Without a doubt, it’s a terrible experience to be a Venezuelan living in the country right now. Well, the reason is not far-fetched as the economy of the South American country has taken a nosedive. It appears the government is obviously helpless.
The government must have tried all the tricks in the books to upturn the crises, but they aren’t working As expected, ordinary Venezuelans feel the shattering blow of the economic downturn.
The Currency Is In Shambles
As the morass bites harder on the economy, Venezuela’s currency is not spared. On Saturday, the Bolivar Fuerte, crashed to 9.2 million and nearly 60 million for $1 USD and 1 BTC, respectively. Now, there is a plan to denominate the Bolivar Fuerte. In fact, the government wants to eliminate five zeros from the value of the national currency.
Breaking Things Down
This is a horrible economic situation. Eduardo Gomez, the support head at purse.io, gave a worrisome analysis of the situation. On Friday, Bolivar unofficially traded at about 6.7 million VEF per $1. The same day it slumped further to 9.2 million.
With regard to Bitcoin, a single bitcoin (BTC) exchanged for 44 billion Bolivar, and skyrocketed to 59 billion Bolivar within hours.
More Scary Economic Indices
Cryptocurrency website Bitcoinist reported that in August Bolivar became the world’s worst currency. Even with Bitcoin (BTC) trading to $6,449.83 elsewhere, its Bolivar equivalence is now doubling every 18 days.
The price of groceries is also taking a startling dimension as hypothetical coffee costs 2.5 million VEF, according to Bloomberg. Indeed, that is the highest price in its history. With this figure, Bloomberg suggests that the annual inflation rates have hit 100,000%.
Is Bitcoin (BTC) The Way Out?
Consequently, Bitcoin trading in Venezuela is setting a weekly record. Community-driven Bitcoin analysis platform, Coin Dance, stated that about 20 trillion VEF volumes of bitcoins were traded on P2P trading website, Localbitcoins. It noted that these transactions occurred in August. Despite this transaction surge, many Venezuelans are still ignorant of Bitcoin.
Because many Venezuelans don’t know about cryptocurrency, they lack access to free trading of BTC. In his response to Gomez, Randy Brito, a developer at Locha.io, enjoins everyone to support his project.
Brito says that he will launch a bounty program that will spark Bitcoin use in the country. On Saturday, one bitcoin sold for 54 billion VEF. Indeed, this is a hard time for Venezuela.