Topic: Can bitcoin help rebuild Venezuela? - Darb Finance - page 3. (Read 1463 times)

Venezuela, first of all, needs sound management of the state economy. Without this, no Venezuelan cryptocurrency will save. If the economy is not effective and the funds are thoughtlessly used at the discretion of President Maduro, the country will steadily become poorer. Cryptocurrency can save some time against inflation, however, if this situation has dragged on for years, cryptocurrency will not help here.

Yes, most people thinks crypto can change the economic conditions of a country, This is a misconception and Venezuela is one example of this. You need a democratic government also and dictatorship will never make economic conditions better. You can read more about it here https://www.coindesk.com/bitcoin-cant-fix-venezuela-i-should-know and know why the crypto adoption failed to recover the economy.

You're right with what you said but the above user also makes every good point because the problem of Venezuela start with bad governments and if the problem is not fixed or well manage it might somehow affect the success story of cryptocurrencies user, investors and minings which reside there.

At one side you are saying that Bitcoin cannot help  Venezuela and at the same time you are saying that bitcoin is already helping Venezuela. The two statements does not match.
Governments need to develop the system to provide jobs and other facilities to the people and alone bitcoin cannot help to rebuild the country. Its the plan and the execution of it by the government which may make the country stand on its foot.

I was thinking about this and totally forgot this topic, since I was talking about it to my friends who didn't cared about it, I may as well write here. If bitcoin can be used properly like a national currency you are basically leveraging yourself against the world and that would usually involve a lot of risks because you are a whole nation instead of a person and dropping from 20k to 3k would have killed an economy if it was nation wide but considering nations like Venezuela is not doing good at all there is really no point not taking that risk.

If price goes up you are using bitcoin that is higher in value than dollar but if it goes down you are already a screwed up country anyway how worse can it get. That is why I feel like maybe Venezuela could use bitcoin (not petro, not eth, just btc) as their national currency and can get away with it.

The oil boom happened in Dubai and Abu Dhabi long back, during the 1970s. Until then, the economy of the UAE was very much dependent on the export of dates and pearls. The effects from the oil boom was not visible before early 1990s. With Venezuela, the oil boom started only during the late 1990s, when new technology made extraction of extra-heavy crude profitable.

In the case of UAE, the oil price crash came after the economy was fully stabilized. But Venezuela was yet to properly develop its economy, when that happened. So UAE was better prepared, while Venezuela fared poorly. But then, there were other factors that exacerbated their suffering. The first and foremost thing that can be said is corruption.

I've seen photos of Dubai before the oil boom, it was a backwater fishing village. Much of the Arabian peninsula was a backwater. I think the main difference is that the Arabs hired competent (in their case, foreign) experts. The Venezuelans nationalized many things. And it got out of hand that the government would just expropriate businesses and property. No one would want to do business under such environment. The situation in Venezuala we are seeing now was inevitable, high oil production and prices can only delay it for so long.

Bitcoin is not some kind of magic wand that one can wave over a dilapidated country ad miracles happen... no, I think Venezuela needs to get its politics right as well as effectively dealing with social ills like corruption and government bureaucracy.

Bitcoin is a great tool for Venezuela if they want to start rebuilding their country.
The citizens have access to a digital currency that it is a lot of stronger than Bolivar. and apart from that, once they buy it they are not going to lose it in value. The difficult point for them is that Bitcoin is expensive for them and they cannot buy it.

Its a better solution than their current situation but you can't expect bitcoin to just save a country. The price is still being manipulated and while hyperinflation in venezuela is getting out of hand and people need to convert their fiat into something else, its not a long term solution to just get in bitcoin and thats it. Alot of thigs need to change for them ..

Venezuela was a poor country to start with, unlike the Gulf nations such as the United Arab Emirates and Qatar. When Hugo Chavez first came to power in 1999, he put a lot of effort to alleviate poverty using the petrodollars. And it was successful to some extent. During his terms (1999-2013), the poverty rate in Venezuela declined from 49% to 33%. More importantly, free healthcare was made available to all the citizens by partnering with Cuba.

Things changed when Nicolás Maduro became the president in 2013. Corruption, which was suppressed by Chavez suddenly became unmanageable. On top of that, the crude oil prices crashed one month later, and the government bagan facing a funds crunch. The crude oil production also decreased due to ongoing disputed and this resulted in less Forex revenues. With less foreign currency, the regime could no longer maintain a stable exchange rate for the national currency, and this ultimately resulted in inflation spiralling out of control.

Can it save? yes.

But it depends on how it is implemented. Petro is certainly not going to have much of an impact.

But the funny thing is, it is only the failing economies like Venezuela or Iran that are kind of embracing crypto so that it can save them, but leaving out the whole decentralized part out basically resulting in flat unimpressive results.

On the other hand, the countries that are fully getting on board the crypto wagon are basically all developing countries or tech-rich countries from Asia. None of the major developed countries have fully embraced crypto and that's what is the need of the hour. Whether it will happen? who knows.

Think of India for a second. If India bans crypto completely, it would lose out of $12billion worth of money from its economy. It has already lost the $2 billion from the whole Kashmir reorganization campaign. So the total loss could pan out to be around $15 billion.
This is the same country where people live in unlivable areas. 300 million people in poverty. Power cuts, lack of drinking water, floods & natural calamities, hostile terrorists etc etc - can a country like this really afford to not adopt crypto? No. But it might happen anyway because of politics.

So the answer to your long question is basically 'politics' - if implemented right, then yes it will not only save Venezuela but it'd set it up for a prosperous future, but sadly that will not happen under Maduro.

Bitcoin and crypto currency have very huge impact on Venezuela financial situation their most widely used currency is Dash and Moreno and BTC all these are being used for transactions for day to day life and these currencies got very huge demand

They relied on one resource, nationalized everything and basically gave away money. Now all that money is useless. Compare this with the monarchies in Middle East that despite the royals taking in a large portion of the income the country still manages to maintain a good standard of living.

There's little indication that the government would change, hence all the talks of people just using alternative currencies. Bitcoin would be harder to confiscate than dollars so despite fluctuations and limitations on transaction speed, it's still a good alternative. The only reason it could fail is if the blackouts get out of hand.

With the condition of Venezuela, I think it is worst more than what bitcoin can solve for them, and as the other mate said, their problem is not financial crisis but political crisis, so they have to tackle that first before they can think of using bitcoin to boost their economy, even if they apply bitcoin today, maybe it will help some individuals, but can never help the country has a whole to resolve anything.

I believe they need to start from their government first by changing their leaders because I put the blame on their leaders who could not control the situation until it got out of hand, which mean most of them are just bunch of hands that are not capable of handling whatever positions that they have there.

Accurately, rebuilding an empire, rebuilding a society and establishing common rules, that is the government, they are people who have the capacity to make such changes and works, Bitcoin cannot replace the government to do such jobs because it has no will and it is not created for that purpose, bitcoin only works according to the needs of buying and selling, and individuals who take advantage of these needs will have an increase in income. Venezuela needs a wise government, bitcoin is not necessary

not even a few because if cryptos are banned no one can use it but cryptos arent the only curreny or payment method that are available for use if ever local mediums arent available . 

there are many alternatives out there wether its online or offline   .  people can help thier selves if they want to or if will they unite all together to fight thier issues  . not all problems can be shoulder to the government  . 

In this kind of situations bitcoin is not inaff, sure it can help a lot but in this situation it's a question of political stability.

I disagree, Bitcoin and cryptocurrency are just tools.  The one who will rebuild Venezuela is the government since they are the one who have the capability to do so.  Bitcoin and other cryptocurrency may help an individual but without the governments push, it will just help few and these are those who help themselves to know about cryptocurrency.

It is a hard task to reform Venezuela from this slum, it is the biggest crises the world has seen and it is mainly due to bad governance and corruption and if you continue those bad policies for a while even if you are oil rich you will reap what you sow, bitcoin can help the citizens up to a certain point in trade and commerce and they could convert their wealth and store in bitcoin than their local currency.


If there is bad policies and corruption for years and their income starting going down because of the oil price going down and the expenditure still continue to rise without any actions then you will end up like Venezuela.