Bitcoin Volume in Emerging Markets is Stable and Less Speculative

[Shahinaz]

The last couple of days have been extremely bullish for Bitcoin (BTC) believers. With a nearly-30-percent gain in two days, the market feels a bit like it did before The Crypto Winter of 2018 — but naysayers suggest that this recent run-up is only the result of speculation, rather than fundamental growth.

Of course, speculation happens in every market. The fear of missing out (FOMO) can drive a market like Bitcoin up or down rapidly. However, recent analysis indicates that the cryptocurrency market leader’s network is showing strong signs of stability, irrespective of pricing, in developing markets.

https://twitter.com/PassportCapital/status/1113457051324149760/photo/1

Bitcoin: For Speculation or Use
The above chart provides important insight into Bitcoin’s utility.

Within developed markets in the first world, the volume of Bitcoin transactions follows closely with the price. This would be expected for speculative trading. As the price rises, the FOMO drives investors into the market, pumping volume and driving the price higher. When the market cools, investors bail out — decreasing volume and driving prices lower.

However, in undeveloped or developing markets, Bitcoin’s volume has remained steady and continues to increase organically. This indicates that these markets are not responding to price fluctuations but are simply using Bitcoin for its intended purpose — payments.

Bitcoin’s Price Doesn’t Matter
In less developed markets — particularly where the currency is destabilized, like Zimbabwe or Venezuela — Bitcoin represents stability. It is not subject to the whims of dictatorial regimes or rampant devaluation like fiat currencies. Instead, it provides a stable means of payment and value transfer and promises to hold that value.

The growth in these regions provides stability for the Bitcoin network. Price runs often spook investors and can have dramatic impacts — but when Bitcoin is being used as it was designed and is providing utility for those needing payment systems, these price runs cannot ultimately affect the network, in spite of short term changes.

Instead, Satoshi’s original vision for Bitcoin is growing. Regardless of the movement of price, emerging market volume is increasing. This, more than any institution or speculative trade, will provide the support needed to move Bitcoin adoption forward

source: https://beincrypto.com/trust-wallet-adds-tezos-support-and-announces-staking-feature/