All over the world, bitcoin continues to make headlines. Since its creation in 2009, bitcoin has always been in the spotlight.
According to a report on Cointelegraph, the Great Lakes Science Center in Cleveland, Ohio has become the 3rd major museum to accept bitcoin as payment.
Bitpoint Japan, one of the first crypto exchanges to be fully licensed by the Japanese Financial Services Agency, is now expanding to its 6th country worldwide, according to a report on Bitcoin.com.
Over the years, bitcoin has become a driving vehicle for people who don’t have access to traditional banking and financial systems. Take ZamZam Water’s and Paxful’s #BuiltWithBitcoin campaign. With that campaign, schools have already been built and scholarships have been given. This has lead to the “explosion of activity among users” in 2018 according to Leigh Cuen of Coindesk. According to the report, transaction volumes on platforms like Paxful have increased by 130% despite the volatility of bitcoin’s prices.
With that being said, there may be another region of the world that might need bitcoin’s services – Latin America.
Latin America’s struggling economies
The two examples that can best represent Latin America’s struggling economies are Argentina and Venezuela. According to a report on Forbes, Venezuela’s annual inflation rate at the end of 2018 was 80,000%.
Argentina is also not a stranger to inflation. Their economy suffered around a 30% inflation in 2018, according to a report on Bitcoinist. With these financial struggles loaming around the Latin America Region, it is easy to understand why people from these parts look at bitcoin as a reliable alternative to take control of their finances.
Bitcoin as a way out for Latin America
With Latin America’s struggling economies and hyperinflating currencies, how could it use bitcoin as a way out? There are two main ways:
According to an article on Forbes, government-issued controls on foreign exchange have made it much harder for citizens to access foreign currencies as a “stable source of value”. This, in turn, has resulted in an increased interest in the bitcoin/cryptocurrency market in Venezuela. The article goes on to say that this represents “a profound case study of bitcoin’s potential positive impact on the struggling Venezuelan people.”
A release from the government
With the political problems in Venezuela, it is understandable for the citizens to want to be separated from the government. Issues like the dispute for the presidency (added to the struggling economy and inflation) are dividing the citizens.
According to an article from LiveBitcoinNews, the fluctuating rates of local currencies are making them very unstable. These are a result of the power struggle in the government and individuals can benefit greatly from separating themselves from the mess, and “flocking to government-free cryptocurrencies can be an important first step” to achieving true separation from the problematic government,
Bitcoin and its current state in Latin America
The usage of bitcoin is growing rapidly in Latin America. According to a report on Bitcoinist, Argentina has experienced its largest exchange for bitcoins in September 2018 (6.9 million Argentinian Pesos). While Venezuela has also produced its second-highest week in 2018 at almost 295 Bolivars. These statistics were derived from Coin Dance, a reliable source for bitcoin statistics.
Got thoughts on what crypto and Bitcoin can do to help the people in Latin America? What do you think about this newfound love affair? Let us know in the comment section down below.
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