In the last two months since the March 12 crypto market drubbing, also known as ‘Black Thursday,’ demand for cryptocurrencies seems to be on the rise in multiple regions in Latin America. Numerous reports published this week have noted that countries like Colombia, Venezuela, Argentina, Chile, Brazil, and Mexico have made significant bitcoin trade volumes. However, other reports show that even though the trade volumes are high in these specific countries, they are hard to measure due to inflation or hyperinflation.

Venezuela and Argentina bitcoin trade volumes indicate new all-time highs and the trend can be seen on Paxful, Mycrypto, Local.Bitcoin.com, and other platforms. Because of this giant crypto trade volume in Latin America, it had prompted a number of financial news outlets to report that there is significant demand stemming from these areas. For instance, Nikkei Asian Review staff writer Naoyuki Toyama recently wrote that “bitcoin shines in emerging markets plagued by falling currencies,” and “from Bueno Aires to Beirut, investors embrace cryptocurrency as a safe haven.”

Iranian Rial and the Fall of the US Dollar

During the Covid-19 pandemic things got worse in these countries as the economies in Chile, Venezuela, Columbia, Mexico, and all the other regions with high BTC trade volumes had gone through significant losses. The troubles have gotten so bad in Venezuela, this week President Nicolas Maduro enacted a rent and wage freeze across the whole country. On many occasions, Localbitcoins data has had some discrepancies, particularly when it used to serve Iran. Not too long ago, many individuals and publications said that Iranians were paying $24,000 per BTC.

Conclusion

We cannot certainly tell what this means for Bitcoin market, mainly because it is nearly impossible to measure how much demand comes from any country based on Localbitcoins volumes alone. Especially when there are huge discrepancies and massive inflation ruining these fiat currencies from various Latin American countries. The same could be said for the U.S. dollar someday, and economists have predicted the end of the USD after the petro-dollar collapse. Analysts forecast that BTC could reach 1 million dollars, at some point in time, and it very well could happen in the midst of hyperinflation in the U.S. if it was to occur. A number of economists think that the demise of USD very well could happen especially amid the Federal Reserve creating trillions of dollars out of thin air. It is nearly impossible now to predict how far the crisis can go. So if you think about it logically and envision BTC touching a million USD per coin — Would it be very meaningful if the USD was near worthless?
Maybe yes, maybe not. It all depends on us - the community building a sustainable blockchain-based market that would eventually work even if the
fiat currencies didn't make it through.

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