Something very special is happening in the world of peer-to-peer Bitcoin trading.
According to data collected by the analysis site Useful Tulips, developing areas around the world have recently seen an explosion of interest in crypto, particularly in Latin America and Africa.
And as appears from a tweet by independent crypto researcher Kevin Rooke, six countries achieved unprecedentedly high Bitcoin trading volume earlier this week: India ($ 3.4 million), Ghana ($ 1.7 million), Philippines ($ 1 million), Argentina ($ 1 million), Mexico ($ 700,000) ) and Egypt ($ 150,000).
The data shows a continuation of a trend that has developed since the beginning of the year. Africa is emerging as the next major hub of Bitcoin P2P trading and the trading volume in Latin America continues to increase as well.
India’s more recent prominence in the P2P trading world may be due to the government’s new favorable stance on crypto. Beginning of June, Decrypt reported that India experienced substantial growth in Bitcoin tradingand reached $ 2.7 million, very close to the previous all-time high of $ 2.9 million in 2017.
For its part, Mexico is strengthening its position in the crypto ecosystem thanks to the efforts of several fintechs seeking to capitalize on the country’s potential as a destination for international credit transfers, using cryptocurrencies as a way to send and receive value.
Bitcoin trading Argentina is also growing. Trading activity originated in much the same way as Bitcoin’s beginnings in Venezuela. Rising inflation, financial controls and difficulties in gaining access to foreign currency have made Bitcoin particularly attractive among Argentines as a value stock in the face of a crisis that is not expected to improve anytime soon.
Peer-to-peer trading is popular in these regions because it is easier to do business in sanctioned countries where a centralized exchange will find it difficult to provide regular services. In other cases, traders may also simply prefer this more personal way of doing business.
Either way, peer-to-peer Bitcoin trading is increasing. According to Glassnode’s Q2 2020 report, released in collaboration with Formal verification Earlier this week, the two most prominent P2P Bitcoin exchanges in the world – LocalBitcoins and Paxful – showed healthy growth in the past quarter.
LocalBitcoins grew by 12%, while Paxful grew by 28% compared to the previous quarter. It is the biggest growth both exchanges have seen in the past year and a half.
And it is this type of growth that could encourage crypto exchange giants Binance to create their own P2P platforms, and also targeting underdeveloped regions of the world as major growth sectors.
The author’s views and opinions are for informational purposes only and do not constitute financial, investment or other advice.