Bitcoin peer-to-peer (P2P) trading volume in several countries, including India, Mexico, and Argentina, has hit all-time highs this week, according to data from LocalBitcoins and Paxful.
During the last two months or so, Bitcoin has been more stable than ever, fluctuating between $9,000 and $10,000. Binance CEO Changpeng Zhao jokingly compared the oldest cryptocurrency to a stablecoin. However, people across developing countries are buying Bitcoin en masse, at least according to the volume figures provided by P2P crypto exchanges LocalBitcoins and Paxful.
Crypto researcher Kevin Rooke observed the surge in Bitcoin trading volume in countries like India ($3.4 million per week), Ghana ($1.7 million), Argentina ($1 million), Philippines ($1 million), Mexico ($700 thousand), and Egypt ($150 thousand).
Rooke used data from UsefulTulips, which explores the volume figures from the two P2P exchanges to create combined charts.
Thus, Bitcoin is seeing adoption by regular people in countries whose total population exceeds 1.7 billion.
Last week, CryptoPotato reported that India-based centralized crypto exchanges saw a surge in trading volumes as well. The interest in Bitcoin increased after India’s Supreme Court reversed a previous decision of the Bank of India to ban crypto businesses. Also, the surge in trading volumes coincides with the strict lockdown measures imposed across Indian states and cities to curb the spread of the coronavirus.
Other countries saw a similar increase in P2P transactions. In Mexico, people are turning to safe-haven assets to hedge against the devaluing national currency. The Mexican peso has declined by 18% against the US dollar year-to-date.
However, it’s not only about developing countries. The US had also experienced a record weekly volume in Bitcoin trading on Paxful and LocalBitcoins last month. In mid-June, people traded over $30 million worth of Bitcoin in a week on the two P2P exchanges.
During the previous seven days, the volume figure was just below $30 million, suggesting that the interest in cryptocurrency isn’t fading.
In mid-April, the US unemployment rate hit a record peak of 15%. People are applying for unemployment benefits en masse. Meanwhile, everyone is hoping for an economic recovery.
The Federal Reserve has pumped cash like never before, fueling a stock market rally, but regular individuals are looking for reliable, safe havens that could preserve their savings in the long-term. Bitcoin is one such option. The cryptocurrency has a deflationary model and is regarded as one of the best methods to hedge against inflation.
This article was first published on: Jul 23, 2020
