Venezuela is the perfect tesing ground for crypto

The Venezuelan Bolivar has devalued a staggering amount in the past few years to the point where the world of warcraft gold has more real-world value than the currency of an entire nation. Nicolás Maduro the countries democratically elected leader is attempting to shift the democracy towards a dictatorship. on top of this, the Venezuelan economy is extremely reliant on the price of oil, with the falling price of oil and the country importing more goods then it's producing, this in combination with a general disregard for the welfare of the Venezuelan people has created a dire situation for the country.

"A few factors are behind the bolivar's most recent plunge. The government has been forced to pump cash into its system because the money in circulation isn't enough to pay for goods that cost a lot more.

Over the summer, the government was increasing the number of bolivars by 100% a month. But since then, the rate has accelerated: by mid-November, the number of bolivars in circulation had increased by 130% compared to a year ago, according to central bank statistics." - Patrick Gillespie CNN reporter.

while this situation is horrible for all those afflicted, it also creates an interesting catalyst and breading ground for blockchain technology. given that the Bolivar is almost guaranteed to lose value at this point, and that for the majority of cryptocurrencies have a set amount of coins in existence, none can be created out of thin air, a lot of Venezuelans are turning to crypto as a possible solution to their plight. Thanks to the so-called "crisis currency" citizens have been able to make potentially lifesaving purchases in BTC ETH LTC and so on. one of the biggest barriers to entry in the crypto marketplace is the fact that you cannot easily spend your coins on food, housing or bills. I hope to see the new solutions to these problems coming out of Venezuela, and I hope to see mass adoption of crypto across the country. It, in my opinion, is the perfect testing site for a nation based on a coin economy.

Ironically with the popularity of bitcoin in the country has prompted Maduro to propose a state back coin call Petrodollar, which is backed by oil. this seems like a strange proposition considering falling oil prices contributed to the collapse of the economy in the first place.

one thing is for sure, it will be interesting to see how the country handles this situation. and what kind of creative solutions they can come up with to take the issues of spending and purchasing coins.

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