Bitcoin demand in economically volatile countries surges - page 3.

alyssa85

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Quote from: LUCKMCFLY on November 12, 2019, 01:24:33 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.

LUCKMCFLY

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Quote from: alyssa85 on November 02, 2019, 04:51:30 AM

~snip~

This is only the statistics for Localbitcoins.com, other Exchanges that also move a lot of volume in operations are not taken into account, however it is necessary to emphasize that Venezuela continues to have increasing numbers in terms of volumes, since the adoption is very large every day, In fact, if all Venezuelans knew about technology, they would return to their country to work on it, whether in trading or otherwise to acquire Bitcoin.

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.

aardvark15

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Quote from: alyssa85 on November 02, 2019, 04:51:30 AM

Have a look at the following graphic:

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.

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.

In countries where the government and economy are unstable and in situations with high inflation, cryptocurrency may be a good alternative. It can provide a safe haven for your money. It also allows access to the funds from many places around the world.

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There is increasing demand particularly from those economically volatile countries. This is all because of the devaluation every citizen of the country experience. Now everyone want their hard earnings to be secured, and investing on bitcoin this can be achieved. Some fear of the volatility with bitcoin, one who understands better about its volatility invest and have patience to get the best out of it. With bitcoin as the demand increases the value too rises. With fiat to the demand the currencies were simply printed causing inflation. Such scenario is happening in most countries.

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Quote from: Vishnu.Reang on November 12, 2019, 01:23:22 AM

Quote from: tbterryboy on November 11, 2019, 11:33:07 PM

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.

The numbers are minuscule because the Argentinian peso has already devalued. Basically you could get a lot more bitcoin if you moved to purchase it BEFORE the crisis hit than after. Same goes for Venezuela - if you try to buy after the crisis you struggle - 1 Venezuelan peso only equals 180 satoshi, so you would need to do a lot of work just to get a few satoshi.

This is always the trouble - people move to buy bitcoin too late, after a crisis has hit, instead of pre-planning and acting before.

befriendmywater

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This is obvious because so many people around the world think that bitcoin is capable of very good growth over the years. they were manipulated by that concept from the beginning.
In my opinion, buying a lot of bitcoins is really a mistake when you are too confident in the future of bitcoin. It is risky because only manipulative organizations are holding the most bitcoins.
And if one day the sharks were constantly selling off, what would happen to those who believed in bitcoin? What will their country be like?
wow, i cant imagine it.

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Quote from: BitHodler on November 09, 2019, 05:02:59 AM

Quote from: EdenHazard on November 08, 2019, 03:10:46 PM

So it's not always have a good fairytale story that whenever certain country under crazy inflation... and then bitcoin or any cryptocurrency become their safe haven. That's wrong thought.

Crypto is too risky of a bet indeed. It could work out extremely well, but then you need the luck to have invested in or right before a longer term bull market where prices go up.

If you bought crypto in 2018 thinking it would help you counter the inflation rate of your country, you would have lost far more purchasing, plus you actually lost in units too because cashing out at a loss means you get less units back.

People in these situations aren't speculators, they need stability which can be found in the USD, which generally is the preferred store of value tool even though people here see it differently.

That's the wrong perception that most newcomers think about how bitcoin could help you out of the crisis.

You might find it as a safe haven if you do it in the short term only , that's why the demand surges ... it won't last forever. you need to find other alternatives as soon as possible other than bitcoin... you could choose stable coins but still it's not recommended at all due its controversies hasn't been answered yet.
A big bet of course for those who choose bitcoin as their part of escape plan . Overall you are stepping in to a bigger risk once you do this especially when it's involved a huge amount of money.

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Quote from: tbterryboy on November 11, 2019, 11:33:07 PM

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.

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Quote from: hello_good_sir on November 02, 2019, 05:08:48 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.

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.

tbterryboy

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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.

But, I'm wondering how exactly they are going to survive through bitcoin if not through the price increase. And moreover, it is not every one of them that could afford to buy bitcoins. Just like where I live, it's not everyone that has the money. Some people are struggling to survive with the little money they have, and putting that away to bitcoin in the name of making money, they will just end up starving. Most people use the little money they get for buying food.

shoreno

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Quote from: huige007 on November 10, 2019, 11:54:09 AM

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

Quote from: huige007 on November 10, 2019, 11:54:09 AM

Loss only occurs when people start panicking out and lose trust in their holdings. Otherwise, the road is a smooth one.

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 .

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Quote from: Google+ on November 09, 2019, 10:54:18 AM

Quote from: ?? on ??

This graphics game is common, because when many countries want to develop bitcoin with certainty, the graphs go up and down every year, this might be a way to open up new space for better cryptocurrency in the coming year

If you say the graph then this is the effect of the demand at the place where the compilation of requests is increasing then the price of bitcoin will also go up and vice versa then bitcoin should indeed be used for many people and many platforms should start working with the blockchain system so that it will grow bitcoin requests in a place of transition.

many entities and organisations trying to invest on blockchain based security tokens as well as trying to convert the Mazar blockchain secured firewalled business.
volatility and circulation of Bitcoin will decide the price in the market evaluation of every cryptocurrency. So every country should have some investors under the base of crypto to secure them.

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Quote from: BitHodler on November 09, 2019, 05:02:59 AM

Quote from: EdenHazard on November 08, 2019, 03:10:46 PM

So it's not always have a good fairytale story that whenever certain country under crazy inflation... and then bitcoin or any cryptocurrency become their safe haven. That's wrong thought.

Crypto is too risky of a bet indeed. It could work out extremely well, but then you need the luck to have invested in or right before a longer term bull market where prices go up.

If you bought crypto in 2018 thinking it would help you counter the inflation rate of your country, you would have lost far more purchasing, plus you actually lost in units too because cashing out at a loss means you get less units back.

People in these situations aren't speculators, they need stability which can be found in the USD, which generally is the preferred store of value tool even though people here see it differently.

Crypto currencies are not risky at all as long as the investor hold good knowledge of his coin and choose the right coin. If a person chooses bitcoin then obviously, all the risk disappears. He should try to buy the coin during dip like the present one and then sell it when the prices get high. Loss only occurs when people start panicking out and lose trust in their holdings. Otherwise, the road is a smooth one.

Obito

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It can definitely be. Maybe the impact was just that huge enough that it has still a tail effect upto this. Are Hongkong still in enmity between China? Maybe it has to do with that. In addition there are countries in which you showed has of course a responsibility of bitcoin surge till now, in addition to that huge companies take a part of the action as well. I do think that 2019 will be all good for crypto marker, don't ya think guys?

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Quote from: ?? on ??

This graphics game is common, because when many countries want to develop bitcoin with certainty, the graphs go up and down every year, this might be a way to open up new space for better cryptocurrency in the coming year

If you say the graph then this is the effect of the demand at the place where the compilation of requests is increasing then the price of bitcoin will also go up and vice versa then bitcoin should indeed be used for many people and many platforms should start working with the blockchain system so that it will grow bitcoin requests in a place of transition.

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Quote from: EdenHazard on November 08, 2019, 03:10:46 PM

So it's not always have a good fairytale story that whenever certain country under crazy inflation... and then bitcoin or any cryptocurrency become their safe haven. That's wrong thought.

Crypto is too risky of a bet indeed. It could work out extremely well, but then you need the luck to have invested in or right before a longer term bull market where prices go up.

If you bought crypto in 2018 thinking it would help you counter the inflation rate of your country, you would have lost far more purchasing, plus you actually lost in units too because cashing out at a loss means you get less units back.

People in these situations aren't speculators, they need stability which can be found in the USD, which generally is the preferred store of value tool even though people here see it differently.

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Quote from: goaldigger on November 06, 2019, 06:26:45 PM

I’m not surprised with the current adoption in Hongkong and since the tension there is increasing its really good for them to save the value of their money and put it on bitcoin. Countries that are experiencing a big down on their economies are tend more to adopt bitcoin, this will be the safe place for them and its good for the cryptomarket.

We have seen it that those people who looking to store the value through bitcoin to avoid their money value getting worse it's ended up disappointing as the price of bitcoin falls down suddenly and instead protect you from an inflation it's sometimes makes your money value decreased.

So it's not always have a good fairytale story that whenever certain country under crazy inflation... and then bitcoin or any cryptocurrency become their safe haven. That's wrong thought.

Triffin

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Quote from: Webetcoins on November 06, 2019, 12:43:42 PM

Quote from: panganib999 on November 05, 2019, 10:11:37 AM

The said countries like Venezuela suffered hyperinflation during 2016 that it reached 274% in 2016, got higher during 2017 and reached 863%, 130,060% in 2018 and got worse when 2019 entered that the rate raised up to 282,973 then had the rate at 4,679% during September this year, the country's crisis was caused by their International monetary fund where they wanted to print more private money, the inflation was just so catastrophic especially its impact to busineses that made them enter cryptocurrency that bacame their safe haven and that will save them from their own currency's crisis.

The problem of inflation and hyperinflation is highly linked with the printing of local currency. Whenever the local money is printed in huge amounts, it decreases its worth and increases the rates of other stuff. This usually is done by the corrupted governments and such institutes can be wiped out by introducing blockchain in the region. Crypto coins have saved common people from such crisis.

This is why people are in favor of bitcoin since they are not centralized or in simple words, government can somehow monitor it but they cannot control its generation or production. One of the major reasons why we have expensiveness of bitcoin is its limited supply and the demand is high. These sick governments who are destroying economy of the state shall also follow rules of bitcoin market.

goaldigger

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I’m not surprised with the current adoption in Hongkong and since the tension there is increasing its really good for them to save the value of their money and put it on bitcoin. Countries that are experiencing a big down on their economies are tend more to adopt bitcoin, this will be the safe place for them and its good for the cryptomarket.

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Quote from: Kyraishi on November 06, 2019, 03:53:52 PM

Quote from: enhu on November 05, 2019, 10:48:03 AM

The amount of money isn't that big for a country that needs more of it though.

Quote from: AicecreaME on November 05, 2019, 10:34:34 AM

This is a good news and like a scenery to me seeing countries that are slowly adopting bitcoin as a real currency, though most of the countries are not still into cryptocurrency, but this is a big hope that someday in the future, all of the Governments will open their hearts and eyes to accept that bitcoin and other cryptocurrencies is not a threat, but a blessing in disguise.

Hopefully that could happen. The more countries applied blockchain on their daily systems the easier to see cryptocurrencies are also going to be adopted in different industries, right now cryptocurrencies are growing in numbers for each uses.

Bitcoin may just be use for now by the people in the above countries to store the money they have in times uncertainty like the political instability.

Hmhm. I don't think you could classify this as a "crypto revolutuon", it's mostly just a bunch of rich people that already have assets to protect are looking towards the crypto side of things in case their entire finance sector collapses.

I'm going to guess and think that a lot of people in those countries have already lost a lot of their funds due to the situation of their government/war.

How the media deals with these issues is going to be important.

yeah they are just using bitcoin temporarily once the economic problems settle down they will return to use the cash anyway. It is not like bitcoin is being adopted there they are just trying to find a way of saving all their money instead of betting on their volatile economy which could make them poor anytime.
It is like when riot happens in Hong Kong the news about people converting their wealth to bitcoin surfaces across the media.

Topic: Bitcoin demand in economically volatile countries surges - page 3. (Read 825 times)