As we reported in an earlier article, the Bitcoin trading volume on LocalBitcoins has seen a massive growth in the previous weeks. At that time, it remained a bit unclear as to why this was happening, considering there has not been any general news on Bitcoin that could warrant such an increase. On top of that, all of the popular Bitcoin exchanges had seen no noteworthy increase in Bitcoin trading volume. Luckily for us, one Reddit user took the time to dig a little deeper.
Where is This Trading Volume Coming From?
If you take into account that all major exchanges around the world do not see an increase – nor a decrease – in Bitcoin trading volume, there are not too many answers left to the above question. Either the LocalBitcoins statistics are way off, there are more bots trading or we are missing some vital information from certain currency pairs.
In this case – and thanks to the research by Reddit user Caprica__One – it appears to be the latter. The data provider by BitcoinCharts, which is where most people would look, only represents a certain amount of all available currencies in which LocalBitcoins trades take place, thus giving us only a small piece of the puzzle.
Even though the five major currencies – USD, EUR, AUD, GBP and RUB – are responsible for roughly 80% of the daily trading volume, that leaves 20% partially undocumented. And it is precisely in that 20% that we can notice some emerging local markets, which are not documented by BitcoinCharts.
And those emerging local markets are popping up in places people may not have expected just yet. Mexico, South Africa, Sweden, Thailand and Canada are completing the top 10 of most popular places for LocalBitcoins trades at this time. In particular, the South African market seems to be warming up to Bitcoin, with the biggest growth being noted on that part of the charts.
Other Currencies On The Rise
And there is more good news, as Bitcoin adoption seems to be rising steadily in other parts around the world as well. Especially where Eastern Europe is concerned, where Bitcoin seems to be thriving as of late, thanks to efforts by companies such as Chip Chap and SpectroCoin. Bitcoin trading volume in Romania and Ukraine has slowly been picking up in recent weeks, making these two markets worth keeping an eye on.
South America is another interesting part of the world where both Bitcoin and blockchain technology are being embraced by local communities. As most of these countries are plagued by hyper-inflated fiat currencies, it only makes sense to see people moving funds into a different type of “asset”. It looks like Colombia is following the lead of its neighbouring countries.
The Philippines have always been a country associated with Bitcoin in terms of a money remittance alternative. With so many Filipinos working overseas and struggling to send money back home at a decent rate, an alternative is more than welcome. Plus, the story of Bitcoin is also leading to slow adoption by local merchants, as they start to see the many benefits as well.
Last but not least, we have another famous Bitcoin-related country in the form of Kenya. The Kenyan Shilling is the second largest African national currency in terms of Bitcoin trading volume through Localbitcoins. And with efforts such as BitPesa focusing on kenya, it looks like this will be the place where the bitcoin revolution starts in Africa.
Images courtesy of Reddit Shutterstock