Barry Silbert, the co-founder and CEO of Digital Currency Group (DCG), stated that trading volumes of global bitcoin exchanges are growing at a rapid rate. Exchanges in regions such as the Middle East and Mexico have demonstrated record breaking volumes amid bitcoin’s recent price rally.
As arguably the most active investor in the bitcoin industry, Silbert collaborates with leading bitcoin exchanges including Japan’s Bitflyer, Mexico’s Bitso and South Korea’s Korbit. Silbert and the rest of the DCG members direct and lead companies globally, to expand their services and operations.
DCG invests in a wide range of bitcoin and blockchain startups, ranging from bitcoin exchanges to blockchain solutions providers. In early 2016, DCG closed multiple deals with multi-million dollar blockchain startups, to provide necessary infrastructure to the financial market and banking industry that are seeking to implement and commercialize the blockchain.
Yet, despite the hype around blockchain that existed throughout 2016, bitcoin exchanges have seen the largest commercial success.
Several bitcoin exchanges under the portfolio of DCG including Bitso and BitOasis have reported record-breaking volumes. Bitso, for instance, saw more trading activity in one month during December than in 2014 and 2015 combined, amid the end of the year price rally.
In an interview, Bitso president and cofounder Daniel Vogel stated that the rising demand is directly attributable to the lack of financial infrastructure for the general population in Mexico. The limited amount of banking services and financial systems led to the search for alternative solutions, such as bitcoin.
Middle East’s BitOasis also reached record breaking volumes, as the demand for bitcoin rose rapidly over the past few months amid global economic instability and financial troubles.
“December has been our best month yet since launch. We broke new daily volume records,” said Ola Doudin, co-founder and CEO of BitOasis.
Silbert reassured investors and traders that it is only the beginning. As an investor of 19 bitcoin exchanges, Silbert has access to the trading volumes and private data of exchanges globally. Observing the rapidly increasing volumes of exchanges, Silbert said:
“Best part of having invested in 19 bitcoin exchanges around the world is we get to see their monthly volumes. Folks, it is happening.”
Also, countries like India, Venezuela and China have tightened currency controls and imposed various financial regulations, which have led to the devaluation of their national currencies. India, for instance, is currently dealing with a severe cash shortage issue, which has proven to be a disastrous situation for average workers, businesses and households.
If this global economic slump and financial instability continue, the demand for bitcoin will continue to rise. Inevitably, many bank consumers and traditional financial services users will migrate to bitcoin to avoid excessive control from banks and governments.
Image from Shutterstock and Twitter.