A recent Twitter post shared by a crypto enthusiast has thrown light on the Bitcoin P2P trading volume statistics from last week. The six countries that come out at the top are India with $3.4 million trading volume, Ghana with $1.7 million, closely followed by the Philippines and Argentina with $1 million each and Mexico and Egypt in the 5th and 6th place, respectively.
Bitcoin P2P trading, or peer-to-peer trading, is a method that enables market participants to directly trade and transact with each other without third parties having to officiate the deal. Unlike the regular cryptocurrency exchanges that make a profit by charging a fee to process the trade, the P2P or decentralized exchanges entirely run on software with users in complete control.
Bitcoin P2P trading in India escalates rapidly
Earlier in June, the New York-based P2P marketplace for Bitcoin, Paxful, reported a tremendous increase in Indian trading volumes and new sign-ups as the country warmed to the idea of crypto trading. It also revealed that the weekly volume average had surpassed $1 million in the first half of 2020.
Following a recent reversal on that RBI-imposed ban that prohibited banking institutions from offering any services to cryptocurrency businesses, the Indian crypto market has witnessed a substantial increase in demand.
In fact, when the nation announced the world’s biggest lockdown due to the coronavirus pandemic, Indian cryptocurrency exchanges like WazirX reported a 160 percent rise in account registrations and a 66 percent increase in trading volumes. Wealthy Indian investors also took to Bitcoin P2P trading, as a hedge against imminent financial crisis and a means to diversify their portfolio with hopes of better returns.
Now, the data collected by cryptocurrency analysis firm UsefulTulips suggests that this trend is not likely to slow down as India reports the highest Bitcoin P2P trading volume this week.
Higher the value, higher the demand
In African countries like Ghana, where Bitcoin does not enjoy a legal status but is valued higher than the fiat currency, the demand is exceptionally high among the youth population, especially when it appreciates and gets changed to local currency for higher returns.
Another distinctive category of countries where Bitcoin P2P trading is soaring new heights is Venezuela and Argentina. With currency devaluation and monetary inflation occurring at a very high rate, investors are flocking to Bitcoin as a flight to safety.
In Argentina mainly, the government’s efforts to clamp down on crypto usage as a means to protect their local currency have gone in as an increasing number of Argentinians are turning to crypto to safeguard their funds. Venezuela, on the other hand, is pushing hard for state-backed cryptocurrency Petro adoption. However, as Bitcoin takes center stage with mainstream adoption, the demand is not likely to die down anytime soon.
Lastly, Mexico and Egypt have become two of those countries where the investors are obliged to live under the double pressure of ambiguous political statements and significant legal uncertainty. Nevertheless, it has done little to deter the spirits of Bitcoin P2P trading investors.