The record of LocalBitcoins in Argentina last week is a truly remarkable achievement.
The previous record for exchanges in Argentine Peso (ARS) had occurred in May, with around 69 million ARS traded.
This week exceeded 96 million, an increase of almost 40% compared to the previous record of a couple of months ago.
Argentina is having a bad financial moment, with the peso devaluing sharply against the dollar.
In fact, the ARS has just reached its lowest value absolute against the US dollar, with a drop of more than 15% since the beginning of the year.
The fact is that it was a commercial record not only in ARS but also in bitcoin. On LocalBitcoins, the total BTC traded last week was 88, a volume that had not been recorded since November 2016, when 1 BTC was worth around $ 700.
Even during the months of the last big speculative bubble, in late 2017, no similar volumes were produced, and this clearly indicates that It was not a coincidence.
After all, the value of the Argentine peso is declining dramatically, and the value of the US dollar in recent months continues to decline compared to other more stable currencies.
LocalBitcoins, record trade not only in Argentina
In fact, there have been sustained trading volumes on LocalBitcoins in other parts of the world as well, with a new all-time record too in Venezuela, although only a little higher than the previous one.
Other notable spikes have occurred in South Africa, Tanzania, Peru, Chile, Nigeria, Kenya and Brazilwhile recently there have also been peaks in Japan, Mexico and Egypt.
The beak is also very curious in Europe , with more than 3.6 million euros traded, the second highest peak since April 2018 after June 2019.
It is likely that the long period of relative stability in the value of bitcoin has convinced some people to consider it less volatile and risky than in the past, leading them to consider it as an alternative to fiat currencies in their possession, possibly even in View of rising inflation.
Furthermore, it is precisely in Argentina where the inflation rates are now very high, although they are not yet at the exorbitant levels of Venezuela.
Obviously, in some cases, bitcoin can help those who hold fiat currency in sharp devaluation, also because it is very easy to exchange, without restrictions of any kind.