LocalBitcoins, the most used portal for the Bitcoin trade in the world, reached a new trading record during the week of September 18, boosted by the notable exodus of capital from China’s markets. The record has been registered thanks to the volume of operations in several countries, such as China, India, Malaysia, New Zealand, Pakistan, Switzerland, Thailand, the United Arab Emirates and Venezuela.
With more than 115 million yuan exchanged by Bitcoin, China contributed greatly to the historic maximum of LocalBitcoins for the week of September 18 to 24. Many believe that this record volume is a direct consequence of the repression of the cryptocurrencies in that country, as this situation has led Chinese traders to use platforms that are beyond the control of the government.
However, Switzerland also recorded a record high for the same period, marking a mark of approximately 140,000 francs and a 37% increase over the previous week’s volume. For its part, LocalBitcoins of Malaysia reached the figure of 5,27 million ringgit traded, 25% more on the 3,6 million ringgit exchanged seven days before; Thailand also did the same with 29.5 million baht distributed on the platform.
Likewise, the United Arab Emirates achieved a spectacular increase in LocalBitcoins, surpassing by 36% a weekly precedent of 1 million dirhams to set a record of 1.59 million dirhams; in New Zealand, there was an increase more than 50%, with NZ $ 1.3 million.
The cases in India and Pakistan also draw attention: the former reached a record high of almost 70 million rupees, signing the second consecutive record of this type; in the case of Pakistan, the mark was 47.5 million rupees.
It should be noted that Bitcoin’s total capitalization and overall P2P trade volume showed signs of divergence during September, which means that much of the increase can be attributed to traders residing outside China, who wish to withdraw capital from exchanges of cryptocurrencies that appear in the Asian giant.
Venezuela is another case that calls attention, because in recent months LocalBitcoins has also set several highs in the South American country, due to the hyperinflation galloping in the country – Bolivar has lost more than 77% of its value in the last decade. In an interview with the CNBC media, Daniel Osorio, of Andina Capital Advisors, described the Venezuelan crisis as the impetus for the first “bitcoinización of a sovereign state”.
Eduardo Gómez is a Venezuelan freelance writer and Information’s Technology Professional. He discovered Bitcoin in 2012 and has been drawn to it ever since. He also works as a Customer Support Agent at the San Francisco-based Bitcoin startup Purse.io