According to the latest analysis of the LocalBitcoins (LBC), a peer-to-peer Bitcoin trading platform, Bitcoin utility around the world is hitting new heights.

The author Matt Ahlborg details that exclusive fiat-to-crypto platform, LBC is a costly one as trades on this platform occurs “at an average of 4.5% over the USD equivalent spot price globally.” Despite this, people around the world are accumulating on Bitcoin through this platform.

23 countries hit all time high bitcoin trading volumes in Q4 2018 at the bottom of the bear market. Do not miss the opportunity to accumulate at these prices. The rest of the world isn't. https://t.co/h7IuG93a0t

— Phil Geiger (@phil_geiger) February 11, 2019

The high cost and fiat-to-crypto exclusivity state that “fewer traders are using it for “speculative reasons” compared to other exchanges.

In 2018, LBC traded 440,000 Bitcoins that is equivalent of $3.1 billion USD. Russia has the highest share at $756 million followed by the USA at $373 million. China also traded just above $300 million worth in BTC while both Venezuela and Nigeria invested over $200 million.

USD Equivalent BTC Volume (2018)

Regionally, the developed countries in North America and Western Europe were first to register considerable volume that was triggered by 2013’s bubble but soon South and Central America overtook this space. This Venezuela-fueled trading has been on a “consistent uptrend.”

In order to get the best reflection of the Bitcoin’s impact globally while adjusting the factor of “most populous, richest, and most internet connected countries naturally overshadow the rest,” he came up with a new metric Usage per (Online) Economic-Person, or UP(O)EP.

In late 2013, meaningful UP(O)EP started in developed countries and then migrated to less developed ones. While OFAC, EU, and UN sanctioned countries like North Korea, Somalia, Syria, Yemen, and Iran remained on the sidelines, Venezuela, Nigeria, South Africa, and Ghana went full in that have a minimum threshold of internet and smartphone penetration, and technical literacy.

Venezuela Bitcoin Trading volume, Source: Coindance

The countries with high levels of economic freedom were trading Bitcoin more in 2013 to 2015. However, Bitcoin utility is “higher in countries which are economically oppressed.” However, it’s still a beginning as trends just have started to emerge.

The author shares the concerns regarding the data analysis with the introduction of cheaper and more user-friendly regulated exchanges in recent years in the developed countries that has caused the trade volumes on LBC to migrate away. Also, UP(O)EP values in the US, Japan, and EU are likely “underrepresented.”

“In the 4th quarter of 2018, as Bitcoin price and interest seemed to hit their doldrums, 23 countries on LBC had their best quarters ever.”

Almost all of these 23 countries are in the developing world and for now though these volumes may seem insignificant, compared to three years back, Venezuela’s volume was less than 1 percent of what it is now.

Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 12th)

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