By South American countries, Venezuela and Argentina, have been faced with enormous financial volatility which has had far-reaching effects for the continent. As a direct result of economic uncertainty in Venezuela and Argentina, one continues to see huge volumes of fiat change hands for Bitcoin $6569.44 +0.15%. This has occurred despite the general, downward trajectory of BTC/USD trading yet again, to approximately $6000 this month.
The consequences of the economic crisis in Venezuela and Argentina are far reaching for its people. The financial instability, currency fluctuations, hyperinflation and the consequences for Venezuelans and Argentinians, have made repeated headlines globally. The effects are so profound that neighboring countries’ economies are not immune to the after-shock of the financial difficulties that Venezuela and Argentina are facing at the moment.
In Argentina, data from Coin Dance tracking volume on the P2P platform Localbitcoins, has confirmed that users have exchanged around 6.9 million pesos, with the seven days winding-up on September 9th.
Parallel to Argentina, Venezuela has hit its second-highest week reaching just under 295 million Bolivars. It is clear from Coin Dance’s report, that hyperinflation and the country’s currency switchover from August 20th have clouded the ability of experts to be able to determine precise values.
Matching the Argentineans, Peruvians have also seen a sudden spike. Their spike is now the second-highest amount of fiat currency changing hands, at approximately 2.6 million Sols in Peru. This is despite weekly volumes steadily, decreasing from June this year. Moreover, Columbia has now hit its fifth-highest weekly volume recorded to date.
Bitcoin leaves Altcoins in the dust
Juxtaposed to the previous seven days of spikes, this week has been met with considerable divergence from trading behaviour across the global ecosystem. The period closing on September 1, was recorded at the lowest overall activity since July of last year.
With the persistence of a bear market, Bitcoinsit has previously stated that peoples’ desire to invest, not trade Bitcoin holdings is a research focus for 2018.
In a survey of approximately 2500 users, it was determined that only 27% were interested in the short-term gains that the coins could offer. 13.1% had bought virtual currency for investment purposes, while another 10.5% were focussed on pursuing personal ambitions such marriage and the accumulation of assets such as property. 49.1% were long-term investors and were over the age of 50. Comparatively, only 30% of people in their twenty’s projected that they would hold onto their virtual currencies for the long term.
Bitcoin $6569.44 +0.15% has continued to advance specifically within cryptocurrency markets. Traditionally, Bitcoin has hovered below 50 percent for an extended period. However, Bitcoin is now at approximately 50 percent, which is its highest level since December 2017.
The data arrives as Ethereum leads a dismal week for altcoins, with Ether (ETH) dropping to 15-month lows below $175 Wednesday. Experts report that virtual currencies such as Bitcoin and Altcoin are in the “buying” stage, which is optimal for people wanting to enter the realm cryptocurrency.
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