Topic: Bitcoin trading increasing in Venezuela - page 2. (Read 406 times)

It is hard to fall more when you are already at the bottom...
Venezuela's economy is one of the worst in several aspects.

Halted production? What production? Most production stopped in the past years of price fixation policies, and nationalization of industries left to rust abandoned. The goods that returned in today's Venezuela, are imported and overpriced (before the virus), yes including Toilet Paper

Venezuela's fiat coin is formerly called bolivar, like the historical figure (notice small cap to distinguish from the actual family name). This coin has been "remade" (to slash zeroes) 2 times, once in 2008 to slash three zeroes, and another in 2018 to slash 5 zeroes, so the current "bolivar" has a suffix to denote its current (3rd) version: Soberano (VES), previous version was Fuerte (VEF) and the original without suffix (VEB).

Current wages in Venezuela are too little (about $5 for a monthly wage, $10 if you land a "very good" job) to save anyway, and if you kept bolivars you would not be able to buy tomorrow what you can buy today. So those that survive, are either earning in foreign currency (or crypto) or get foreign currency (or crypto) sent from abroad by family or acquaintances.

This is why i mentioned "whales" in my previous post.

In my opinion, it really isn't happening, not by people living normally here anyway, at least not common people, but a few rich whales.

From what I have heard fir to non functioning of the banks and due to the people not being able to go outside , the bad government and jobs being shut down . Now people are left alone to fend for themselves .

*They are using bitcoins as a means of transactions at the same time they are working using bitcoins from home because the government isn't paying the people who are sitting at home.

I do think it is not just in Venezuela but in most of the countries dealing with Corona virus .

Its true that we are quarantined but i doubt "trading is increasing" as we rarely use banks for anything anymore anyway....

On the other hand, since you shouldn't go out you can't use much money in the first place.

But traders are making money and most volume belongs to those whales, many which don't even live in the country anymore.


Banks in Venezuela have been reduced to mostly electronic payment processors. You can't do the things you often associate with banks anymore, not for the past few years. No credit (rates are fixed, under hyperinflation which is nonsense, oh and they were forced to go full reserve, which is great if the rest of the Austrian measures (especially economic freedom) were put in place.

In any case before corona, banks in Venezuela were largely useless. Cash? Let me tell you, they can give you a single banknote per day. Currently there are only 3 types: 10k, 20k, and 50k. You don't get to pick which one, it depends if you are lucky you might get the 50k.

So how much is 50k? Before the world economic collapse, you needed 75k to purchase 1 USD. Currently, you need about 70k (go figure, a world economic collapse made a hyperinflation fiat turn around). But that's about it. People avoid cash if at all possible. Most payments are done by debit card (if you got an old one that hasn't broken, since new cards have been unavailable for years) or via SMS or app payment, or wiretransfer (which can take 1~2 days between different banks).

See? bitcoin transfers faster. A mere 1 day wait is luxury

Since the "legalization" (to own and use foreign currencies) in 2019, most cash you see around lately are USD banknotes, the smallest ones Americans often ignore (ie: 1, 2, 5). It is said many of the small banknotes from Florida are sent here so there is often scarcity of them back in FL...

Currently there are 42 cases confirmed, more expected to come. Both Cuba and China have sent people and supplies and medicines. Borders are closed, commercial travel (air, land, sea) is closed. There are blockades in many places to stop people from moving, and those that go out to buy food or medicine, have to use a mask (yeah i know it should be for the sick only, go tell them). People are not allowed to use gas stations either, only health/gov vehicles.

It's only in China. In my local, it was above $6.5k per BTC when BTC was near $5000, although I didn't like the premium price because I wanted to purchase a little when the price was below $5000.
It's really good to see lately some activity is happening around.

If it is happening due to Coronavirus, then the same should have been happening in other countries as well. Like France, Italy and Spain etc. But is that happening?

The main reason of this increse is possibly explained as below,

1. Venezuelan dollar is facing hyper inflation that its purchasing power has decreased to the lowest level possible.
2. Due to the recent lockdown, their left over production industries halted production activities which further weakens the economy and its currency.
3. Venezuelan citizens are possibly looking for a highly liquid asset to safe guard their money

It is a joint impact of Coronavirus and weakened economy of Venezuela.

It is understandable because they closed down their banks to prevent the spread, they are making measures to prevent a total outbreak. Plus they are experiencing hyperinflation in their currency that is why they are dependent on dollars so it is the reason there is a surge in bitcoin trading.

Due to the Coronavirus, lots of countries are lockdown. Venezuela is also on nationwide quarantine. As a result, banks are shutting down, on the other hand, Bitcoin trading activity is increasing in Venezuela.
https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars