Bitcoin trading volumes continue to explode in Venezuela
Inflation continues to spike and so do bitcoin trading volumes.
Venezuela has been hit particularly hard by inflation over the past few years, hitting fever pitch recently.
Even getting to the point where the government started asking for its citizens to stop selling the currency for other currencies and precious metals.
Yikes!
At this point the country's local currency (bolivar) is down about 95% over the past few years alone against other established currencies, IE the US dollar.
This has lead to money leaving the local currency and moving into other currencies, and into bitcoin.
Mass exodus into bitcoin?
Money has continued to flee the country and find its way into different stores of value.
A particularly unexpected one being bitcoin.
Check out the latest bolivar inflows into bitcoin:
(Source: https://www.ccn.com/bitcoin-trading-volumes-in-hyperinflation-struck-venezuela-hits-record-highs/)
As you can see, the inflows just keep climbing.
According to the above chart posted by Coin Dance, nearly 300 million bolivars were traded for bitcoin last week.
It is looking like that record may be broken this week as 292 million bolivars have already been traded for bitcoin.
Fixes continue to fail...
On August 10th the government of Venezuela basically orchestrated a reverse split on the currency, where they destroyed supply and wiped out 5 zeros off the currency.
Just like in the stock market though, reverse splits are rarely a good thing or work like they are intended to.
Since that time alone, the currency has experienced another approximately 100% inflation.
As more and more countries experience a fiat currency crisis, I would not be surprised to see money continue to flow into bitcoin.
Something that cannot be printed into oblivion, unlike fiat currencies controlled by governments.
Stay informed my friends.
Image Source:
https://www.ccn.com/bitcoin-trading-volumes-in-hyperinflation-struck-venezuela-hits-record-highs/
Follow me: @jrcornel
Presentation of trading volumes of probably anything denominated in Bolivars has the same impression of explosion.
You could make the case for mass exodus into anything using this inflation skewed terminology.
Since people unrelated to the Venezuelan government fled the country, whatever real value that still pours into Bitcoin in Venezuela is probably money laundering or attempt rescue by government employees.
While there is perhaps a lot of truth to that. There are still millions of people living there and if those millions of people receive any kind of compensation one could reasonably assume they may immediately park that money in bitcoin in order to preserve whatever purchasing power they can, while they can.
They probably have just enough to get by so they would park it all right, but probably in something more useful than bitcoin. Mind you, bitcoin may be useful tool to bypass any currency restrictions and to move value outside of Venezuela.
If there isn't anything that needs to be spent that same day, parking it in something like bitcoin, even if only for a few weeks, would help preserve that purchasing power.
You got a 100.00% upvote from @luckyvotes courtesy of @stimialiti!
You got a 50.76% upvote from @sleeplesswhale courtesy of @stimialiti!
Thank you so much for using our service! You were protected from massive loss up to 20%
You just received 55.91% upvote from @onlyprofitbot courtesy of @stimialiti!
More portion of profit will be given to delegators, as the SP pool grows!
Comment below or any post with "@opb !delegate [DelegationAmount]" to find out about current APR, estimated daily earnings in SBD/STEEM
You can now also make bids by commenting "@opb !vote post [BidAmount] [SBD|STEEM]" on any post without the hassle of pasting url to memo!
* Please note you do not have to key in [] for the command to work, APR can be affected by STEEM pricesThis comment has received a 72.29 % upvote from @steemdiffuser thanks to: @stimialiti.
Bids above 0.05 SBD may get additional upvotes from our trail members.
Get Upvotes, Join Our Trail, or Delegate Some SP
You got a 49.61% upvote from @whalecreator courtesy of @stimialiti! Delegate your Steem Power to earn 100% payouts.
This comment is supported by $2.32 @tipU upvote funded by @slowgrow :)
@tipU voting service guide | STEEM Monsters Lottery | For investors.
Maybe the government can capitalize on this and do something if they actually care about the people.
Crypto could be a way out.
Yes it could. Especially if they could monetize their oil reserves even more than they already do.
Well they are quite literally starving to death. I would try about anything if I were them. They go to be and wake up to 10x inflation from the time they laid their head down
Yep, it's pretty terrible. This is the entire reason bitcoin is so attractive. It keeps governments from printing into oblivion.
Well, they're trying petro.
Is anyone actually using that?
The govt is forcing banks to adop it.
Is not that everybody is going to use Petro, just banks, big funds and countries to buy their oil. That gives volume and movement to Petro. Then, they use is as they used US dollars before to back their currency, called Bolivar. I guess, and Maduro said, that they will create a new Bolivar if the current currency collapses.
It hurts me to make negative comments about my country, but what is the point of view does not need glasses, the Venezuelans who are here do not lose faith that this nightmare ends and we always look for alternatives like this platform to not die of hunger. Greeting
It will be very interesting to see what happens on this front. I hope that they convert to a crypto economy out of necessity and end up ahead of the curve in the long run.
Wouldn't that be great?!
Can they trade their oil for BTC? 😂💰😂
They did create the petro cryptocurrency that is supposed to be attached to their oil reserves. Though judging by the lack of demand for it thus far, I don't think anyone actually believes that it is backed. Admittedly though I have not done much research on it yet.
https://en.wikipedia.org/wiki/Petro_(cryptocurrency)
From what I hear, it's actually still nearly impossible to get, so it's still sort of a chicken and egg problem. Many of them will likely use it when they can get it.
I know most exchanges are not trading it. In fact I am not sure of any that are, though I haven't looked at many in South or Central America.
Yes, first rhey create a token backed up by oil. Then they ask to buyers to have that coint to trade. Then, they change the US Dollars for Crypto or directly they change Petro or whatevercrypto they have for Bitcoin.
How can they prove or show that it is actually backed by oil?
How can the US prove that they have every dollar backed by gold?
Like
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvoting this reply.
Hola @jrcornel
No nos queda otra cosa que no sea la Cryptomoneda Bitcoin para proteger nuestros ahorros.
Como me duele mi tierra.
Yep. More reliable than their hyper inflating currency
Posted using Partiko Android