In the last two months since the March 12 crypto market rout, demand for cryptocurrencies have seem to be surging in certain regions in Latin America including Colombia, Venezuela, Argentina, Chile, Brazil, and Mexico. These countries have seen significant bitcoin trade volumes. However, the volume has proven to be a challenge to measure due to inflation or hyperinflation.
The devaluation of the regions’ fiat currency is held accountable for the spike in the cryptocurrency’s trade volume. Inflation is worse than it has ever been for Argentina in three decades. Before the coronavirus hit the country, Argentina’s inflation rate hit 53.8% at the end of 2019. Venezuela saw its inflation rate hit 2,910% in February 2020.
Evidently, the Covid-19 pandemic has made things worse in these countries as the economies in Chile, Venezuela, Columbia, Mexico, and all the other regions with high BTC trade volumes have worsened. The troubles have gotten so bad in Venezuela, forcing President Nicolas Maduro to enact a rent and wage freeze across the whole country.