Brazil’s economy ranks ninth in the world, but that has not prevented it to take one of the first places on the level of inflation. Over the past four years inflation in this country has reached unprecedented heights, breaking all historical records. According to experts, inflation has become one of the key reasons that Brazil has significantly increased the volume of trading cryptocurrency namber UAN – bitcoin.
State Institute of statistics gives a figure of 4.58% is the inflation rate for the country over the past 12 months. Just a few days before published information about accelerating inflation have been published and the data on the growth of the trading volume in bitcoin. So, a company that examines the data on volatility and other indicators of trading on the stock market, posted a message on Twitter. It Cointrader Monitor wrote that on the Brazilian stock exchanges trading volume on April 10 reached the sum of 100 000 BTC.
At the same time, the company Coinlib reports a figure of $315 million, which were traded on Saturday. Exactly the same amount was sold to Brazilian reais, for which users bought bitcoins.
This problem has opened in Argentina, a neighboring Latin American country. There is also substantial increase in the price of goods and services. Moreover, the situation in Argentina may be even more grim. Central Bank of this country has recently taken measures to tighten monetary policy – the Bank has divided them into three stages, which, however, did not change the fact. The inflation rate, despite the actions taken by the Bank, is still growing. Only last month rising inflation was 55%. In this regard no one was surprised that the volume of trading on bitcoin going through the roof for any historical highs.
The same trend is observed in Mexico, where the trading volume on the bitcoin crypto currency exchange LocalBitcoins, specializing in the markets of third world countries, has grown substantially. Explosive growth is also associated with careless remarks of the American President trump. He said that the remittances of migrants residing in the US illegally should be banned.
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