If you’ve been following along with my previous posts here on Altcoinpress, you’ve seen my articles regarding the Greece economic crisis and the role bitcoin has played. On the other side of the world, we have an interestingly similar event unfolding.
Brazil is in the midst of a 9.6 percent inflation rate, and the unemployment rate was at 6.9 percent in July 2015. The country faces a recession that will likely be worse than the one it suffered in the 1930s. People are putting the brakes on spending, although it is unknown how many people are taking money out of the financial system. Due to strict financial regulations, people can’t easily move their money out of the country.
Bitcoin Trading Increase
In the middle of all of this, we are seeing the same thing happen that occurred in Greece. Bitcoin trading is up in Latin America by 120 percent, and the number of monthly bitcoin exchanges in Brazil is estimated at $2.8 million USD. Coincidence?
Believe it or not, some people are indeed chalking it up to a coincidence. Many feel that bitcoin isn’t popular enough in Brazil to be gaining a foothold. Bitcoin in Brazil has had a rocky start, but people are slowly coming to the idea. It’s true that a lot of people, including business owners, aren’t aware of bitcoin yet.
Despite this, more and more merchants in Brazil are going with bitcoin. Why?
It’s quite simple, really. Bitcoin offers some interesting benefits for merchants, including low transaction fees and better international rates.
With Bitcoin, people and businesses alike can move their assets around more fluidly than the Brazilian currency system will allow. Are we seeing yet another case-in-point of how bitcoin is a viable option when centralized financial systems fail?
Again, we’ll have to wait and see. If Greece has been any indicator, then bitcoin might be gaining a foothold in trouble Brazil.