Venezuela has shown a massive increase in Bitcoin adoption over the last year when compared to the data from the past. The data also shows that the trading volume for BTC has also increased drastically.
Venezuela, Argentina, Colombia, and Peru are some countries that are affected a lot by inflation and government policies that have caused widespread panic and rejection of the government currencies. People of these countries tried to find respite in US dollar but since its inception, Bitcoin has gained more attraction and affection by developing countries.
As per the data obtained from Coin Dance, the weekly local Bitcoin volume for Colombia has increased more than twice in the past four months.
In a comparison of the weekly volume of January 2017 to that of January 2019, it can be seen that the weekly Bitcoin volume has increased from a mere 135 BTC to 364 BTC. However, the BTC trade weekly trade volume reached a maximum of 759 BTC in the last week of 2018.
The same can be observed in Columbia’s neighboring countries which are affected by hyperinflation causing the fiat currencies of the country to lose its value.
Venezuela’s weekly Bitcoin Volume has increased 11 BTC in the first week of January 2017 to a staggering 190 BTC in the first week of January 2019. However, a similar trend can be observed in the weekly Bitcoin volume in the last week of December 2018, where the trade volume was at 252 BTC.
The weekly Bitcoin volume for Peru can be as seen in the chart below. The weekly Bitcoin volume in the first week of January 2017 was 17 BTC but the volume has risen to 190 BTC in the first week of January 2019.
@toyhousevzla, a Twitter user commented:
“here is the answer,,, 1 december bolivar 430 per $. 1 january bolivar 750.. today 2800 bolivar per $, the inflation is brutal, If you can’t find dollars to buy on the street the easiest way is through btc and is more expensive like 20%”
Another user, @cryptoNinja35 commented:
“Imagine how much wealthier they’d of been if they had been buying stable coins?”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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