Crude oil prices are seeing the worst meltdown in its prices and the oil-exporting countries are facing the wrath of this huge slump. Countries like Venezuela, Lebanon, Columbia, and Argentina that experience hyper-inflationary trends also are experiencing a huge increase in Bitcoin Prices (BTC).
Venezuela which thrived and survived on the revenue generated on the export of Oil to nations is barely surviving as it has lost due to the lapse in oil prices yet experiencing hyperinflation on its soil. Other oil-exporting nations experiencing hyperinflation too after the price crash. The other thing common between these two countries is the fact that commodity prices including Bitcoin are experiencing a huge pricking up despite the volumes traded in Bitcoin experiencing a consistent pattern.
Looking at the chart, it is clear that in Venezuela the volumes are experiencing a swift upward trend with the same trend replicating in other nations like Argentina, Egypt, and Columbia in the case of Bitcoin and Bolivar. Venezuela primarily employs Bitcoin for safekeeping and as a store of value. But it also is an exchange asset for obtaining USD.
These countries are facing hyperinflation with more money rotating in the economy and present a strong point for argument in the case of Bitcoin. Considering the continuous rise in price to battle economic depression, the USA also is using a similar approach which might devalue its USD. But countries like the USA and other developed nations are standing strong as they are not just technologically sound but also politically influential.
Take the case of China which is working on strengthening its digital currency platform. It is continuously working towards making the Renminbi a more globally accepted digital currency. But talking about the robustness of different currencies, USD still holds the crown.
Bitcoin is not ready to assume the title of a global currency as it still needs to work on its scalability issues along with being cost-effective. But, the current economic situation and the great depression cannot be tackled by a mere switch to a digital currency. It is more serious than that.
But there is no denying that Bitcoin will convert everything into the value which will be essential for the future of the nations.