Bitcoin Trading in Venezuela Just Hit an All-Time High Despite a 40% Price Premium
Peer-to-peer bitcoin trading volumes in Venezuela just hit an all-time weekly high. | Source: Shutterstock
According to the data provided by LocalBitcoins, a peer-to-peer cryptocurrency trading platform, the weekly volume of Bitcoin in Venezuela achieved a new all-time high.
Measured in Bitcoin, the weekly volume of the BTC-to-Venezuelan bolivar (VES) pair increased to 2,454 BTC. In U.S. dollars, that is worth $8.95 million per week and $1.29 million per day.
Matt Odell, a cryptocurrency researcher, said that the volume would be higher if the 40 percent premium in the Venezuelan market is priced in.
2454 bitcoin weekly volume x $3650 = $8,957,100 this week ÷ 7 = $1,279,585 per day on average, higher if you account for the ~40% price premium which I didn’t.
— Matt Odell (@matt_odell) February 11, 2019
Had the high premium of Bitcoin due to its scarcity in the Venezuelan market been considered, the volume could reach around $14 million at $5,800 per Bitcoin.
Demand For Bitcoin in Venezuela is Skyrocketing
Amidst an intense economic recession and uncertainty in the country’s government, the Venezuelan bolivar has essentially become valueless.
The people of Venezuela have continued to suffer from a lack of basic necessities in the past several months. The situation has noticeably worsened when the government blocked U.S. humanitarian aid from coming into the country through the Columbian border.
NBCNews reported that sacks of rice, canned tuna, and biscuits packed by volunteers were stopped by the border by the Nicolas Maduro administration, which is scrambling to remain in power following the emergence of opposition leader Juan Guaidó.