Latin America is a crucial region for cryptocurrencies. Numerous countries struggle financially at this time. This makes them prone to financial disruption, especially f no government intervention is involved. Even so, Bitcoin will have a tough time hitting its stride. Adoption and use of crypto assets in Latin America remain relatively low.
The Battle for Latin America
Financial turmoil is not difficult to find in Latin America. Most countries below the US border seem to struggle financially. Extreme examples include Venezuela and Argentina, where hyperinflation has become a massive problem. Similar problems are brewing in neighboring countries. It is not entirely surprising all of these developments slowly push consumers and companies toward exploring different options. Cryptocurrencies are a good fit, for many different reasons.
One recent crypto-related success story is getting a lot of attention. The current situation in Venezuela is growing rather dire. Demand for Bitcoin has picked up in recent months, despite the country issuing its own cryptocurrency. Bitcoin is capable of helping people turn their lives around for the better. Tearing oneself away from government influence is not straightforward in these countries. Flocking to government-free cryptocurrencies can be an important first step toward achieving that goal.
Latin America may turn out to be a breeding ground for Bitcoin activity. It is no longer a matter of holding Bitcoin as a wealthy individual. In some countries, it is simply a matter of survival first and foremost. That paints a very bleak, albeit promising image. If Bitcoin can succeed in these countries, global adoption of cryptocurrency suddenly becomes a lot more plausible.
Governments Won’t Back Down
Although there is tremendous potential for Bitcoin in Latin America, an uphill battle awaits. Venezuela has its own cryptocurrency, known as the Petro. It has been subject to a lot scrutiny and controversy over the past few months. Unlike Bitcoin, the use of the Petro in its native country remains unclear. The dismay for this currency can boost overall interest in Bitcoin moving forward.
It would appear domestic currencies are slowly on their way out in Latin America. Fluctuating exchange rates for local fiat currencies create an unstable system. Exchange rates for foreign currency can differ greatly from street corner to street corner. That in itself is not helping any of these countries to overcome their current financial struggle.
Bitcoin is on the radar of Latin American governments. Especially miners are often targeted by government intervention. This has caused some friction when it comes to mining cryptocurrencies directly. Contrary to what one may expect, this has not decreased demand for Bitcoin. Coin Dance charts confirm BTC trading on LocalBitcoins is still firing on all cylinders right now.
Do you think that Bitcoin adoption in Latin America is a foregone conclusion? Let us know in the comments below.
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