Bitcoin has been trading for a premium of between 8 and 28 percent on the Argentina-facing section of LocalBitcoins. The higher prices compared to those advertised by traders on the peer-to-peer marketplace from the rest of the world highlights that demand is high for Bitcoin in the South American nation.
With all the current talk of whether or not Bitcoin is worthy for use as a safe-haven asset, the LocalBitcoins figures highlight that a safe-haven asset is a very subjective concept.
You Might Not Need Bitcoin, Don’t Presume Others Share That Luxury
Figures highlighted by cryptocurrency analyst Mati Greenspan show that demand is high for Bitcoin in Argentina. LocalBitcoins, a longstanding peer-to-peer marketplace, shows the digital asset trading at eight percent more than it did on the digital currency exchange Bitstamp.
Although adverts on the peer-to-peer network almost always carry a premium (what’s the point in trading if you aren’t taking a profit?), to put the eight percent into perspective, the lowest price of a Bitcoin on the UK-facing version of the website is less that 0.5 percent more than the Bitstamp asking price.
Bitcoin trading higher in Argentina than the rest of the market @LocalBitcoins
Lowest offer: 650k Pesos = $10,790 (8% higher than Bitstamp)
Highest offer: 770k Pesos is 28% above Bitstamp.
Bitcoin may be a risky asset for investors but for some, it is clearly a safe haven. pic.twitter.com/idLyTvAkMg
— Mati Greenspan (@MatiGreenspan) August 15, 2019
Despite the fact that they help to sensationalise the premium, we should discount the upper figures in the above Tweet. Traders can post whatever price they like on LocalBitcoins, and even the UK-facing site features some traders trying to sell BTC for a more than a 50 percent premium. The 28 percent means very little.
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