Venezuela: Bitcoin Trading at All-Time High

When times get extremely tough, Bitcoin may come to the rescue. Proven by the people of Venezuela, a long-suffering country which is about to immerse into yet another financial catastrophe.

The data provided by Coin Dance, the community-driven online service for comprehensive Bitcoin stats, the trading volumes, which involved the conversion of Venezuelan Bolivar (Bs) to Bitcoin, which took place over the period of last seven days at LocalBitcoins, has surpassed all previous records and amounted to nearly 70 million Bs.

Why Venezuelans are stocking up on Bitcoin

One of the reasons behind such an incredible surge was the grave prognosis issued by the International Monetary Fund (IMF) concerning the state of the economy of this Latin American country. According to this prediction, Venezuela would continue going into a nosedive during the upcoming fiscal year, with projected inflation possibly reaching a staggering 10,000,000%.

To add salt to injury, the US President Donald Trump has issued an executive order which imposes a full economic embargo on Venezuela and freezes all assets that belong to the government officials of the socialistic country and all associated companies.

Such a serious aggravation of already poor relationships between Venezuela and the economic behemoth that is the United States will only deepen the existing economic and social chaos in the Bolivarian Republic. However, it's the common Venezuelans who will face the direst consequences of this geopolitical turmoil, as they would see the already minuscule savings evaporate into thin air.

That is, of course, if they don’t follow the example of the smart, and tech-savvy, part of the population, which didn’t hesitate to convert the evanescent national currency into a more secure medium for storage of value that is Bitcoin, or some other cryptocurrency.

Bitcoin dominates and acts as a savior

But judging from the ever-growing dominance of Bitcoin over altcoins on the crypto market, which constitutes 68.8% as of writing, the forefather of all cryptocurrencies appears to be the safest haven right now. Moreover, given that Bitcoin has all the prerequisites for another bull run, which may end up in BTC reaching and even surpassing the all time high of $20,089, recorded in December of 2017, those Venezuelans who manage to buy Bitcoin before the monstrous inflation strikes will full force, which is now bound to happen much sooner than predicted by the IMF, might even get a chance to make a profit.

Certainly, the majority of people in that country are willing to grasp at any straw that gives them at least the slightest opportunity to save the hard-earned money, without even thinking about profits, but that just might potentially be the case where Bitcoin acts as a rescuer of the struggling nation.

People around the world, and especially those in the developing countries, should take note of this situation since many predict that the global economic crisis in just around the corner. It is evident that the Venezuelan, and many other ongoing and upcoming economic crises, presents an opportunity for Bitcoin to prove its usefulness.

Author: Alex Paulson for Crypto-Rating.com