Bitcoin has long been referred to as a hedge against the traditional financial system and the so-called "safe haven asset." However, many cryptocurrency opponents often claim that bitcoin is far from functioning the way cryptocurrency supporters would like. In their opinion, bitcoin is still used only to a minimal extent. So, is bitcoin working as an effective hedge or the so-called “safe haven asset”, or it is only a dream of cryptocurrency enthusiasts?

Data from the well-known cryptocurrency site and cryptocurrency exchange, the LocalBitcoins, clearly show that bitcoin trading is on the rise, especially in countries experiencing different problems, such as economic, political or geopolitical problems. This is indicated by the fact that trading in 2019 increased compared to 2018 in countries such as Hong Kong, Venezuela, Argentina or Egypt. Each of these countries has quite different problems, but one thing they have in common. The citizens of these states must protect themselves against uncertainty. People in these areas use bitcoin to protect their property from protests (Hong Kong), extreme hyperinflation (Venezuela) or other economic problems (Argentina, Egypt). South America is particularly problematic. An extremely high volume of bitcoin trading was recorded not only in Venezuela and Argentina but also in countries such as Colombia, Peru, and Chile. However, if we compare bitcoin trading on LocalBitcoins in 2018 and 2019, the largest percentage increase in transaction volume occurred in Egypt.