When bitcoin advocates claim adoption is surging in developing countries, particularly during periods of political unrest or economic turmoil, their go-to source for evidence is often LocalBitcoins.
The peer-to-peer exchange, which matches buyers and sellers of the largest cryptocurrency in nearly 250 countries, publishes weekly volume data for each nation and region where it has users.
In Hong Kong, LocalBitcoins data seemed to show increasing volumes, with media reports since August arguing that the protests were boosting crypto adoption.
Elsewhere, conversations with bitcoin veterans in Iran and Egypt indicated LocalBitcoins volume data appeared to have little correlation to local trading activity.
In Iran, sources say, it's common for traders to mislabel their offers as coming from another country to avoid having the trades canceled by LocalBitcoins.
LocalBitcoins spokeswoman Veruscka Xavier Filgueira told CoinDesk that some trading activity, especially for smaller amounts, can be and probably is miscategorized in regional data.
Traders in Venezuela told CoinDesk they believe some of the LocalBitcoins volume there comes from government officials looking to get richer, complicating bitcoin's image as the great leveler.
Although LocalBitcoins has KYC data for its traders, spokeswoman Filgueira would not say whether government officials in the repressive regimes where usage is highest are, themselves, using the platform.
All things considered, and based on the anecdotal evidence, regional volume data from exchanges doesn't inherently correlate to growing usage or popularity on the ground.
Filgueira said high-volume traders must offer proof of local residence, but that regional data is still far from perfect.
Flaws in LocalBitcoins Data Call Into Question Regional Adoption Claims
gepubliceerd op Oct 22, 2019
by Coindesk | gepubliceerd op Coinage
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