Bitcoin demand in economically volatile countries surges - page 2.

LUCKMCFLY

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The demand in countries with economic crises that have much enhancement with an increase in inflation are the big Bitcoin adopters, not only Venezuela, Argentina, now Chile is joining, Colombia can soon do it, but the reason is simple, Bitcoin see it as a shelter for your money, regardless of its price drop is still the best option even above gold.

The volumes have been growing little by little in Chile, localbitcoins has some statistics:

Source: https://coin.dance/volume/localbitcoins/CLP

There are also other Exchanges that may have increased their volume, adoption due to economic problems is usually a plus for Bitcoin demand.

Vishnu.Reang

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Quote from: bitbunnny on November 25, 2019, 07:30:24 AM

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.

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.

KrisAlex18

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Quote from: GideonGono on November 25, 2019, 03:32:37 AM

Quote from: sapnu on November 24, 2019, 02:50:56 PM

Quote from: BitHodler on November 23, 2019, 03:39:24 PM

Quote from: iv4n on November 23, 2019, 03:12:55 PM

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.

Stability of cryptocurrency is impossible since we all know that cryptocurrency is volatile in terms of value, meaning the price is changing time by time when there are transactions happening all around the world. The idea is that if we experienced downfall as of now, do not lose hope because there is a big chance that the price will come back again to its high value, all we need to do is to wait and HOLD that particular token we have. For you to gain a lot of money or profit you should learn different things with regards to the token you are holding.

Theoretically, it's possible that's why I disagree with your statement that cryptocurrency could not be stable. Prices face volatility and minimizing this volatility into a certain point where the changes aren't that significant i.e. including the stocks, cryptocurrencies and even the products we buy. It is a matter of how huge the market is meaning a market with higher volume would tend to have higher resistance and wall in so in a sense the prices would appear to be stable due to low volatility or rather the movement of the price is minimal.

This theory has less than 30% to be true. Cryptocurrency can be stable yes, but who will be the regulator? adding the fact that relationships between country are hard to please. Especially now with the current market situation where competition is highly on with various coins and projects volatile cannot be deny the main reason why we could not be into that theory. Plus the growing user of cryptocurrency whom they see as an investment rather than currency.

el kaka22

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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.

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Latin American payment providers are now using cryptocurrency:

https://www.coindesk.com/60-latin-american-banks-can-now-use-bitcoin-for-cross-border-payments

Quote

Bantotal is a core banking service provider based in Uruguay that services over 60 different financial institutions across 14 different countries. According to a Bantotal spokesperson, an estimated 20 million people use Bantotal’s money management services.

“Bantotal is one of the biggest banking providers in Latin America and is a huge player not just in Latin American but the greater Pacific,” said Sebastián Olivera, founder of the Uruguayan Fintech Chamber. “For me, Bitex provides a great solution for payments and they will be boosted by the structure and name of Bantotal.”

The partnership means that Bantotal clients will be able to access Bitex services in a marketplace of other traditional financial services that Bantotal offers through its BDevelopers program.

these transfers are significantly faster, according to Beaudroit, who said payment times for exporters between Argentina and Paraguay in one instance last February dropped from one month to one hour after switching to Bitex’s cross-border payment services.

Looks like this is about businesses using crypto to speed up the rate they get their money.

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Quote from: princesspoppy on November 24, 2019, 05:56:53 PM

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 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.

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Quote from: princesspoppy on November 24, 2019, 05:56:53 PM

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.

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.

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Quote from: sapnu on November 24, 2019, 02:50:56 PM

Quote from: BitHodler on November 23, 2019, 03:39:24 PM

Quote from: iv4n on November 23, 2019, 03:12:55 PM

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.

Stability of cryptocurrency is impossible since we all know that cryptocurrency is volatile in terms of value, meaning the price is changing time by time when there are transactions happening all around the world. The idea is that if we experienced downfall as of now, do not lose hope because there is a big chance that the price will come back again to its high value, all we need to do is to wait and HOLD that particular token we have. For you to gain a lot of money or profit you should learn different things with regards to the token you are holding.

Theoretically, it's possible that's why I disagree with your statement that cryptocurrency could not be stable. Prices face volatility and minimizing this volatility into a certain point where the changes aren't that significant i.e. including the stocks, cryptocurrencies and even the products we buy. It is a matter of how huge the market is meaning a market with higher volume would tend to have higher resistance and wall in so in a sense the prices would appear to be stable due to low volatility or rather the movement of the price is minimal.

princesspoppy

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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.

sapnu

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Quote from: BitHodler on November 23, 2019, 03:39:24 PM

Quote from: iv4n on November 23, 2019, 03:12:55 PM

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.

Stability of cryptocurrency is impossible since we all know that cryptocurrency is volatile in terms of value, meaning the price is changing time by time when there are transactions happening all around the world. The idea is that if we experienced downfall as of now, do not lose hope because there is a big chance that the price will come back again to its high value, all we need to do is to wait and HOLD that particular token we have. For you to gain a lot of money or profit you should learn different things with regards to the token you are holding.

BitHodler

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Quote from: iv4n on November 23, 2019, 03:12:55 PM

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.

iv4n

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Quote from: rose9696 on November 18, 2019, 03:41:01 AM

then this proves a very correct hypothesis. When a country has political and public debt problems, people will come to Bitcoin more and hold it for a long time.
This hypothesis was true after witnessing the purchasing power chart of Hong Kong people. I believe that in the future Bitcoin will have even more purchasing power.

People will turn to alternatives when their national currency lose money. 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.
I think its normal for people that live in economically volatile countries to seek for some safe heaven for their assets, bitcoin is the best for that until now, addition to that can be promising future, and that holding can worth much more some day.

wxa7115

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Quote from: Vishnu.Reang on November 12, 2019, 02:23:22 AM

Quote from: tbterryboy on November 12, 2019, 12:33:07 AM

Oh, before now I came across a post that says there have been a lot of people buying bitcoin in Argentina, and I thought that was not true, and now here's this post to verify that he was saying the truth. Well, that's good to see that a lot of people are now buying bitcoin and especially people in Venezuela; I hope that bitcoin is going to help a lot of them escape the poverty they are facing in that country.

It is true that the demand for Bitcoin in many of these countries are showing a small uptick. But if you compare the volumes from these countries to the global volumes, then you will find that these are still minuscule numbers. Venezuelans and Argentines are using the US Dollar and gold as the store of value. Bitcoin is much lower in priority.

Even if that is correct and people are not using bitcoin as much as they are using the US dollar and gold the fact that they are using bitcoin is a very strong sign that when things get ugly economically people are going to use whatever means they have available to protect themselves from the mismanagement of the economy by the governments and if this means using bitcoin then they will do it.

This is why I have always thought that the thing that is going to push the adoption of bitcoin all over the world is going to be a global economic crisis because people will finally realize that the whole system was arranged in such a way to benefit only the rich and they will begin to use anything to get out of that rigged system.

rose9696

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then this proves a very correct hypothesis. When a country has political and public debt problems, people will come to Bitcoin more and hold it for a long time.
This hypothesis was true after witnessing the purchasing power chart of Hong Kong people. I believe that in the future Bitcoin will have even more purchasing power.

gantez

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Quote from: lobat999 on November 02, 2019, 07:12:25 AM

This is no surprise at all since this scenario is all part of an ever growing Bitcoin and crypto adoption worldwide that is taking its natural course and I assume we would expect an even more vibrant Bitcoin and crypto industry in the coming years to come.

For my view on that I think those countries with volatile currency are running into bitcoin and securing their money there for the fear of what can not be predicted about the their fiat. This is having a growing rate on bitcoin. For example, the awareness of what bitcoin is back then in 2017 and now are not the same thing. People have realized that you can invest in bitcoin or tether it.

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Quote from: shoreno on November 10, 2019, 03:04:15 PM

It's not . People can still loose with or without panicking because there are other reasons that they do like selling because they need the cash or they loose the value of their asset because it fell down .

If you really trust the bitcoin market then you would know that the market will recover eventually and without that trust you cannot invest in a market and when you make a decision to invest then you need to be a fool to sell at a loss, understand the meaning of the term investment and if you do that you will never sell at a loss and you do not need to be genius to know to hold when the market goes down.

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Quote from: alyssa85 on November 13, 2019, 09:24:17 AM

Quote from: LUCKMCFLY on November 12, 2019, 02:24:33 PM

The high volumes of Hong Kong is a normal consequence that is caused by the Chinese government itself, they know very well that they had until recently a lot of prohibitions regarding Bitcoin and Crypto, now that CHINA is in the "Love" phase with Blockchain and bitcoin, to open the way to their cryptocurrency or stablecoin they are preparing the ground for them to use it and adopt their cryptocurrency.

China is not in love with bitcoin. It's in love with the idea of creating it's own coin. It still has currency controls and a complete ban on exchanges.

I think the high volumes of bitcoin buying in Hong Kong is down to people there wanting to get their money out in case they get invaded by China.

If they are not in love with bitcoin, it shows that they are not in love with cryptocurrency because bitcoin is the only true technology that really represent what cryptocurrency is, and that which they claim to want to create is something that is going to be similar to digital payment system and I think that people will not be accepting it that much because there are other existing ones.

If they want to create a real cryptocurrency, they should do it in the right way because any of these currencies must definitely have a tier with bitcoin. Any currency that cannot be paired with bitcoin should not be counted as cryptocurrency, because not everyone will want to use their fiat to purchase such coin for privacy purpose and if you see the additional benefits of bitcoin, the people of china will always take it over their own currency.

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Quote from: shoreno on November 10, 2019, 03:04:15 PM

Quote from: huige007 on November 10, 2019, 12:54:09 PM

Crypto currencies are not risky at all as long as the investor hold good knowledge of his coin and choose the right coin.

Depends if what cryptos are you investing to . The risk is not the same on every cryptos . Btc has the highest risk but has the highest reward also . No matter how knowledgeable you are , you are not perfect to predict the price even if you pick the less riskeir coins , so the chance of loosing is still present

The risk that we are even talking about in bitcoin, is not really a terrible risk, the risk of bitcoin is just the volatility and the fear is that we could buy a coin right now and then see it dump within the next minute, but we also need to understand that bitcoin is such an established coin that even if it drops in price, it would always recover back later in the future no matter how long it is.

I know that those people that have invested in the last bull run when the value became like $20k, and then suddenly drop, they would have counted that has losses, which I don’t see as losses except the older of the coin panicky sell the coin, provide they don’t sell the asset out of panic, they will always get the opportunity in future to recover it back which we might now say that they lost their time instead.

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Quote from: BartS on November 12, 2019, 01:37:17 AM

Quote from: hello_good_sir on November 02, 2019, 06:08:48 AM

I think that a lot of these investors and people that are suddenly entering the Bitcoin scene see it as the only safe haven away from their own country and it's currency.

For example, with Venezuela it has been used as a replacement for their peso currency for years now, their own currency has been unstable since forever and I think it might become a permanent situation soon. Same with Argentina except they are fighting it and don't want Bitcoin to replace their currency. Hong Kong is having issues with China, so that explains it easily.

And this is very telling, even if governments do not want to recognize bitcoin as a currency what they fear the most is that people do because once this process begins to take place they have no way to stop it.

Well actually there is a way for government to stop it, but only from making it illegal and prohibit to use of cryptocurrency under their jurisdiction, that could stop the circulation of cryptocurrency in an area. No one wants to run illegally. But most probably government would not do it, they would rather change the system than lose their financial stance just because of this, blockchain particularly.

Quote from: BartS on November 12, 2019, 01:37:17 AM

It also makes sense, we see that in countries where the currency and the economy is still strong there is not a need for those people to adopt bitcoin and they keep using their fiat, but once fiat begins to have problems people have no problem trying to find and use other alternatives.

There is nothing wrong about the fiat currency, it just happened that we have a better type of currency to use but is decentralized and no one has the control to it making it vulnerable for mass rejection. But we also delivering solutions regarding this so we can use a partial of the concept of cryptocurrency or maybe a full one in the future.

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Quote from: alyssa85 on November 13, 2019, 09:24:17 AM

I think the high volumes of bitcoin buying in Hong Kong is down to people there wanting to get their money out in case they get invaded by China.

High volume in relative terms of course, because the volumes in Hong Kong are still peanuts compared to the volume in other Asian countries such as Japan, South Korea, and so on.

I am more interested in finding out what the next stage is for people after having bought Bitcoin.... will they keep it in Bitcoin or convert it to dollars? Volatility is quite a concern especially for those having bought a lot of Bitcoin.

I really hope they will hold their Bitcoin's but wouldn't be surprised to find out that people convert it to dollars, either partially or in full.... their main goal was just to get money out of the country.

Topic: Bitcoin demand in economically volatile countries surges - page 2. (Read 803 times)