Topic: Bitcoin demand in economically volatile countries surges - page 5. (Read 803 times)

Have you ever thought that the soaring value of cryptocurrency exchanges in countries experiencing military conflict was caused by TINA (There is no alternative). Let's discuss one by one

- Venezuela
Venezuela is a country that is subject to a total embargo by the United States. The world banking system is controlled by the United States. The use of bitcoin as a payment tool there appears to facilitate the transaction of payment of crude oil to suppliers in Venezuela. There is no alternative to receiving money from outside the except using blockchain and also as an alternative to get assistance from other countries without America knowing.

- Argentina
Argentina is a country experiencing economic crisis due to inflation so that to maintain the fall in the value of its currency limits the purchase of USD and gold, but there are no restrictions on the purchase of bitcoin. this policy makes the demand for bitcoin and other cryptocurrency surges in Argentina and even the high demand makes bitcoin prices higher in Argentina than in other countries. There is no alternative to investing and keeping their value of money except bitcoin).

-Hongkong
Demonstrations and chaos in Hong Kong against China caused a sluggish stock and property market because the majority of Hong Kong's economy was supported by the tourism sector and business hubs in Asia (harbor hubs and also trading company centers gathered besides Singapore). with the social chaos and riots causing investor pessimism in Hong Kong so they are looking for alternatives on how to make investments.

For now, bitcoin is still believed to be relatively safe assets when there are many problems.

No. That's not the point of it. The reason why most of their economies are so volatile and unstable is mostly due to the poor governments, and the centralized systems they have.

They go to bitcoin because it isn't managed by a government, and while tether is controlled by the company behind it who organizes it, bitcoin is uncontrollable, and even if the prices are fairly volatile, it's better then the other stable coins and how they operate.

Can't blame them for trying to find ways to retain their money's value since their currency is either quickly becoming worthless or there is the danger that their bank accounts can get locked (like what HKers fear). Of course there is still the issue that bitcoin prices swing somewhat wildly when valued in fiat but when it comes to portability, it's a very good option.

Should they need to flee their country they can just leave and open their wallet elsewhere. This would be unlike carrying their currency or dollars. For those staying though, I still think USD is still a good enough option. Countries that have their currency collapsed usually just switch to USD.

Dont you guys think its kinda funny though for people in economically volatile countries to try to find stability using such a volatile currency like BTC?...At least if they convert it to tether or something.

Whats cooler to me is the fact that its a world currency and it can benefit people in countries where the value of their money is really low compared to the USD or EUR. People in less developed countries can work online for higher wages paid in crypto.

We had a really long period of global peace in the last 60 years. There were conflicts like the one in former Yugoslavia, but overall these wars were small if we compare them to what was happening in the 19th and early 20th century. IMO this is the main reason for the recession. War fuels the economy and we had no war for a long time. Some governments are making sure they participate in an armed conflict all the time, like the USA. They went from fighting in Vietnam to the Gulf War, then to Iraq, Afghanistan, Syria... America has to constantly be at war with someone to stop itself from falling into a crysis, similar to the Great Depression.

many benefits and expectations offered in investing in cryptocurrency and that makes a lot of people who start investing but if you know the risks that will be obtained certainly if we do not understand the losses we will get in investing and cryptocurrency I am sure will be needed along with the changing times and technology

Because of the bad governmental policies and the state of their economy also we should understand that soon enough it is actually going to be a global recession and at that time it won't be only countries like them using Bitcoins but the whole world will be there and Fiat is getting weaker and weaker and the jobs are declining and the number of them runs in millions in only one country !
These are all the signs of upcoming recession.!

Basically there will be no order in the price of products and goods that they need to buy. As a result, there might be an economic crisis since one country needs to be organize in order for their economy to be stable. They should first utilize stable currency and not prioritize bitcoin for this purpose as the volatility will make them suffer furthermore.

At least Bitcoin is volatile in 2 ways, up and down  Most of these countries have a very high inflation national currency so holding that doesn't make any sense. They flee to bitcoin because it is easy to buy, transact and use even though it is still volatile. A currency that can go up or down is more preferable than a currency that can only go down, so it makes sense that people are buying bitcoin there. I'm glad cryptocurrency can finally be used for some real life purpose and can actually help people be safe from their governments.

I don't know whether to be happy with this sudden adoption of bitcoin in other countries or not because they're experiencing a crisis... But one thing for sure is that bitcoin is helping them to survive their everyday living which their local currency cannot support. The only concern here is the volatility of bitcoin as well. Their currency is already not stable yet they're investing on something volatile as well. The con is when the price is low, it'll be hard for them as well

If you look at the grand scheme of things then a few millions is not a huge volume of trade and it is just peanuts but if you consider the financial crisis situation in a country you should understand that people are willing to trust the bitcoin market and trading is going on despite the financial issues they are facing where people are not able to get jobs or basic living facilities, so these amounts are huge considering their real state of their economy.

The charts make it look like there is a lot happening, but when you for example calculate the volumes in Venezuela back to the USD, it's no longer impressive.... actually, volumes have gone down in USD not up.

You can't tell me that $3-$5 million in volume on a weekly basis is anything to pay attention to.... it's peanuts in the grand scheme of things, so unless they grow their volumes seriously, there is not much point focusing on them.

bitcoin is not new so its normal that its popularity increase and people  start to check it but there are those people that buy btc not because they want to make profit in the form of investment but because they want to use it as a curency like for example on those country that has a financial crisis  . they look for alternatives and they choose cryptos such as btc but bitcoin is not the only coin that is available on the crypto market , there are those altcoins that also have thier own advantages  .

Well, that is not surprising. People from those countries ain't just buying Bitcoin as an alternative to their Fiat, they are buying in the hope of making profits in the future. As Bitcoin has more advantages over other alternatives, they go for it.

yes I agree with you when a crisis occurs part of the stock market will be affected and this makes some investors will secure their assets to a safer place. and some of the investors chose bitcoin as an alternative investment. and what causes bitcoin demand to increase in Venezuela is because there is hyperinflation, which causes the fiat currency to fall. so they looked for alternative payment methods and they chose bitcoin. bitcoin can be a solution when a country is experiencing an economic crisis.

True - but bitcoin is attractive in places here dollar bills are scarce. And dollars are scare in many developing countries. To get hold them, they need to sell goods in return for dollars and that's not easy given the global competition. So changing your local currency into bitcoin is easier. You can then change the bitcoin into dollars at a later date. 

Technically this events leads to people in conclusion that the main reason for the cryptocurrency or bitcoin price increase is the riot and the news concerning hong kong, not considering the fact that the market adoption of cryptocurrency in a holistic view is getting higher and higher over time. With regards to the economy struggling, would it be better to consider using XRP or other crypto with low transaction fees instead of bitcoin? Take note, economy is struggling, people are so, why don't we maximize our cryptocurrencies capabilities to solve such issues.

It's not hard to secure at all, whatever that means. The most common form of Gold is jewelry. It's very easy to obtain and exchange for fiat currency when you want to sell it. It's also a convenient way to escape the financial system of your country without raising any suspicion of capital flight, because buying jewelry is a common practice pretty much in every country.

In the end, nothing goes above dollar bills in countries amidst financial chaos. Bitcoin is a great option if you want to secure a part of your wealth, but too much exposure isn't something I would recommend because you want stability, not volatility. The benefit of the dollar is that it is stable and you can spend it pretty easily because there is plenty of demand from local folks and businesses to accept it.

Bitcoin has never really been stress tested in such scenario, hence the reason for me to not follow the herd and say it will help a lot of people. I don't think it will at this stage.

It is really impossible to find out the real reason for the price rise and the price started rising during the Hong Kong riots and it can be a mere coincidence as every time when ever there is a rise or fall in the price of bitcoin people like to link that to the events globally even if it has not value what so ever. The main reason people are looking to invest in bitcoin is because of the economic uncertainty in some countries where the economy is struggling because of inflation caused by bad policies and they are looking for a viable currency that cannot be controlled by the government.

If the economy of a country is volatile where there's an option that equally volatile aswell which is cryptos It's totally understandable that the citizens are going to all in to cryptos anyway, bitcoin is accepted worldwide meanwhile owning property or cash there could gone anytimes. Although the surges I'm however pretty sure that most of the people would prefer USD anyway because it's stable.

That maybe the case but however the volatility is too risky if you are living in a country where the economy is relatively weak, every cents matter.