It seems that wherever authorities try and clamp down on cryptocurrency, the more the people want to participate, trade, and contribute toward the crypto ecosystem.
Take Venezuela, for example, where authorities went to strict measures to put a stop to Bitcoin mining, only for that effort to result in increased demand for the currency. One can also look at how Colombian authorities issued repeated warnings of the risks involved with cryptocurrencies, causing the demand for Bitcoin to immensely surge. Similar incidents were reported from Brazil.
Yet, South America is not the only continent where increased activity in Bitcoin was noticed in the face of adversity. Russia and China share the stage with the aforementioned countries by having their central banks take actions to stop local exchange trading, only for Bitcoin to rise and shine in terms of usage.
Reports suggest that even though Bitcoin usage is a problem for such countries, it’s a potential new industry for their citizens.
In terms of Bitcoin trading in dollar terms, Nigeria, Colombia, Venezuela, and Peru share the top 5 spot with China on the list of markets that recorded most growth this year.
China Tops the List
Bitcoin trading in China was recorded at more than 2,000 percent in dollar terms. Nigeria came a close second with around 1,500 percent, while Colombia was third with around 1,200 percent. Venezuela was fourth on the list with recorded growth of around 700 percent, and Peru was last of top 5 with around 600 percent.
Head of Research at Blockchain Capital LLC, Spencer Bogart, had the following to say on the matter:
“The strong interest from emerging-market countries could be reflective of relatively less stable local currencies or a byproduct of greater exposure to financial and economic crises that makes an alternative system like bitcoin relatively appealing.”
Search History Data Reveals Insight
Bogart also pointed towards data from Google Trends, which suggests that users from emerging markets have their interested piqued for the cryptocurrency. The data showed a list of countries, where the most search interest was held by the term “bitcoin”. He further explained how 5 out of the noticed 6 countries are developing nations.
Nigeria’s name also appeared on this list as one of the top countries. Venezuela was also repeatedly mentioned in this list.
It is important to note that the while these emerging markets have shown spectacular growth in terms of Bitcoin trading, the distinction goes to larger nations for actual trading volume as per reports. For instance, while the global trading for Bitcoin stood at $1.9 billion last year, Nigeria only recorded around $115 million in trading, while Venezuela had recorded $50 million.
Take advantage of futures
This week, with the launch of Bitcoin futures on CBOE Global Markets Inc.’s exchange, Bitcoin made its debut on Wall Street.
Now, as the 1,700 percent surge this year in the world’s most popular cryptocurrency has captivated the masses, it’s only a matter of time before similar futures start trading all over the world (futures already started trading at CME Group Inc.’s exchange on December 17).
This goes on to show that if Bitcoin is given the chance to establish itself as a valid asset and currency, it could do wonders for such nations by opening doors to new opportunities.
Both parties should collaborate
It’s understandable how cryptocurrencies could be causing issues for the reported territories. Their holders could dodge currency controls by not relying on central banks or financial institutions because these currencies have the ability to be traded on online exchanges and transferred globally.
However, it needs to be clarified that Bitcoin’s creators themselves have also set a limit to the amount of currency that could be created in order to avoid the inflation that takes place when central banks print money.
The demand is certainly there; now we’re focused on trying to keep both the authorities and the bitcoin community happy. It is easier said than done, but only while trying, can one achieve anything at all.