Bitcoin Premium Develops in Chile, Adoption Spreads in Colombia Amid Global Protests – Trustnodes

Bitcoin Premium Develops in Chile, Adoption Spreads in Colombia Amid Global Protests


Bogota protests, Nov 2019

One bitcoin is currently a bit more expensive in Chile than globally according to local media.

They say the dollar rate in ordinary markets is 800 Chilean Pesos (CLP) to the dollar. Their analysis of the dollar rate in bitcoin crypto exchanges and markets, however, concludes one dollar is worth 830 CLP.

Indirectly this might suggest CLP’s rate has generally fallen, but it might also be specific to bitcoin perhaps because of increased demand as protests rage in Chile.

Chile’s economy is a bit bigger than Portugal’s at a GDP of around $300 billion with their economy contracting in the first half of the year when accounting for inflation.

Chile has however seen some growth in real terms in some quarters, with the government not really having much debt, but this chart might explain why they are on the streets:

That huge jump in 2017 coincides with a contraction of -0.4% in one quarter before accounting for inflation, with inflation it was minus circa 2%.

It does then rebound, but in real terms the economy is sort of yoyo-ing between contracting and growing, although in some quarters it does grow in real terms at 2%.

Corporate tax has also been increased from about 18% to 27%, while the top rate of tax has been lowered from 40% to 35%.

So they’ve lowered taxes for the rich and have increased them for the poor, quite a blunder in the current global situation where people are charging the elected with rigging the system in favor of the rich.

So they’re on the streets and now they’re on the streets in Colombia where the situation is far worse both in how it is being responded and economically.

In regards to the former, they’ve sent in the army to maintain order. That’s while the protests have largely been peaceful, but the “elected” there presumably don’t want to take any chances.

Many are taking their chances with bitcoin where some $2 million worth of bitcoin volumes exchange hands weekly just on the peer to peer platform, Localbitcoins.

Colombia is next to Venezuela, so some of this volume might be related to the very dire situation in their neighboring country, but the economy of Colombia is not doing great in real terms as it is contracting by 1% to 0.5% every quarter when we account for inflation.

Here they’ve put up taxes on bread, or sales taxes as it is more technically known, by around 3%.

These protests however are not as much local as global with the political system itself being questioned amid demands for greater representation made first by the French as 2019 opened.


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