The global interest in cryptocurrencies has never been higher than it is today. Even so, there is still a long way for Bitcoin and its counterparts to go until they can enter the financial mainstream. In Brazil, it seems like so many people are opening cryptocurrency trading accounts that even traditional securities are being forced to take a backseat.
A Strange Situation in Brazil
Similar to most countries in Latin America, Brazil is currently going through its own share of financial struggles. Inflation is a big concern, although the situation isn’t as dire as Venezuela or some other countries. That does not mean that the country’s financial system is in a good place right now.
If left up to the Brazilian masses, a new economic upward trend would be introduced through the introduction of large-scale cryptocurrency trading. Not entirely surprising, considering the whole world is warming up to Bitcoin and altcoins as of late. What is rather shocking is how the number of traditional brokerage accounts is lower compared to cryptocurrency trading accounts. An interesting development and one worth keeping an eye on.
This trend has been materializing for quite some time now as the growing use of global cryptocurrency when combined with the desire to embrace new technological frontiers makes Bitcoin an excellent solution. Local exchanges have seen a major increase in the number of registered users and daily trading volume.
It is expected that close to 1.4 million Brazilians have a cryptocurrency trading account at this time.
Also worth looking at is the question “Why exactly do people flock to Bitcoin?”. It seems evident that the “store of value” aspect doesn’t always hold true when there is a volatile currency in question— the Brazilian Real in this case. Even so, alt currencies allow for non-traditional investment options which can possibly generate a very high return over the course of several years. However, with everything said and done, blockchain solutions are definitely disrupting and taking hold of the Brazilian financial market.
When more people invest in Bitcoin, things will undoubtedly get very exciting moving forward. This doesn’t necessarily mean that the price of Bitcoin will undergo any major changes in the weeks and months to come. Local entrepreneurs are building their cryptocurrency empire as of right now. However, this is still a niche market where quick gains are usually followed by even quicker losses.