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The growth of digital assets in third world countries - Binaryx

The growth of digital assets in third world countries

A breeding ground of cryptocurrency activity

Recently, we can highlight the fact that in some countries of the third world, namely in Venezuela and Hong Kong, the volume of trade in bitcoins has significantly increased. The reasons for this progress can be, for example, a decrease in total foreign exchange trading, and people’s desire to invest in stable assets. The same situation can be noted in South America.

As you remember, the Venezuelan crisis, which began back in 2019, received fairly widespread press coverage, impossible to overestimate. The essence of the problem was that as a result of the riots and attempts at coups d’etat, the exchange rate of the local currency, Bolivar, fell significantly.

In an attempt to ensure the value of their money, the residents of Venezuela adopted bitcoin, in favor of which its stamina, high level of development and stability played.

A remarkable fact is that with the filing of the Venezuelan government, a unique, local currency was created – “Petro,” which you could read about earlier in our blog.

Going deeper into statistics, we can say for sure that over the past year, 305.9 million US dollars were spent from Venezuela. In turn, Colombia and Peru took second and third places with 134.2 million dollars and 45.5 million US dollars, respectively.

Increased Bitcoin trading volumes ratio 

Despite this result, over the past two years, the trading volume in Venezuela has increased only 33%, and this can still be called a low level of increase.

Unlike Venezuela, Egypt boasted the highest percentage growth last year. Analysts say the increasing figure is about 70%.

The situation is absolutely opposite in countries where the government impedes the development of cryptocurrency business by any means. For example, in Hong Kong and Iran, the percentage activity is significantly reduced.

In any case, you can read strikingly different opinions and thoughts regarding this issue. Still, the fact remains: in countries where there are economic difficulties, citizens show an increased interest in the ability to store their valuable assets in cryptocurrency. Here you can also note a growing trend in the number of people requiring a decentralized and isolated financial system.