It is a no surprise for the other countries such as volatile countries to have a surge demand in having bitcoin. Bitcoin is a great asset and it outperforms most of the traditional assets because of its fantastic return in just a few years. Bitcoin still has a lot of potential to grow and that is what the other people see so they are now cashing into bitcoin to seize that opportunity.
While bitcoin is not precisely the best option when it comes to maintain its value over the course of days or months when you read there are countries with such a huge inflation that people need to spend their money as soon as they get it or they will lose any opportunity to buy anything with it then it is obvious that bitcoin at that point becomes a decent option compared to the national currency people are forced to use, but even in those countries the demand for bitcoin will drop as soon as their fiat currency gets stabilized or if they decide to drop their currency and use a foreign one. 
Topic: Bitcoin demand in economically volatile countries surges (Read 803 times)
It is a no surprise for the other countries such as volatile countries to have a surge demand in having bitcoin. Bitcoin is a great asset and it outperforms most of the traditional assets because of its fantastic return in just a few years. Bitcoin still has a lot of potential to grow and that is what the other people see so they are now cashing into bitcoin to seize that opportunity.
It is also highly important to point out that Hong Kong had a huge surge in crypto exchanges. Not just volume and all, but also the companies as in exchanges, so that means there was so much interest that people started to build local exchanges there in rapid pace as well and there was a huge volume uptick as we all know.
This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
When the trust in the government fades then it is completely natural for people to lose their confidence in their fiat currency and try to find alternative methods to keep their wealth, historically governments have always tried to find ways to seize the wealth of their citizens and as you may guess their citizens have always found ways to try to avoid this, until recently governments were winning this battle because now most of the money is in electronic form and if they wanted they could steal it from you.This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
But now thanks to bitcoin things are changing and for the first time we have an electronic form of money that protects our wealth and since it is decentralized it is possible that governments will never find a way to destroy it.
The trust in the government is dissipated among ordinary citizens and they begin to move to the cryptocurrency sector. What the state cannot give them is that there is no stability in their work. Bitcoin and crypto investments have stability and profitability, and this must be taken into account. The percentage of transactions from the deposit, investment in bitcoin, is much higher than in the real sector. This, many are beginning to understand.
It is also highly important to point out that Hong Kong had a huge surge in crypto exchanges. Not just volume and all, but also the companies as in exchanges, so that means there was so much interest that people started to build local exchanges there in rapid pace as well and there was a huge volume uptick as we all know.
This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
When the trust in the government fades then it is completely natural for people to lose their confidence in their fiat currency and try to find alternative methods to keep their wealth, historically governments have always tried to find ways to seize the wealth of their citizens and as you may guess their citizens have always found ways to try to avoid this, until recently governments were winning this battle because now most of the money is in electronic form and if they wanted they could steal it from you.This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
But now thanks to bitcoin things are changing and for the first time we have an electronic form of money that protects our wealth and since it is decentralized it is possible that governments will never find a way to destroy it.
The trust in the government is dissipated among ordinary citizens and they begin to move to the cryptocurrency sector. What the state cannot give them is that there is no stability in their work. Bitcoin and crypto investments have stability and profitability, and this must be taken into account. The percentage of transactions from the deposit, investment in bitcoin, is much higher than in the real sector. This, many are beginning to understand.
It is also highly important to point out that Hong Kong had a huge surge in crypto exchanges. Not just volume and all, but also the companies as in exchanges, so that means there was so much interest that people started to build local exchanges there in rapid pace as well and there was a huge volume uptick as we all know.
This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
When the trust in the government fades then it is completely natural for people to lose their confidence in their fiat currency and try to find alternative methods to keep their wealth, historically governments have always tried to find ways to seize the wealth of their citizens and as you may guess their citizens have always found ways to try to avoid this, until recently governments were winning this battle because now most of the money is in electronic form and if they wanted they could steal it from you.This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
But now thanks to bitcoin things are changing and for the first time we have an electronic form of money that protects our wealth and since it is decentralized it is possible that governments will never find a way to destroy it.
People who see the news as the increase/decrease in prices of BTC and alt may say so.
Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
It shows that the people in the cryptocurreny community is now getting smarter than before. Before, people used to react so fast with the news online whether it is fake or not because they are driven by their emotions but now we matured enough to just focus on the technical side of the market rather than fundamentals.Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
Crypto traders are becoming mature too on trading. That's why even a piece of big negative news like the Upbit, Gopax, etc hacking incident, it barely affects the price. Crypto Traders are becoming wiser too and with experiences from previous years plus losses
they become more cautious.Also we need to point out that the recent hacking could be a warning to the exchange that lacks the security and hopefully they will improve so that any exchange will become safer even though I'm not sure to those second rated exchange.
It is also highly important to point out that Hong Kong had a huge surge in crypto exchanges. Not just volume and all, but also the companies as in exchanges, so that means there was so much interest that people started to build local exchanges there in rapid pace as well and there was a huge volume uptick as we all know.
This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
This shows clearly that when you are not happy with your government, you tend to find other methods to put your money, and when you find something that allows you to both keep your money away from the government AND spend it at the same time as well that is the best clear choice you could ever have. Unfortunately there are too many old people that can't really comprehend how it all works but we could manage to help them as well we might see a huge increase.
I think when you do not know what your countries money will be worth in the next year, you tend to look for other stuff. For example in my country the value of our currency dropped significantly compared to other countries which resulted with a high inflation and that is why many people moved to dollar. I can understand why they moved to dollar, it is not really a bad idea because compared to many currencies dollar is stronger.
Still, I am not one of those people because I feel like bitcoin is a better store of value currency and yes I know that bitcoin has been doing recently but in the long term bitcoin is better compared to dollar. Maybe I am wrong, maybe they feel like gold/dollar is more guaranteed and they are right but I feel like in 10 years I will be doing much better.
And that is the thing, all of those that complain that the short term movements of bitcoin means that it is not a good store of value forget that those that are looking for that characteristic are not really thinking on keeping their coins just for a few weeks they are thinking in the long term they want to keep their coins for years and in extreme cases for decades similar to what many people already do with gold.Still, I am not one of those people because I feel like bitcoin is a better store of value currency and yes I know that bitcoin has been doing recently but in the long term bitcoin is better compared to dollar. Maybe I am wrong, maybe they feel like gold/dollar is more guaranteed and they are right but I feel like in 10 years I will be doing much better.
And when you do that it is very easy to see that bitcoin is by far the best store of value available but obviously those that criticize bitcoin do not really want people to know this small fact.
To be honest, I'm a little surprised that countries with hyperinflation now prefer Bitcoin instead of global reserve currencies, such as the US dollar, to save their funds. After all, Bitcoin has a high volatility of value, which can expose savings to even greater risk than if the population left their savings in the national currency.
It is just an unfounded rumor. The first preference remains other assets such as gold coins, which are more stable than Bitcoin. A few individuals from these nations may be investing in Bitcoin. But compared to the gold and USD volumes, this amount may look minuscule. The main reason is, as you have pointed out Bitcoin volatility remains too high to be used as a store of value.
People who see the news as the increase/decrease in prices of BTC and alt may say so.
Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
It shows that the people in the cryptocurreny community is now getting smarter than before. Before, people used to react so fast with the news online whether it is fake or not because they are driven by their emotions but now we matured enough to just focus on the technical side of the market rather than fundamentals.Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
Crypto traders are becoming mature too on trading. That's why even a piece of big negative news like the Upbit, Gopax, etc hacking incident, it barely affects the price. Crypto Traders are becoming wiser too and with experiences from previous years plus losses
they become more cautious. 
People who see the news as the increase/decrease in prices of BTC and alt may say so.
Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
Are you sure about the exchange? From what I heard, it was the South Korean exchange Upbit, which got hacked. Some $53 million worth of Ethereum were stolen, along with considerable amounts of TRX and BTT. But the hack occurred two days back, and if you remember there was a considerable decline in the exchange rates back then. The prices started recovering only today.
Before there wasn't bitcoin, people used gold as alternative, other precious metals and other goods, but bitcoin beats them all, its easier to hide and transfer it, if we talk about some higher amounts, how will someone transfer gold, or anything else, bitcoin wallet full with bitcoins can be hidden anywhere, much easier.
We haven't really seen a global meltdown yet. In the last couple of decades it has mainly been the USD that people used as hedge and store of value, and to some lower degree as means of exchange as well.Currently we have Bitcoin but that doesn't mean it's going to benefit from economic turmoil, especially with how people still consider it a very risky and volatile asset class.... stability is key to gain people's confidence.
If the price pumps and dumps by 20-30% every so often that's not helping people. People looking for alternatives want stability and not constantly stress out about the price having gone up or down significantly.
Cryptocurrency is only volatile because it's still small in terms of dollar amounts, and is not yet liquid enough. That means determined people can move the price with relatively little effort.
Once more institutional investors come into the space and billions rather than millions are traded daily, then the volatility should decrease.
People who see the news as the increase/decrease in prices of BTC and alt may say so.
Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
It shows that the people in the cryptocurreny community is now getting smarter than before. Before, people used to react so fast with the news online whether it is a fake or not because they are driven by their emotions but now we matured enough to just focus on the technical side of the market rather than fundamentals. Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
People who see the news as the increase/decrease in prices of BTC and alt may say so.
Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
Actually the news just utilized to manipulate the price.
The last news that I heard yesterday was the Gopax exchange in a hack worth 51.2 million $, should it be bad news, but the market shows the opposite reaction.
One of the good things of bitcoin is its power as a decentralized storage of value and asset which are mostly needed by countries that are having problems and crisis with their own currency and country. The riot in Hongkong serves as a threat in hongkong nationals in losing their country as well as to the government they have. In relation to this, they are threatened with the possibility to lose their freedom and assets, and maybe this is the reason why they choose to put their assets in bitcoin because of its potential in the future.
I pity the hongkongers, I know what it is like to be a protester for the rightful. It is expected for any country, especially when there is a calamity or crisis that they will need a decentralized network to store their valuables. And just so happen that cryptocurrencies is the top option for now, worth having bitcoins. As long as there is a protest in hongkong the need of bitcoin will continue to surge, having their btc pair trades higher than the others. Some banks and stores are closing due to the events but people from hongkong can still process payments with the help of crypto. I literally see the vital role of cryptocurrencies in the future now with these occurrences. To be honest, I'm a little surprised that countries with hyperinflation now prefer Bitcoin instead of global reserve currencies, such as the US dollar, to save their funds. After all, Bitcoin has a high volatility of value, which can expose savings to even greater risk than if the population left their savings in the national currency.
It is just an unfounded rumor. The first preference remains other assets such as gold coins, which are more stable than Bitcoin. A few individuals from these nations may be investing in Bitcoin. But compared to the gold and USD volumes, this amount may look minuscule. The main reason is, as you have pointed out Bitcoin volatility remains too high to be used as a store of value.
Have a look at the following graphic:
The image comes from the following tweet:
https://twitter.com/CryptoWelson/status/1190094660578037761/photo/1
I wonder whether the surge in the bitcoin price that started in March/April is correlated with the Hong Kong riots which started on 31st March 2019 and are still ongoing.
Honestly, this was never before. because in China or in Hong Kong, there's always bad news about crypto. They say the majority are fraudulent and encourage people not to invest in it. so that has led to many people not being aware of bitcoin over the past time. As for the charts above, I think that only a few people in that country buy more bitcoin because they think bitcoin is at the bottom, and it's sharks. They collected a lot of bitcoins and later sold them at higher prices. The image comes from the following tweet:
https://twitter.com/CryptoWelson/status/1190094660578037761/photo/1
Quote
Demand for #Bitcoin in economically volatile regions reached record highs in 2019.
Since 2013, volumes on Argentine peso, Hong Kong dollar, and Venezuelan bolivar bitcoin pairs have exceeded $600 billion in total value.
Since 2013, volumes on Argentine peso, Hong Kong dollar, and Venezuelan bolivar bitcoin pairs have exceeded $600 billion in total value.
I wonder whether the surge in the bitcoin price that started in March/April is correlated with the Hong Kong riots which started on 31st March 2019 and are still ongoing.
I heard from some news that the hongkong riot just only increase the use of bitcoin to store their wealth a little. Quite the opposite, people there are trying to move their assets to a country with good stability and if possible to gain a permanent residence aswell since they probably worry that their assets will be in danger.
Quite different to country with fragile economy that uses bitcoin to seek profit instead of utlising its function of stroing wealth which quite honestly too volatile.
Quite different to country with fragile economy that uses bitcoin to seek profit instead of utlising its function of stroing wealth which quite honestly too volatile.
Demonstrations in Hong Kong really hit businesses there, as evidenced by the release of investments from Hong Kong dollars into other foreign exchange investments. This led Hong Kong's economy to recession. The impact of the demonstration was felt by me as an exporter of seafood such as lobster & red corral trout. As a result of falling demand from the Hong Kong market, prices have become very cheap.
Demonstrations in Hong Kong were used by the United States to harass China as evidenced by the US Senate's move to pass a bill to support protesters in Hong Kong. There were many conflicts of interest there. Both from the Chinese government, the Hong Kong Government, demonstrators, the United States, and even Taiwan.
While the increasing use of bitcoin and other crypto in Hong Kong because many demonstrators adopted Bitcoin as a form of protest against the interference of the Chinese government in Hong Kong. The demonstrators also received support from various crypto exchanges in Hong Kong with a water donation program for Hong Kong demonstrators.
To be honest, I'm a little surprised that countries with hyperinflation now prefer Bitcoin instead of global reserve currencies, such as the US dollar, to save their funds. After all, Bitcoin has a high volatility of value, which can expose savings to even greater risk than if the population left their savings in the national currency.
But Bitcoin as a storage of vallue is very volatile. On that way they might also loose their assets because there is no guarantee of positive movements.
Bitcoin can't help countries with volatile currencies and economy because it's volatile itself and they need stability for progress. It can only help individuals who are good investors or trader.
Bitcoin can't help countries with volatile currencies and economy because it's volatile itself and they need stability for progress. It can only help individuals who are good investors or trader.
I still believe that these news reports are inflated. Bitcoin is not suitable as a store of value. For that purpose, you need to use United States Dollar banknotes, or gold coins/bars. Bitcoin was trading at $10,000 per coin a few days back. And now its exchange rate has fallen to $7,100 per coin. Anyone who considers such an asset as a store of value is out of his mind.
I guess they might be choosing bitcoin because they believe on its long run potential, that is exactly the opposite of their local currency which is losing value without chance of recovery. But it's still a very risky idea.
Jump to: