Venezuela is in a state of distrust and emergency, considering the recent blackout which pushed the country and its people towards the brink of frustration. The massive power outage is said to have affected 15 out of 23 states and as a result, caused a decrease in the Bitcoin’s overall transaction volume.
As per the data obtained from Coin Dance, the Bitcoin volume of Venezuela peaked on February 09, 2019; a total volume of 2,487 BTC was noticed on the date. However, the BTC volume as of March 09, 2019 was 1,129 BTC, a 54.60% decrease in volume.
The Venezuelan government, especially Maduro, has been vocal about his opinion on Bitcoin. This move is being considered as a way to suppress people from buying Bitcoins and push them towards its oil-backed cryptocurrency, Petro, by a large part of the crypto-community.
This caused widespread panic in the community, leading to the shutdown of private and public businesses, which led to a total loss of $400 million in the country. Moreover, neighboring countries like Colombia, Peru, Chile have all faced decreasing volume in BTCs, which could be a domino effect.
A decrease in volume was also observed in Peru as the volume of Bitcoin fell from 303 BTC on February 09, 2019, to 179 BTC on March 09, 2019, which was a drop of approximately 40%.
Chile also observed a similar effect as the Bitcoin volume for the same time period decreased from 90 BTC to 62 BTC.
The BTC volume in Colombia decreased from 760 BTC on February 09, 2019, to 668 BTC on March 09, 2019. The same can be seen in the chart below.
The overall volume of Bitcoin reduced from 14,896 BTC to 12,537 BTC from February 09 to March 09, 2019.
The blackout caused some people to look into solutions that don’t require communication through existing connections.
A Twitter user, @Ragnarly, commented:
“This drop in Venezuelan Localbitcoin transactions reminds of the need and value of building redundant communications infrastructure. Some existing solutions include @OPENDIME, @Blockstream satellite, and @SamouraiWallet + @gotenna.”
@Carlos_t815, a Twitter user and an author at Caracas Chronicles, tweeted:
“The volume of transactions in Localbitcoins went from more than one million dollars a day to 183k during Day 1 of the mega Blackout.”
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