Brazil’s Bitcoin Trade Grows Exceeding Gold, Its Banks Test Out Blockchain

By July 19, 2016Bitcoin Business

Over the first six months of 2016, Bitcoin trading volumes in Brazil surpassed that of gold on the Brazilian Securities, Commodities, and Futures Exchange by around 7 percent. While gold has a track record that shouldn’t be underestimated, it also can’t be ignored that Bitcoin exceeding that of gold is seen as an historic moment given the fact that it has only be trading for seven years.

Speaking to CoinTelegraph, author of ‘ Bitcoin – money in the digital age ’ and founder of the blog “Money in the Digital Age” on Brazil’s largest financial news site, InfoMoney , Fernando Ulrich, said that this was a phenomenal moment for the digital currency given its young age. However, while gold was seen as the natural hedging instrument when financial markets become unstable and increasingly risky, more people are now turning their attention to alternative ways of saving money.

He said: “After almost a decade of unconventional monetary policy, investors have started considering the alternatives for endless quantitative easing, negative interest rates, [and] currency devaluations. In this environment, and in comparison to the precious metal, Bitcoin appears more and more as an even stronger contender to serve as a hedge, a safe haven asset.” Calculating the trade volumes at the beginning of 2016 until the end of June, the total value of gold for the beginning six months of the year amounted to around $44 million compared to Bitcoin’s $47 million in the same period.

It’s hard not to see that the digital currency is experiencing a strong growth in Brazil. This is evident when you look at reports from bitValor stating that during the month of June 2016, the total Bitcoin trade volume rose by more than 45 percent compared to the trade volumes in 2015. Additionally, during the first six months of […]

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