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Venezuela Sets New Record For Bitcoin Trading In LocalBitcoins Amidst Raging Inflation

Cryptocurrencies can be effective savings instruments when you are living in a country with a failed legal currency. This has been already proven in African countries before, but the case that we are about to show today is an eloquent way of proving how cryptocurrencies can indeed substitute currencies and help people get by the day without losing a lot of their savings due to inflation. Venezuelans are more and more embracing cryptocurrencies every day, and this fact is shown by the volume of trade that Venezuela is showing in platforms like LocalBitcoins.
Localbitcoins is a peer to peer platform that lets users trade bitcoins between them without having to disclose their identity completely, a thing that is of paramount importance if you live in countries like Venezuela and you don’t want to be identified by the government, and also has a convenient escrow system to avoid fraud and scams. According to coin.dance, a site that aggregates data from all trades of several exchanges per country, Venezuelan trading broke records last week with more than 20 trillion of bolivares (the local currency) traded for bitcoins. The last record corresponded to the week before that, when more than 17 trillion bolivares changed to bitcoin by Venezuelans.
The truth about this is that Venezuelans are turning to cryptocurrencies as a mean to save their money from the raging inflation that the country is facing right now with prices rising daily, a thing that makes the local currency inefficient to use as a saving tool. That is why they are buying bitcoin and storing them before trading them again for food and supplies. even with the recent drops that frequently occur with cryptocurrencies like the one that happened yesterday when bitcoin dropped its value significantly, it is still better than holding Venezuelan bolivares for the locals.
This goes to show that when the cryptocurrency model matures and the market sheds its current volatility, cryptocurrencies will be a viable option to substitute local fiat currencies. It is already fulfilling this role in countries like Venezuela and it will do so in other countries in the future.

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