If I am not mistaken there was a thread made by someone who used to lived in Venezuela and earn in crypto currency,
The person stated that it couldn't really fixed Venezuela and you could read that in here :
https://www.coindesk.com/bitcoin-cant-fix-venezuela-i-should-know
Topic: Can bitcoin help rebuild Venezuela? - Darb Finance - page 7. (Read 1463 times)
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Solid points, but Venezuala doesn't have a lot of fiat, they need fiat. They need to start trading oil with other countries, make imports and exports a little more convenient than what its normally defined as fuck all. They should definitely stop backing their resources with the petro crypto, and rather focus on increasing the employment rate and reduce the inflation over there.
Their main problem is that in order to sell that oil, they need money to help them keep the extraction capacity at least stable, not even talking about expanding. So, they need money...to make money! And they don't have money!
The situation is pretty fucked up, like having a privatekey with 100 bitcoin but not affording the cheapest computer or phone to let you get it into a wallet and spend it.
As for that petro crypto, I consider it a joke.
How the hell can you back crypto with a thing you extract and sell? We should all create our own cryptos and back them up with the food we have in the fridge or the food we've eaten yesterday. Or the gas in our cars that might not be there tomorrow.
Anyhow, that country is lost, and if they manage to get someday some real leaders in charge that have a clue about economics probably oil at that time would have lost 90% of its importance.
I think this is more about governments attachment to the currency than anything else. Its not just in Venezuela but in everyone around the world. Lets see why it says bitcoin is liked by the Venezuelan people, it clearly states its because people know its out of maduros reach and it can be bought and sold without having to worry about maduro killing it too because bitcoin can't be ruled over by one entity or can be destroyed by wrong governmental approach.
Now tell me wherever you live, don't you feel like your government whoever that is and which ideology they belong to has too much control of your countries economy? Don't you think your prime minister or king or whatever at the top is can affect your currency way too much? Well bitcoin can stop that globally and not just in third world countries but in places like USA where country seems leader in many things whereas the leader is a moron.
Now tell me wherever you live, don't you feel like your government whoever that is and which ideology they belong to has too much control of your countries economy? Don't you think your prime minister or king or whatever at the top is can affect your currency way too much? Well bitcoin can stop that globally and not just in third world countries but in places like USA where country seems leader in many things whereas the leader is a moron.
I can't say how bitcoin will help Venezuela,but this country desperately needs a stable currency.
I think it is possible for that to happen. Venezuela need huge fiance to help there economy and if for example they invested like 10btc at $4000 last four months, selling at this point for $11,000 would have been $7,000 profit on one btc multiple by 10, that would have been $70,000 profit at least. So , I think btc can help any country going down if they invested at the right time.
You see, the problem most countries do have has always been with their leaders, when this issue happened to Venezuela, rather than the government to quickly embrace bitcoin and see how they can sharply manage the economy situation with it, they were still wasting time trying to create their own cryptocurrency called PETRO which could not see the light of the day as they got lots of critics about it.
The problem is it is on the middle of other super powers countries agenda, schemes and territorial conflicts. It can be one step close to someones borders, I feel sorry for the Venezuela people, they in the middle of someone else' war, economical and maybe territorial. If only the super powered countries leave it alone then someday or somehow, it can be helped. Bitcoin is flexible and can be utilize by any other form of government, if they do so then they will be the first to become richer than any other countries if Bitcoin goes mainstream or it could also lead them to it's opposite effect if it goes down. At this point they are somehow in a tight spot.
No, the problem in Venezuela is not as shallow as can be cured by a simple change of currency. As a matter of fact, the Bolivar, Venezuela's currency, has been used side by side with Petro, a cryptocurrency designed to replace Bolivar. It ended up not sufficient to address a much worse problem, the lightning fast inflation. However, inflation is only an offshoot problem of another problem. The problem in Venezuela is complicated enough, involving socio-political issues, economic, and so on.
surely it can be as long as the country's government does not repeat the mistakes that have been made and its people also want to help improve the economy in me most likely the country will quickly experience good and fast-moving changes too
Usually countries that have economic experience that have touched the worst point can be quite strong later because they have felt the worst direct effects that can occur if they happen again. However, just relying on Bitcoin / Crypto I don't think it will be helpful enough
in my personal opinion, it seems not possible in one hand but in another hand, it can be. (with a little chance) in Venezuela there are a lot of financial problems.BTC can't solve every problem,BTC doesn't depend and nobody doesn't know what will happen tomorrow the situation is various.
So i see that Venezuela is really in crisis now. Bitcoin could help to rebuild the nation but it should start first from their leaders specially their President Maduro in which the people don't trust his administration anymore. Bitcoin is a good tool to rebuild the nation but without a good and strong lider to handle it then any tools and help will be totally useless.
It can really help since their money have zero value already and USD was banned which is not useable at all so they prefer to use bitcoin , indeed they are buying 16 thousands BTC to circulate Venezuela and establishments and Mall are accepting it for payment .
I think not just bitcoin but crypto could play a role in there. I mean think about it if you have a national crypto like petro that is based on a resource you have in abundance then you can actually make a big difference in your countries problems. Why would a country have inflation?
Well, they usually have too much worthless money and nobody really needs that national currency for anything at all that is why, the moment your countries money becomes so useless that even your own nation doesn't use it it becomes worthless. However if you have a crypto pegged to a national resource you have a lot of like petro that will be needed and used because people will want your oil (or whatever it is) and they will have to buy your petro to actually buy your petrol which will make your currency valuable and wanted again.
Well, they usually have too much worthless money and nobody really needs that national currency for anything at all that is why, the moment your countries money becomes so useless that even your own nation doesn't use it it becomes worthless. However if you have a crypto pegged to a national resource you have a lot of like petro that will be needed and used because people will want your oil (or whatever it is) and they will have to buy your petro to actually buy your petrol which will make your currency valuable and wanted again.
You would be a maniac to think that a currency wherein which hardly anyone knows about will be able to upbring an economy that has been doomed for years now.
LoLAnyway, the Venezuelan need to trade, and at the moment they don't have a solid MoE. They could use another currency like USD or EUR as a replacement for Bolivar, but I think the government wouldn't allow this. This idea is only a solution to the MoE for trading purpose, while they have multi-dimensional problems that are not only related to the economy but also politics and governance.
The first things they must do
- throw in the sea every incompetent that is appointed right now
- peg their currency to a more stable or a basket of stable currencies (like Bulgaria with the euro)
- stop throwing money around and cut subsidies for gas and electricity as the first is getting smuggled in enormous quantities abroad and the second is not even enough for the country itself.
- stop with the government control fo companies, privatization is the key here
- call in firms from abroad to set up factories, give them tax exempt, you need to produce something to keep inflation at bay, there are thousands of unemployed, they right now do not produce anything, don't be greedy about some shitty taxes and think of the money they will pay your workers and the produces goods once exported can sustain your trade balance and your currency.
All of this can be done without some crypto, it can be done with fiat, it has proven it works, there is no reason for it not to work in Venezuela.
What it doesn't work is praying to some magic bits that will do the whole thing for you.
Solid points, but Venezuala doesn't have a lot of fiat, they need fiat. They need to start trading oil with other countries, make imports and exports a little more convenient than what its normally defined as fuck all. - throw in the sea every incompetent that is appointed right now
- peg their currency to a more stable or a basket of stable currencies (like Bulgaria with the euro)
- stop throwing money around and cut subsidies for gas and electricity as the first is getting smuggled in enormous quantities abroad and the second is not even enough for the country itself.
- stop with the government control fo companies, privatization is the key here
- call in firms from abroad to set up factories, give them tax exempt, you need to produce something to keep inflation at bay, there are thousands of unemployed, they right now do not produce anything, don't be greedy about some shitty taxes and think of the money they will pay your workers and the produces goods once exported can sustain your trade balance and your currency.
All of this can be done without some crypto, it can be done with fiat, it has proven it works, there is no reason for it not to work in Venezuela.
What it doesn't work is praying to some magic bits that will do the whole thing for you.
They should definitely stop backing their resources with the petro crypto, and rather focus on increasing the employment rate and reduce the inflation over there.
Bitcoin is not going to help here whatsoever, bitcoin was never meant to bring up unstable economies, it never was and it never will. They need to reform all their policies, get loans from the world bank, and spend a lot of money on helping business and individuals grow, because if that doesn't happen, the economy will collapse at any given time.
Honestly, I want them to try Libra and see if it would solve their problem.
You would be a maniac to think that a currency wherein which hardly anyone knows about will be able to upbring an economy that has been doomed for years now. In times like this, it's hard to assume whether people in Venezuela are actually benefiting from using bitcoin or not.
It's not really that hard to be honest. The lowest class of citizens do not use Bitcoin because they either don't know what it is, or they don't have a computer or smartphone to access the internet. Even if these people know about Bitcoin and have a smartphone to access the internet with, the cost of using Bitcoin is another major problem. People there barely have any money to spend on food, let alone pay $2 fees per transaction.
Venezuelans who do benefit from Bitcoin in lesser form are the middle class, but mainly the elite there because they are known with the economical situation and have a decent understanding of what a convenient hedge is.
Rebuilding Venezuela will be ultimately dependent on what the Maduro administration chooses to do, essentially.
Even with all of the benefits that Venezuelans can get from adopting bitcoin, such as the fact that they are able to now have access to a liquid, low cost, long term store of value, as well as being able to be banked, away from the chaotic banking system that they've got with tons of limitations in terms of controls of how much money you can take out, if there aren't structural reforms within the economy, it'll still continue to sink down.
It's deeply saddening to see Venezuela in this state. BTC is able to help Venezuelan individuals for sure, but when it comes to things like their trade balance, spending deficit, and rampant inflation, there is nothing it can do.
Even with all of the benefits that Venezuelans can get from adopting bitcoin, such as the fact that they are able to now have access to a liquid, low cost, long term store of value, as well as being able to be banked, away from the chaotic banking system that they've got with tons of limitations in terms of controls of how much money you can take out, if there aren't structural reforms within the economy, it'll still continue to sink down.
It's deeply saddening to see Venezuela in this state. BTC is able to help Venezuelan individuals for sure, but when it comes to things like their trade balance, spending deficit, and rampant inflation, there is nothing it can do.
I do not think that Bitcoin will be able to somehow influence the economic situation in Venezuela. This country needs fundamental structural reforms. It is not enough to have money, they still need to be able to use it. And it seems to me that just the leadership of Venezuela does not know how to govern the state. This country has the largest proven oil reserves in the world, but look at how people live in Venezuela and how people live in Saudi Arabia. The problem is not that there is little money, but that they are not able to direct them correctly.
In times like this, it's hard to assume whether people in Venezuela are actually benefiting from using bitcoin or not. But to give you a general answer on what you're asking, no, bitcoin will not save Venezuela from the massive pitfall it is in right now. The only thing that can help these poor people is a complete government restructure. Ditch everything that's rotten, replace them with new and hope for the best. Sure, it will not be an easy feat, but it's a permanent solution, not a band-aid one like bitcoin offers to citizen's who can use bitcoins for their transactions on everyday life.
Yep, at the current state of BTC, it would not be that helpful. My tx is still stuck for 6 hours, and only God knows when it will be confirmed.
Honestly, I want them to try Libra and see if it would solve their problem.
Honestly, I want them to try Libra and see if it would solve their problem.
President Chavez did something wrong in government spending. He thought that releasing fiat currency to all people and printing of it will cause for economic stability. He does not know that it may result a great depression made by inflation.
Right now, I don't know if Venezuela can help using bitcoin. It needs a foreign investment and loan. Something good if they will recover in future. I hope Venezuela's citizen are in good hands right now.
Right now, I don't know if Venezuela can help using bitcoin. It needs a foreign investment and loan. Something good if they will recover in future. I hope Venezuela's citizen are in good hands right now.
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