Just this week, Venezuelans traded 900 million bolivars’ ($12 million USD) worth of Bitcoin (BTC).
This figure is up from the still massive 850 million last week. As most of us are aware, Venezuela is plagued with economic and social turmoil with an alarming inflation rate. In fact, the International Money Fund estimates it will reach 1,370,000% by the end of the year. That’s driving further interest into Bitcoin.
Venezuelans and looking to Bitcoin (BTC) as a way of finding something more stable compared to their own currency
For many citizens, Bitcoin (BTC) is the only currency in their country, as the bolivar becomes nearly worthless.
And unfortunately, under the administration of President Nicolás Maduro, Venezuela’s future looks bleak.
The nation’s oil reserves allegedly backs the Petro (PTR), though the state oil company has debt of $42 billion. Some believe that the Petro (PTR) is merely a scam to tighten government control and allow for money laundering. Additionally, to prevent Venezualans from fleeing the country, Maduro requires payment in Petros (PTR) for passports.
According to Bloomberg, this amounts to “7,200 bolivars, or four times the national monthly wage”.
While the government may not be helping matters, the people of Venezuela have tried to take matters into their own hands with Bitcoin (BTC)
For many, mining provides earnings in an emergency. Roughly 90% of Venezuelans live in poverty. Moreover, the minimum wage is just over $1 per month. Fortunately, electricity is heavily subsidized, and the government ends up paying for blockchain rewards.
Anecdotally, there are reports of online purchases of otherwise scarce items, such as medication, using cryptos. Additionally, many businesses in Venezuela now accept Bitcoin (BTC). The global quality of Bitcoin (BTC) helped citizens in their desperation, but its anonymity also leads to frequent extortion. Clearly, cryptocurrency cannot solve the country’s crisis, but it may help many people in the meantime.
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