It has been quite apparent over the last few months that Venezuelans are turning to cryptocurrency at an exponential rate as a safe haven for their wealth and investments in their crisis stricken economy.
As the value of the Bolivar collapses, the citizens are turning in droves to BTC and other cryptocurrencies as hedges against the currency collapse and the currency crises. Latest data from https://www.investing.com/ states that it is not just Venezuelan citizens that are turning to cryptocurrencies as fiat currencies collapse.
The Investment portal did a research of the top ten countries accessing cryptocurrency across its platform and sure they did noticed an interesting trend. Citizens of countries that have a fall in currencies in every part of the globe are turning to crypto for investment and wealth protection even amid the chaotic struggles of fiat currencies.
Venezuela - 36%
Colombia - 18%
Argentina - 15%
Belarus - 13%
Ukraine - 11%
Brazil - 11%
Germany - 10%
United Kingdom - 8%
Egypt - 7%
Russia - 6%
These are the five countries with the worst performing currencies of 2017. Each of these countries, their rates were based on their current state of affairs including political turmoil, elections, the price of oil, recessions among other factors.
Does financial collapse mean crypto boom? The huge number of investors turning to cryptocurrencies in these fiscal challenged countries may be the biggest and major factor driving the exponential rise of Bitcoin and other cryptos over the past month. Even as these struggling economies fight to regain the stability of their currencies, the overall prices of digital currencies have been moving higher. The influx of huge amounts of cash from depressed regions coming into cryptos may well be the cause of the boom. While the tension in North Korea and Japanese demand have also been substantial factors.