Hi @juanmolina,
Thank you for this great article, I think that you see the reality quite clearly. Crypto could really be a way out for Venezuela as long as you keep having access to the internet.
Hyperinflation = death of the economy
What people often to fail to understand is that hyperinflation is not only a mecanisme that devalues money, it also breaks the whole economical system.
Money is a way to transfer value. So in a normal economical situation you might agree to sell food for money because you know that with this money you will be able to buy something else that you need.
In a case of hyperinflation, you don't want to sell your food for money because the money might loose its value while it is in your pocket. So either you have to calculate with this loss and ask much more for the food or you simply keep your food because it keeps the value better than the money.
Without a money that people trust in, the economical transactions tend to stop
What is needed is a money people can trust in
The basis for any economical transaction is to have money that both the seller and the buyer trust in. The person selling food wants to be sure that the recieved money will be accepted somewhere else, for other goods.
Cryptocurrencies are certainly not perfectly stable but they are much more stable than Venezuela's money. So they could act as money for economical transactions and be the base of a new economy.
Support my project @help.venezuela to give upvotes to people in Venezuela
Currently in Venezuela a dollarization process is being developed without the promotion of public administration. It is the citizens themselves who request dollars as payment for goods and services. The value of cryptocurrencies is also estimated with reference to the dollar.
Coins from neighboring countries are also used in border areas. The Colombian peso and the real of Brazil are exchanged in Venezuelan territory.
These currencies generate much more confidence than the bolivar.
You are completely right, when we visited Zimbabwe in 2006 most places accepted US$ or our South African Rand ZAR, it was only the small local shops that had been restricted to using the then Zimbabwe Dollars.
Buying food meant converting to Zim Dollars, at the tills you had one person checking the food out, another sat next to him/her with a special counting machine to make sure the correct amount was paid, a counting machine was needed since it ran into exceptionally high numbers.
Here in our country the merchants chose to weigh the garlic pieces of notes. They do not even count them anymore. They know that 250gr of bills of one hundred are 10 thousand bolivars. Paper money is simple garbage.
Keep strong, it is a world gone crazy!
I appreciate it dear @joanstewart.
Do you have free access to foreign currencies or is it on the blackmarket only that you can get them?
In Venezuela, a control has been established for 20 years. The only official holder of the currency is the state. To obtain foreign currency from the state, you have to comply with bureaucratic processes that take weeks or even months, and when you finally assign them to them, they never give you the requested amount. Then we must resort to the nego market and buy with a high percentage of surcharge.
So there is no way people would trade using usd? Probably acces to usd must be very limited?
Access to USD through official administrative sources is very limited. Only dollars are awarded to companies for the purchase of medicines, medicines, etc ...
Naturally, almost no USD is awarded. Unless you are a personero or have "friendship" with the government.
More and more Venezuelans use the American currency for everyday transactions. But they get them in parallel markets or "black markets." There the price of the dollar fluctuates without control and there is much speculation.
Currently 1USD = 100,000,000, or Bs.
It seems your government is really doing everything possible to take your money away and make your life difficult... I wish that 2019 will be the year when life starts to become better in Venezuela and in all the countries in the world.
Happy New Year !
Happy 2019 dear friend @achim03.
Dear @achim03
Thank you again for such an amazing comment. Your knowledge is always blowing my mind.
It seem that people sell for money but right away are trying to spent those money elsewhere.
yours
Piotr
Hi @crypto.piotr,
You are right and the quicker people spend the money, the faster the inflation will be. It is a vicious cercle...
Best regards,
Achim