demand-for-cryptos/ and originally written by our friends Jamie Redman at https://news.bitcoin.com/feed/