Bitcoin Usage is 'Really High At the Moment', eToro's Senior Analyst Reveals

Mati Greenspan, the senior market analyst at eToro, a leading social trading platform, has revealed that Google searches for bitcoin (BTC), have increased due to the current rally which appears to have run out of steam.

Greenspan pointed out that cryptocurrency trading volumes have started to pick up, however both trading activity and online searches about cryptocurrencies are “nowhere near” what they were when digital asset prices recorded record-level highs in late 2017.

Greenspan, a licensed portfolio manager, noted that “volumes across” digital asset exchanges (during the last 3 months) are “at their highest levels” since April 2018. Bitcoin usage is “also really high at the moment”, the former financial investments advisor at Ava FX mentioned. In fact, bitcoin usage is “near the highest it’s ever been at 3.87 transactions per second (TPS)”, Greenspan wrote.

Moreover, the experienced market analyst said that BTC usage rates had been “rising steadily throughout the bear market” as bitcoin adoption continued to increase even when crypto prices were down considerably from their record level highs.

"Emerging Markets" Experienced Greatest Increase In Bitcoin Usage

As many other researchers have observed, Greenspan tweeted:

Bitcoin usage is especially high in emerging markets where the local economy is less stable.

Indeed, countries experiencing hyperinflation such as Venezuela have seen bitcoin trading volumes explode to all-time highs. Venezuelans seem to increasingly be turning to cryptoassets, in order to preserve their wealth as the Bolivar (the nation’s fiat currency) has become practically worthless due to extreme inflation.

Notably, volumes on the popular peer-to-peer (P2P) LocalBitcoins exchange were 157x greater (on February 11th, 2019) than Venezuela’s largest stock exchange. Today (February 21st, 2019), Greenspan pointed out that global trading volumes on LocalBitcoins “have been rising lately” when compared to the “noticeable dip” during the prolonged bear market (which is still not over).

Most Millennials More Confident In Crypto Than Traditional Stocks

On February 19th, eToro published the results of its survey which shows that most millennials appear to be more confident in cryptocurrencies, instead of buying traditional stocks. Interestingly, most or 71% of the young investors responding to the survey said they “would invest in crypto if it was offered by traditional financial institutions.”

Over 90% of millennial crypto traders that participated in eToro’s survey said “they would invest more money in [digital assets] if [they] were offered by traditional financial institutions such as TD Ameritrade, Fidelity, or Charles Schwab.”

Buying Bitcoin At All-Time High Was Better Than Keeping Money In Argentinian Bank, Trader Reveals

Josu San Martin, a Mexico City-based Bitcoin “quasi-maximalist”, recently revealed that if the residents of Argentina, a country experiencing a major financial crisis, had purchased Bitcoin (BTC) at the “highest point of the ‘biggest bubble in history’” (in 2017),  they would have still “been better off” than leaving their funds in an Argentinian bank.

Earlier this month, Twitter user Matias (@MatiasTrader) had noted that Bitcoin had reached “an all-time high in Argentinian Pesos (ARS).” This, as the South American nation is suffering from extremely high levels of inflation.

High Levels Of Inflation Does Not Necessarily Mean Bitcoin Will Help?

Interestingly, Twitter user Moises Cassab (@josusanmartin) pointed out that the main argument being made is that the Argentinian Peso is a “terrible store-of-value (SoV).” Moises also appeared to suggest that there was no meaningful relationship between the declining value of Argentina’s national currency and the arguably better performance of Bitcoin, the world’s most dominant cryptocurrency.

Moises remarked: 

Buying Celine Dion 2020 tickets would of outperformed the arg peso. Tell me how Celine Dion tickets are a terrible store of value.

Venezuelans Still Need To Use The Bolivar “To Survive”

According to Josu San Martin:

In a long enough timeline, the Argentinian peso doesn't look that much different from any other Latin American currency.

Indeed, the residents of other nations in the same region such as Venezuela are enduring one of the worst economic crises in their country’s history. However, recent reports which appeared to have suggested that cryptocurrencies were increasingly being used as a hedge against inflation in Venezuela may not be entirely accurate.

Focusing On Basic Necessities

Alejandro Machado, the co-founder of the Open Money Initiative (OMI), a project dedicated to assisting nations with “collapsing monetary systems,” had revealed recently that the citizens of Venezuela have not completely abandoned the Bolivar.

Although Machado acknowledged that bitcoin trading in Venezuela had reached record-level highs, he said that Bitcoin and other cryptocurrencies were “too technical” for most Venezuelans. He also mentioned:

Access to products [in Venezuela] is the number one thing [that people are looking for.] Do I have enough to eat this week or do I need to reinvent the ways that I access food?