The volume on LocalBitcoins is witnessing a huge spike in crude-oil exporting countries like Argentina, Chile, Mexico, and Venezuela. The recent oil price meltdown has had a very negative impact economically on several countries. Countries that highly depend on oil exportation for the economy are suffering more than the others. Meltem Demirors, the Chief Strategic Officer at Coinshares, noted in a recent interview, said that they have seen some of the world’s most brutal, most persistent dictatorship and tyrannical regimes have been supported by the cash flow that comes from oil. She added that Venezuela has just lost it’s only source of revenue, and that’s oil.
Countries see a noticeable spike in the price of bitcoin.
Oil exporting countries that are seeing similar hyper-inflationary issues after the oil crash include Colombia and Nigeria. These countries are seeing a noticeable spike in commodity prices, including Bitcoin. Nevertheless, the number of Bitcoins traded in the region is still consistent with the last couple of months. In Venezuela and other South American countries, bitcoin is not used primarily as a store value but more as a bridge currency to obtain USD.
Several countries continue to battle hyperinflations.
Several of these countries are battling with problems of hyperinflation, where the government is printing heaps of cash, but the price of egg and milk is reaching parity with the minimum monthly wages. Even the United States has massively increased the supply of dollars, which has made people fear of hyperinflation in the future like other countries. The current situation presents a case for Bitcoin and other cryptocurrencies. However, the problem is far more adverse to be solved by a shift in currency. But because of political and technological prowess, these countries continue to lead the global economy.
The People’s Bank of China is also working on its national digital currency that supposedly would challenge the US dollar’s global dominance. The digital yuan is currently in the trial period and is expected to launch sometime this year.
