Topic: [2017-09-25] First Bitcoinization of a Sovereign State is Happening Now (Read 4223 times)

So it begins...

What total bollocks.

It's just the same as Cyprus and Greece. Maybe a couple of people persuaded their friends to put a fraction in. Everyone else prefers dollars. In the meantime Bitcoin fans jump up and down and shriek about it taking over the world.

The easiest metric is Localbitcoins volume. In Venezuela its weekly volume is about 400-500 BTC. That doesn't seem like quite enough to service the needs of tens of millions of people.

Now if only we could get someone from one of the news agency to send a proper investigative team down there for a full story! Bitcoinization or not, we probably need a few more countries to descend the depths of Venezuela's economy (while having the infrastructure to support Bitcoin) before we can have a few case studies. There's a host of countries in East Africa experiencing some of the same issues (hyperinflation and alternative currency market) but these just don't have entry points for crypto (thinking of South Sudan and their spiralling pound, and Somaliland where people already don't use fiat).

Sensationalism aside, this really is going to be something for economists to look at.

Ok, this is huge!

Following...

It's not going to remain sovereign for long, or at least not from the top-down

Pardon the pun, but "Bitcoinization" sounds like a new phrase for the cryptocurrency has been coined!

This makes me happy/proud for reasons no one on here will ever realize

In recent months, news about Bitcoin being widely purchased and mined in Venezuela has led to a number of rumors regarding the growth and demand of the cryptocurrency there. An interview with Daniel Osorio of Andean Capital Advisors on CNBC indicates that the country may soon ‘Bitcoinize’ completely.

Osorio, who spends about a week per month in the South American country, was interviewed regarding the hyperinflation problems that Venezuelans are facing. During the interview, he explained that a simple lunch costs upward of 200,000 Bolivars, or about $8-$10.
Bitcoin only

In order to pay for lunch, locals are beginning to accept only Bitcoin or money wires of foreign currencies. The problem, according to Osorio, is that unlike Zimbabwe and other nations where hyperinflation has taken its toll, Venezuela does not have access to enough dollars to manage the economy.

Locals have, therefore, turned completely to Bitcoin in order to function economically. Since Bitcoin is independent of the black market for Bolivars, it represents a fixed exchange platform for business. Near the end of the segment, Osorio says:

    “We may well be witnessing the first ‘Bitcoinization’ of a sovereign state.”

Cryptocurrency lovers would argue that this is just the first of many, as liquidity and access increase exponentially.


https://cointelegraph.com/news/first-bitcoinization-of-a-sovereign-state-is-happening-now