The appeal of bitcoin is greater in regions where financial hardship is commonplace. Both Venezuela and Argentina show an increasing demand for BTC as the year draws to a close.
It is a well-known fact how Latin American countries struggle financially.
Bitcoin Remains Popular in Latin America
Those problems are more apparent in Venezuela and Argentina compared to other regions. After years of increasing inflation, local residents are looking for alternatives. While bitcoin is not the most popular option, its trading volume is on the rise. Especially where LocalBitcoins is concerned, current statistics look very impressive. A massive increase in P2P trading volume has been noted in both regions. Venezuela remains well ahead of Argentina in this department. Considering how these spikes took place near Christmas, one has to wonder why this happens now. Both regions have noted a steady increase in LocalBitcoins volume throughout 2019.
Keeping that in mind, these increases in trading volume were only a matter of time. In Argentina, things have gotten very dire from a financial perspective. The same goes for Venezuela, where the domestic Petro cryptocurrency is not gaining any traction whatsoever. It seems likely to assume that more and more users will flock to bitcoin as a result. In turn, that should lead to further increases in weekly P2P trading volume.
JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.