Unexpected Bitcoin Boom
While regulatory clarity might resemble trying to read a map in the dark, the Philippine market is lighting up with a frenzy of Bitcoin trading. Despite the general unease surrounding cryptocurrency regulations in the country, one peer-to-peer platform is witnessing a delightful surge in trading activity.
Paxful’s Record-Breaking Transfers
The peer-to-peer crypto exchange Paxful has been playing host to a booming Bitcoin (BTC) trading scene. July 2022 saw an astounding 111 million PHP (about $1.9 million) traded, setting the record for the highest trading volume ever on the platform. Those numbers didn’t just appear out of nowhere; they were fueled by a tenacious market keen on capitalizing on Bitcoin volatility.
The Numbers Don’t Lie
To highlight this, the week ending July 9th saw a whopping 92 BTC traded against PHP on Paxful. Remember back in early May when trading volumes were barely hitting 40 BTC? Fast forward a few months, and that number more than doubled. It seems the resilient Filipino traders are quite adept at navigating these turbulent waters, possibly fueled by a desire for financial freedom!
The Wild Ride of Cryptocurrency Value
Bitcoin has been on quite the roller coaster in recent months. With BTC dropping nearly 50% in value since early May, you might expect to see traders throwing in the towel. Instead, the opposite occurred, especially after Bitcoin plunged below $19,000 in late June, leading to even higher trading volumes.
- May 2022: 40 BTC traded weekly
- July 9, 2022: 92 BTC traded weekly
- Peak: 111 million PHP traded
Impact of Inflation and Currency Weakness
As if the roller coaster wasn’t thrilling enough, inflation has added to the adrenaline rush. The Philippine central bank is rumored to hike interest rates amid rising inflation expectations, which have surpassed 7% recently. This dynamic act of balancing the inflation curse has left the PHP weak, while traders seek refuge in the relative stability of BTC.
Adoption on the Rise
The buzz around cryptocurrency in the Philippines has been growing, particularly since the onset of the pandemic. Many local firms, including fintech giant PayMaya, have recognized the trend and launched cryptocurrency features, allowing users to trade and spend crypto seamlessly. It’s a digital era revolution, fueled by convenience and necessity.
Expert Insights
Terry Ridon, a local lawyer and think tank convenor, highlights that the pandemic has catalyzed a shift toward digital payment systems. With crypto becoming more accessible through various apps, it’s no wonder the local populace is jumping on the bandwagon. The more, the merrier, right?
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