For sure inflation is worse in Venezuela or Argentina than is US. So i guess it makes sense to save in dollar to protect from it. But USD is also being devalued, so...
What about precious metals ? It sure seems a better idea compared to USD
Topic: Venezuela and the devaluation of the bolivar - page 2. (Read 5581 times)
If Chavez is in power I think the best thing to do as a Venezuelan is emigrate ...
I am surprised hashing hardware would be expensive in Venezuela. Usually populist governments allows for free import of computer hardware because it is believed it helps education, business, blah blah.
The black market money changers turn their bolivars back to dollars at the fixed official rate because they are well connected. That is why it is so corruptible system.
As a Venezuelan, the last thing you want to hold are bolivars, if a devaluation is inevitable. It is very shocking to see how big of a drop it makes, *always* much more than expected.
The black market money changers turn their bolivars back to dollars at the fixed official rate because they are well connected. That is why it is so corruptible system.
As a Venezuelan, the last thing you want to hold are bolivars, if a devaluation is inevitable. It is very shocking to see how big of a drop it makes, *always* much more than expected.
if venezuela is anything like argentina then the black market dollar exchange will be to protect savings from devaluation.
Best not to get too offtopic into politics but chavez is on the no.1 hitlist and economic attack must surely be a real threat. But fighting the market seems impossible to me.
If i was to fly in with mining equipment what's the likelyhood of getting siezed/taxed/hassle? Also, what's the state of internet censorship over there? What's the penalty forblack market moneychanging? It's interesting to know. I also wonder what the moneychangers do with all thier bolivars once they have them.
Best not to get too offtopic into politics but chavez is on the no.1 hitlist and economic attack must surely be a real threat. But fighting the market seems impossible to me.
If i was to fly in with mining equipment what's the likelyhood of getting siezed/taxed/hassle? Also, what's the state of internet censorship over there? What's the penalty forblack market moneychanging? It's interesting to know. I also wonder what the moneychangers do with all thier bolivars once they have them.
Is there any gov source saying that ? Because suppose you're the opposition in Venezuela, that's a nice rumor to start if you want a better score 
Not saying they won't do it, especially since they did it before. Just saying that it's the kind of propaganda both sides will use before elections.
to minero1 :
- how does investing in precious metals work in Venezuela ? caps, taxation ?
- was trying to understand the black market value of bolivars. Basically there are people willing to give away bolivars to get usd. Question is why ? Is there some products available only in USD ? or is it mainly for savings ? (abroad ?)
Not saying they won't do it, especially since they did it before. Just saying that it's the kind of propaganda both sides will use before elections.
to minero1 :
- how does investing in precious metals work in Venezuela ? caps, taxation ?
- was trying to understand the black market value of bolivars. Basically there are people willing to give away bolivars to get usd. Question is why ? Is there some products available only in USD ? or is it mainly for savings ? (abroad ?)
Its really disgusting what the Venezualan government is doing to their people.
Yet they (the socialist) have been legitimaly elected by the majority of the population three times and i really don't know for sure why, well, i guess i do, the lack of decent a opposition leader, the huge social spending programs people like so much, the natural charisma of the guy (Chavez) to name a few, they all appeal to the mostly uneducated majority. Democracy can be a bitch i tell you.
I hope people change their minds before the presidential election this october, i believe in alternancy in the exercise of power.
if it's devaluated, that means cheap electricity, so they can convert their bolivar in watts, and their watts in bitcoins
Hashing hardware is not cheap at all, the official exchange rate is for the food industry, well connected individuals, corrupt politicians, and the presidential family so no luck on that one but on the other side the electricity here is super cheap and so is the gasoline, if you wish to generate your own power.
As of february 25th of 2012 price is 0.015 US Dollars per litre (0.06 for the gallon) of poorly-refined-highly-contaminant-but-still-working-gasoline (over 800ppm of sulfur) and 0.011 US dollars per kWh from the grid and with that i think it qualifies as the cheapest in the whole world, can't complain.
Bring on the FPGA we will keep going the GPU way!
I heard gas prices in Venezuela are one of the lowest in the world (at cents per gallon) because its heavily subsidized. This mean that electricity costs are probably ridiculously low, at the very least one should be able to generate electricity cheaply with a power generator.
Imports are super cheap with the bolivar *over* valued, so hashing hardware should be much cheaper too.
Imports are super cheap with the bolivar *over* valued, so hashing hardware should be much cheaper too.
if it's devaluated, that means cheap electricity, so they can convert their bolivar in watts, and their watts in bitcoins
How does it mean cheap electricity? The income (in bolivar) of the population wouldn't magically rise, even fall (in USD). Their savings would be devalued. Even with electricity cost staying the same (in bolivar), which is unlikely because the power company probably depends in some form or another on stuff they have to pay in hard currency, it doesn't magically become more affordable, does it?
if it's devaluated, that means cheap electricity, so they can convert their bolivar in watts, and their watts in bitcoins
Its really disgusting what the Venezualan government is doing to their people.
The Mexican Peso suffered this type of currency control for decades. The rich, the bureacrats and the political elite simply wiped out billions of dollars out of the economy. Lopez Portillo, a president at the time during one of catastrophic the devaluations even blamed the banks and nationalized them!
If I were a venezuelan I would buy a lot of super cheap imported hashing power and mine bitcoins like crazy with the subsidized electricity (or gasoline generated electricity).
The Mexican Peso suffered this type of currency control for decades. The rich, the bureacrats and the political elite simply wiped out billions of dollars out of the economy. Lopez Portillo, a president at the time during one of catastrophic the devaluations even blamed the banks and nationalized them!
If I were a venezuelan I would buy a lot of super cheap imported hashing power and mine bitcoins like crazy with the subsidized electricity (or gasoline generated electricity).
There is also a currency exchange cap in place in Venezuela so is nearly impossible to transfer funds overseas, being mining the only method to get a hold on bitcoins.
No exchanges.
By now i only have 2.5GH/s, i'm unable to provide that service.
I know of other 2 guys running over 1GH/s. Some of my clients must be connected too, i've been evangelizing a lot, when they walk into my shop first thing they see is Mt.Gox live in a 32" TV, they all ask.
Si eres Venezolano enviame un MP y nos pondremos en contacto, hay mucho en lo que podemos apoyarnos!
Quote
2) How can Venezuelans buy bitcoins? Is there an exchange there? Are there any mining farms there?
No exchanges.
By now i only have 2.5GH/s, i'm unable to provide that service.
I know of other 2 guys running over 1GH/s. Some of my clients must be connected too, i've been evangelizing a lot, when they walk into my shop first thing they see is Mt.Gox live in a 32" TV, they all ask.
Si eres Venezolano enviame un MP y nos pondremos en contacto, hay mucho en lo que podemos apoyarnos!
I am not a person who likes giving strong advice on financial investments, basically, because economics are tied to many unpredictable factors. However, this time, I would make people from Venezuela to reconsider how safe their savings are.
The currency of Venezuela, the bolivar, does not float freely in the market. It is pegged to 4,30 bolivars per dollar. Historically, currencies pegged to external currencies, with very different fiscal policies, such as the bolivar and the dollar, finish being devalued quite heavily. A really sad example was the Argentinian peso and the "corralito" it ensued in 2001.
I attach a link in Spanish where a heavy devaluation of the bolivar is likely, because of the huge difference of current inflation between Venezuela and the US.
http://www.eluniversal.com/opinion/120103/cuando-sera-la-devaluacion
No government should have the right to wipe out their citizens hard-earned money. Venezuelans may consider putting part of their savings in Bitcoin.
The currency of Venezuela, the bolivar, does not float freely in the market. It is pegged to 4,30 bolivars per dollar. Historically, currencies pegged to external currencies, with very different fiscal policies, such as the bolivar and the dollar, finish being devalued quite heavily. A really sad example was the Argentinian peso and the "corralito" it ensued in 2001.
I attach a link in Spanish where a heavy devaluation of the bolivar is likely, because of the huge difference of current inflation between Venezuela and the US.
http://www.eluniversal.com/opinion/120103/cuando-sera-la-devaluacion
No government should have the right to wipe out their citizens hard-earned money. Venezuelans may consider putting part of their savings in Bitcoin.
Two thoughts....
1) The bolivar does float freely on the black market in Venezuela.
2) How can Venezuelans buy bitcoins? Is there an exchange there? Are there any mining farms there?
RowIt shows 27 nodes from Venezuela. I'm curious why they wouldn't be more interested. Maybe it needs to be "spanish slashdotted" or whatever the equivalent is...
I am not a person who likes giving strong advice on financial investments, basically, because economics are tied to many unpredictable factors. However, this time, I would make people from Venezuela to reconsider how safe their savings are.
The currency of Venezuela, the bolivar, does not float freely in the market. It is pegged to 4,30 bolivars per dollar. Historically, currencies pegged to external currencies, with very different fiscal policies, such as the bolivar and the dollar, finish being devalued quite heavily. A really sad example was the Argentinian peso and the "corralito" it ensued in 2001.
I attach a link in Spanish where a heavy devaluation of the bolivar is likely, because of the huge difference of current inflation between Venezuela and the US.
http://www.eluniversal.com/opinion/120103/cuando-sera-la-devaluacion
No government should have the right to wipe out their citizens hard-earned money. Venezuelans may consider putting part of their savings in Bitcoin.
The currency of Venezuela, the bolivar, does not float freely in the market. It is pegged to 4,30 bolivars per dollar. Historically, currencies pegged to external currencies, with very different fiscal policies, such as the bolivar and the dollar, finish being devalued quite heavily. A really sad example was the Argentinian peso and the "corralito" it ensued in 2001.
I attach a link in Spanish where a heavy devaluation of the bolivar is likely, because of the huge difference of current inflation between Venezuela and the US.
http://www.eluniversal.com/opinion/120103/cuando-sera-la-devaluacion
No government should have the right to wipe out their citizens hard-earned money. Venezuelans may consider putting part of their savings in Bitcoin.
Here's a better article that won't get lost during translation: http://www.nasdaq.com/article/venezuela-may-devalue-exchange-rate-further-after-electionscapital-economics-20120111-00469
I am not a person who likes giving strong advice on financial investments, basically, because economics are tied to many unpredictable factors. However, this time, I would make people from Venezuela to reconsider how safe their savings are.
The currency of Venezuela, the bolivar, does not float freely in the market. It is pegged to 4,30 bolivars per dollar. Historically, currencies pegged to external currencies, with very different fiscal policies, such as the bolivar and the dollar, finish being devalued quite heavily. A really sad example was the Argentinian peso and the "corralito" it ensued in 2001.
I attach a link in Spanish where a heavy devaluation of the bolivar is likely, because of the huge difference of current inflation between Venezuela and the US.
http://www.eluniversal.com/opinion/120103/cuando-sera-la-devaluacion
No government should have the right to wipe out their citizens hard-earned money. Venezuelans may consider putting part of their savings in Bitcoin.
The currency of Venezuela, the bolivar, does not float freely in the market. It is pegged to 4,30 bolivars per dollar. Historically, currencies pegged to external currencies, with very different fiscal policies, such as the bolivar and the dollar, finish being devalued quite heavily. A really sad example was the Argentinian peso and the "corralito" it ensued in 2001.
I attach a link in Spanish where a heavy devaluation of the bolivar is likely, because of the huge difference of current inflation between Venezuela and the US.
http://www.eluniversal.com/opinion/120103/cuando-sera-la-devaluacion
No government should have the right to wipe out their citizens hard-earned money. Venezuelans may consider putting part of their savings in Bitcoin.
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