The political instability that exists in the country, as well as the complicated bureaucratic procedures used for the opening of new companies have mobilized more than 1.4 million Brazilians to invest their money to obtain balances in the digital currency.
Recently published reports indicate that there are currently more than twice as many Brazilian investors in the Bitcoin markets than in traditional stock markets and combined treasury bonds.
According to the news portal Crypto.bi, more than 1.4 million people have registered in the largest bitcoin exchange services in the country, which are "Bitcoin Market" and "Bitcoin to You".
The behavior seen in these markets seems to show much more incentive on the part of buyers of Bitcoin balances, since many see this mechanism as an access to US dollars. In these times of political uncertainty facing the country due to corruption cases that have been aired, many investment citizens prefer to change their assets to the US currency since it has a very good commercial reputation for any type of negotiation.
This year is very special for Brazilian citizens, since they are going to carry out presidential elections that could represent the end of the cycle of 16 years of administration by the political parties PT and PMDB, since the main candidates originally associated with being organizations they would apparently be linked to large-scale corruption crimes. This is the case of Luis Ignacio Lula Da Silva, leftist candidate who is leading the polls, who still do not know if he can officially run since the Senate has not yet made an official pronouncement.
Undoubtedly the political landscape has made the currency of national circulation lose economic power against the US dollar, which is why investors of the digital currency feel much more motivated to change their real (official currency of Brazil) by the cryptocurrency of greater volume of transactions at present, since its price is mainly associated with the North American currency in the main exchanges of the country.
Among the most striking economic data is that interest rates of the Central Bank of Brazil have reached the lowest levels these days in relation to the last ten years, while, for their part, traditional funds no longer offer attractive returns that Get the attention of investors. All this, combined with the political uncertainty that is currently experienced, has mobilized more than 1.4 million investors to trade with Bitcoin.
Other reasons that have mobilized a large number of people to opt for Bitcoin are the bureaucratic complications and the regulations imposed by the State on the bulk of commercial activities. It is estimated that the average time to open a small business in Brazil takes about 90 days, while obtaining work permits for these companies implies compliance with a large number of regulations, which have resulted in a significant amount of companies have migrated to countries like Paraguay or Uruguay, whose conditions are more favorable.
The requirements to invest in Bitcoin beyond those handled by the exchange platforms with higher volume of operations do not imply the completion of additional procedures, which is why the interested parties can acquire the cryptocurrency without so many complications, and in that way have total control of their assets and protect them from an eventual devaluation driven by the political and economic instability that exists at the moment.
With this announcement, Brazil sets the tone in a growing number of Latin American countries in which their citizens perceive in cryptocurrencies an alternative to protect their assets. The economy linked to digital currencies has become a very profitable market in which a large number of people can participate, regardless of their socio-economic position, which has made
If you observe the general trend closely, you'll realise that crypto adoption has been highest in countries where the GDP growth is under 2-3% for the last 4-5 years. USA, South Korea, Nigeria and now Brazil are the best examples.
I don't think this is good in the long term. Many goverments will try to shutdown all cryptocurrencies alltogether once they notice how it hurts their already instable systems... Not having controll is the worst for them.
Crypto will take over very soon