Every since the inception of cryptocurrency, the vast majority of the market power has been divided up between the USA, China and the UK. But recently it’s come to light that a power shift in the market is impending.
LocalBitcoins.com was founded back in 2012 to provide Bitcoin users and traders a more efficient way to locate Bitcoins for sale rather than posting in forums. Face-to-face interactions and the exchange of cash for Bitcoin in person was common before 2012 and still goes on today. More formal in person exchanges for Bitcoin would also take place like the stock market exchange of yesteryear. People would stand up one after the other agreeing to pay the next highest price, and the Bitcoin went to the highest bidder.
LocalBitcoins provided a way for people to easily locate sellers to meet up with in person or trade online using their escrow services. The platform quickly grew in popularity and is still wildly popular today as it provides an easy peer-to-peer way to enter the Bitcoin market.
Thanks to a recent study conducted by Longhash, we now know that the power of the market may not stay in the hands of the major players.
The Rise of South America and Europe
As you can see from the graph above, there was a significant power shift in market volume from 2017 to 2018.
The top country specific volume growth rate for 2018 is as follows: US (-73.3%), China (-72.9%), UK (-64.6%), Venezuela (+63.7%), and Nigeria (-34.5%).
Venezuela exhibited the largest growth from 2017 to 2018. The USA, China and the UK dropped dramatically in volume control due to Venezuela’s growth. Though Venezuela had a significant increase and stole a large slice of the pie, there are other countries that experienced even more growth.
Peru’s trade volume increased by 250% across the year, Iran +210%, and Tanzania by over 50%. All three of these countries exhibited greater volume increases than Venezuela but made a lesser impact. Because of this, the crown of 2018 still goes to Venezuela due to its commanding piece of the board.
North Vs. South America
Historically speaking, South America has never been able to hold a candle to North America’s trade volume. But over the past year, North America has significantly declined in trade volume making South America nearing dominance in the market. (See Below)
This sudden rise in trade volume is largely due to many nations interest in the creation of their own national digital asset. This is most prominently apparent in Venezuela due to their economic crisis and the large desire for a new form of currency.
Even though the president proposed currency, ‘the Petro’, seems to have just been an elaborate scam at this point, the people still need a new currency due to inflation. This makes Bitcoin and other major altcoins very desirable and more and more small businesses are incorporating accepting digital currencies.
(IMG Credit: Long Hash)