The price of bitcoin (BTC) has increased more than 2,500% so far this year 2020 in Venezuela. This is one more example of the depreciation of the local currency, the bolivar, compared to the rest of the assets circulating in the country.
This year, the value of the cryptocurrency in the South American country started just above 396 million bolivars. Since then, the price has been constantly increasing in local currency, regardless of price swings de bitcoin in the global market, as shown by data from Yadio.io.
In the same period, the value of bitcoin has risen against the dollar only 135%. This, counting the most recent rise that has BTC hovering around $ 16,700, according to data from CoinMarketCap at the time this note is written.
The price fell slightly during the markets debacle in March, when BTC went below $ 4,000. Otherwise, the graph shows a sustained increase. One more example of the loss of value of the bolivar.
This is what the increase of bitcoin in Venezuela looks like this 2020. Source: Yadio.io
The same source also tracks the behavior of the bolivar against the dollar. With that data, we can clearly see why the price of bitcoin has had such a significant increase this 2020 in Venezuela.
The increase in bitcoin has been such, with a combination between the cryptocurrency’s own appreciation and the increase of the dollar of almost 1,000% this year in the South American country: from about 55,000 bolivars to more than 650,000.
Devaluation and bitcoin in Venezuela
The case of Venezuela and the depreciation of its currency is already paradigmatic in the region. With a steady rise in the dollar, so does bitcoin. Therefore, the historical maximum of both price and trade volumes is constantly breaking. Even if that doesn’t mean there is more BTC moving.
In bearish scenarios of bitcoin in the global market, cryptocurrency does not fall at the same rate in Venezuela. We saw it this year with the fall of March, but it has been a constant in recent times.
The devaluation of the bolivar is such that even this Monday we reported in CriptoNoticias how it caused an error in the tabulators of the p2p market of the Binance exchange, which has been gaining popularity in the country.
The current bitcoin price in Venezuela exceeds the limits of the exchange site price tab, so that the sale offers have a percentage below the real market price. Meanwhile, no offers are found to buy bitcoin with bolivars: no merchant is offering to sell their bitcoins below the price.
Venezuela constantly breaks the all-time high (ATH) for the price of bitcoin. However, other countries in the region have outperformed it recently as well, before bitcoin’s ATH against the dollar comes close in this bull run.
Argentina, Brazil, and more recently Colombia have already seen new bitcoin ATHs in their respective local currencies, which have also depreciated in recent years.