LocalBitcoins, a peer-to-peer bitcoin marketplace recently announced its biggest markets in 2020. Venezuela and Colombia have accounted for more than 23% of the total bitcoin trading volume on the platform this year.
According to the report, Russia remained the biggest market for peer-to-peer bitcoin trading on its platform with a share of 17.4%. The South American country Venezuela accounted for 12.3% of the total share, followed by another Latin American nation Colombia with 11.3%.
South America is the worst-hit region as far as inflation is concerned. In 2019, Venezuela topped the list of the highest global inflation rates with more than 19,000% inflation last year, according to the data compiled by Statista. Additionally, Colombia and Argentina joined the list with significantly high numbers.
A substantial devaluation of local currencies and a deep economic crisis caused by the coronavirus pandemic helped bitcoin adoption in the Latin American region. The recent data from LocalBitcoins shows that the world’s largest cryptocurrency is gaining traction in the region.
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Moreover, the bitcoin marketplace mentioned the growing interest of BTC in the UK and Nigeria. “Other markets such as the United Kingdom (6.3%) and Nigeria (5%) also have a place in the global top 5. Argentina, Chile, and Brazil, whose economies are facing uncertainty because of the coronavirus pandemic, have also been relevant in terms of the volume of Bitcoin exchange through LocalBitcoins,” the company mentioned in the official blog written by a guest writer, Satoshi en Venezuela.
The South American region has reported a substantial increase in Bitcoin ATMs recently. According to the data provided by Coin ATM Radar, the region has more than 100 Bitcoin ATMs including more than 50 ATMs in Colombia. The latest numbers from LocalBitcoins shows that the Latin American region is leading the way in crypto adoption. Despite the lack of a crypto regulatory framework, retail bitcoin trading is gaining momentum in the region.
LocalBitcoins removed BTC-for-Cash trading option in 2019.