Posted on 08/10/2016 11:50:00 AM PDT by amorphous
The month of July saw a high number of bitcoin transactions in Venezuela with August achieving a new record high as more people turn to the digital currency as the country continues to tackle the inflation of Bolivar.
Venezuela is a country that is blighted by hyperinflation. According to the International Monetary Fund (IMF), Venezuela is projected to remain in a deep recession in 2016. Compared to contraction rate of 5.7 percent in 2015, 2016 saw a rise of 8 percent.
Political uncertainty and the decline in the price of oil are factors affecting macroeconomic imbalances and pressures. The IMF states that inflation in Venezuela is predicted to rise to 500 percent in 2016 and further next year.
It’s no wonder then that many people recognize the benefits that bitcoin presents for the future and to shield them against further inflation.
Record Highs of Bitcoin Use
In the first week of August, bitcoin transactions in Venezuela reached $141.7 million bolivar that was exchanged for bitcoin, amounting to $141 million USD.
According to a report, this record beat the previous week’s, which saw $117.116 million bolivar being exchanged for bitcoin. Comparing this to the U.S. Dollar the figure equates to $117 million.
Venezuela’s local currency, the bolivar, doesn’t seem to be on the road to recovery just yet.
Of course, this is good news for the digital currency, bitcoin. It now means that Venezuelans who can’t exchange their currency for others can invest their money in bitcoin.
The Rise of Bitcoin in Venezuela
Despite the fact that Bloomberg conducted a survey that found Venezuela to be the most miserable economy in the world, bitcoin exchanges are taking a stand to give the people of Venezuela a helping hand.
At the moment there are three bitcoin exchanges in the country: SurBitcoin, which is the biggest, and Yabit and Cryptobuyer, both of which are relatively new.
As can be seen, as bitcoin continues to grow it is helping out those countries that need it the most as governments idly sit by inept to do anything to help out the country and its people remove itself out of its recession.
"ONE ounce of SILVER is worth the equivalent of $2,000 in Venezuela right now"
"My brother-in-law just returned from a 2-week mission trip (church). He said things in Valencia (city in Venezuela) are absolutely horrible, no food, barely any electricity, no rule of law. As bad as you can imagine. One thing he shared that caught my attention was how silver and to a lesser extent, gold, were being used as money. One ounce of silver would be enough to buy 6 months of food (basics) while one ounce of gold would buy a decent house down there. People selling things are valuing silver and gold more than u.s. currency. Pray for Venezuela."
We take over the country AND the oil. They take our Spanish speaking felons.
Interesting.
Neal Stephenson wrote a novel called Snow Crash, where the backdrop of the story is built on the pre-supposition that digital currency, unable to be regulated by government, became the norm. It’s an interesting picture, to say the least. Now it looks like it’s happening for real in Venezuela.
I’m a supporter of bitcoin, although it might not be of much use in ChavezLand when there are frequent power outages.
The ignorant voters of Venezuela chose poorly, and now they are reaping as they have sown.
Its tragic but Venezuela’s economic collapse was completely foreseeable.
It's ALL our fault! We're fracking and pumping, pumping and fracking, and driving the prices down! EEEVIL AMERICA! < /libspeak >
That is BC’s biggest vulnerability, and while I am very glad that it can serve as a lifeline when the local currency has collapsed, users shouldn’t depend on it alone if the rule of law and infrastructure is in near total chaos.
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