Yesterday he bitcoin price reached the new all-time high against the Brazilian real.
In fact, the national currency of Brazil has been suffering a strong devaluation for some time.
For example, taking the US dollar as a benchmark, in 2020 alone it lost more than 28% of its value against the US currency, going from $ 0.2484 in early January to $ 0.1779 today.
Over the course of the year, it fell even lower, reaching $ 0.1695 in mid-May.
Going back in time, it turns out that it is since January 2018 that the Real has more or less constantly lost value against the US dollar, since at that time it was worth $ 0.3166, and therefore it has lost almost 44% since then.
It must be said, however, that in January 2016 it was already at the levels of early 2020.
In mid-December 2017, when the price of bitcoin reached an all-time high against the US dollar, the Brazilian real was worth around $ 0.2991, that is, it has lost almost 39% of its value since then.
So it should come as no surprise that yesterday the price of bitcoin reached an all-time high in Brazilian real (BRL).
In mid-December 2017, 1 BTC was worth just over BRL 69,000, before dropping to 12,500 in January 2019.
Since then, it has started to grow relatively steadily, climbing to R $ 44,000 in July 2019, then R $ 55,000 in May 2020, and more than R $ 66,000 in August.
The BRL 69,000 threshold, however, was only broken yesterday, when it reached its new all-time high of R $ 73,500.
Then the price dropped but remained above R $ 70,000.
Bitcoin at all-time highs as the Real devalues
The Brazilian real is not only one of those currencies that has devalued the most in recent years, but it is also a fiat currency with very high volatility.
Indeed, at times, the price volatility of the Brazilian Real relative to the US dollar, for example, exceeded that of bitcoin, although recent rapid and substantial increases in the price of BTC have caused its volatility to rise to higher values. than that of the Brazilian Real.
It must also be said that the average inflation of the Brazilian real is almost always higher than 2% per year, which is the objective of the US dollar or the euro. For example, in early 2020, it was above 4%, only to drop to 2% due to the coronavirus pandemic and begin to rise again from September.
Therefore, it is completely reasonable that owners of Brazilian reals are willing to buy bitcoins right now.