On The Brink with Castle Island Matt Ahlborg (UsefulTulips.org) – Bitcoin as a Bridge Currency (EP.79)
May 13, 2020
54:12
Peer to peer marketplaces are a wealth of data on genuine demand for Bitcoin – but not in the way you might think. As it turns out, a large fraction of the volume in these markets relates to complex, multi-step trades designed to use Bitcoin as a bridge currency to move fiat-denominated remittances, especially into countries like Venezuela.
Matt Ahlborg, data scientist and creator of UsefulTulips.org, has done great work compiling this data and engaging with these traders to determine what exactly is happening on these opaque marketplaces, and what Bitcoin is being used for. In this episode we cover:
- How Matt went from working in the Navy to pursuing a career in Bitcoin data science
- Why p2p exchange volume is more reliable
- What a massive blackout in Venezuela tells us about foreign exchange flows in Latin America
- How exactly Bitcoin works as a bridge currency on p2p exchanges
- The under-reported role of Chinese exporters in Venezuela on LocalBitcoins
- Matt's investigation into how Argentine capital controls are driving p2p Bitcoin volumes
- Why Bitcoin still dominates in p2p markets rather than stablecoins
- Why p2p volumes are likely significantly larger than the reported numbers