Topic: Venezuela & The Bitcoin (Read 632 times)

Oh yeah, we can all switch to bitcoin and a miracle will happen

Let me ask you something, how do you think that these will happen just because of the use of cryptocurrency:
- the government will suddenly have more money to spend
- food and basic necessity stuff will suddenly appear in shops
- hundred of thousands of jobs (and well paid one) will be created
- the whole infrastructure will be repaired (and I'm not talking only about roads here)

Even if you would concentrate only on the money...

Venezuela's GDP lost somewhere around 100 billion (that's yearly).
In 5 years that's 500 billion lost, or...value of all the bitcoins mined today if the price would be 25k$.

And don't forget, BTC has a long list of countries which it is supposed to save...

The economic sanctions that Venezuela is enduring are not really the reason this is happening to them, the economy of Venezuela was in a really bad shape already and the sanctions are just helping to show the weakness of their economy, but I think you are missing my point, when things get so bad people are not really going to look for the approval of the government for their actions, in fact cryptocurrencies could become illegal at that point but it will not matter because if people have to choose between obeying an unjust law and assuring that they will have money tomorrow to eat something then they will always choose the latter.

The fact is that Venezuela has huge problems with other countries that support sanctions and therefore this country has a very poor economy and practically no value of the national currency.  I think that the situation can dramatically change if not only people accumulate cryptocurrency on their own, but the state apparatus must make a decision in support of Bitcoin and other higher-rated cryptocurrencies, and not launch its own national cryptocurrency, which cannot show good results  in the current situation in the country.  I believe that the use of cryptocurrency on a national scale will bring more benefits than the use of fiat currencies of hostile countries, such as the United States.

In my opinion this shows at a small scale what it could happen at a larger scale when the fiat currency system fails, people are going to do everything that they can in order to protect themselves and if the currency created by the government becomes so useless like what it is happening in Venezuela then they are going to use everything that they have at hand to protect their wealth, that is why I think that if we get another crisis like the one we saw in 2008 the adoption of bitcoin will go through the roof.

Good to hear from a person who actually live in Venezuela, all the news i hear is from the media or some half ass hear say from those media and it is good to hear who is living and see your perspective of things who know much better than anyone in this forum, good to hear that you have a team who is promoting bitcoin to the general masses who are not aware of it and hopefully the government will create a legal framework and help the citizens recover from the situation you are going through.

Peace bud.

Venezuela is the country which is passing the worst momentum in its History, It's horrible to see when this type of Oil-based country is suffering a financial crisis and people are being deprived of their basic needs, So cryptocurrency could be a good way to make cover this situation, but I don't know how much it could be helpful for this purpose, We know their Government has tried to lunch to Peso based crypto for the foreign investment but it was in a vain, that project couldn't see the light of success, Basically they are in this position for the International embargo so they have to set again oil oriented cryptocurrency, I think that could be a good thing for them.

The Venezuelan situation is by far the most meaningful example in Bitcoins 10 years of it being used by to protect themselves in a hyper inflationary economy. this is why we do what we do. Bitcoin is directly helping people escape the worst possible financial situation a person can experience. Before Bitcoin, there was more even more misery for people with crap governments. The people switching to Bitcoin have no reason to trust government currencies again. they will use Bitcoin for the rest of their lives. this is part of how the different layers of adoption globally takes root.

They could have implemented something as simple as that but they haven't and therefore encourage yellow journalists, if you genuinely wish to follow the evolution of the Bitcoin market in Venezuela use yadio.io is a site run by Venezuelans who truly understand what's going on.

https://yadio.io/

One slight correction, Citgo was never seized by the US state or anything else.
Furthermore, the Office of Foreign Assets Control has declined Conoco's claims of shares in Citgo because it might go against the sanctions imposed by the Government.  So at this point, Citgo is quite safe and is making millions in profit.


As always s story about nothing.
If you make a graph of how many bolivars people of Venezuela have spent for bread it will look like they are eating x1000 more bread that three years ago.
I really wish coindance would have the option of showing not only VES and BTC but also the volume in USD, so we could have a better view.

In the conditions of such a high hyperinflation, Venezuelan citizens were simply forced to look for an alternative to their national currency. But given that the price of Bitcoin is extremely unstable, it would not be entirely reasonable to buy it to save money. It would be much more reasonable to buy US dollars for this. I think that Bitcoin was bought more by those people who hoped to increase their capital, due to the alleged increase in the price of digital gold.

Bitcoin and other digital currencies are providing a lifeline to many people in the troubled Latin American country of Venezuela

Hey all of you who talk crap, do any of you live in Venezuela? Of course you not!

I live in Venezuela and I can talk properly about what's going on in my country, more importantly, I belong to an organization that is putting the skin in the game trying to promote Bitcoin in my country.

Bitcoin is undoubtedly a method of payment that is becoming increasingly popular in Venezuela, all thanks to the legal framework that the government is trying to create, and you know what's best we don't give a damn.

The truth is that Venezuela has not broken any records in a long time.

The problem is that journalists use bolivars to measure Bitcoin purchase transactions but do not take into account the country's inflation. A more adequate measure of the volume is to use the dollar, with its value indexed after the open market (generally known as the black market) BSF/USD conversion.

Using the data provided by Yadio.io, a website that tracks the actual price of the dollar-based on Bitcoin's buy/sell transactions through LocalBitcoins gives us a better perspective.


According to their data, 294,682,299 million dollars were exchanged in a year, this gives us a figure of at least 24.56 million dollars exchanged each month, 5.66 million dollars a week and about 800,000 dollars on average per day.

That's at least $33,640 every hour, that's a tiny amount of money compared to big exchanges in other countries.

Bitcoin is being used by average people in Venezuela, and this solid data shows that their buying interest has not ceased despite having gone through a brutal bear market, we are using Bitcoin as a tool to protect ourselves from this corrupt government, as intended by Satoshi Nakamoto.

The numbers in Bolivars are nothing more than a proof that bad money will always be exchanged for good money and that bad money will always lose value and more of it will be needed to obtain good money.

Source: https://yadio.io/

If you've got a currency that's failing in spite of those resources, you might not have much choice other than to either borrow a ton of money from another country or adopt its currency in place of yours.  That's exactly what Venezuela is doing. 

I can't say I understand the entire political situation in Venezuela, but it's my understanding that the political system is very messed up and those resources have been mismanaged along with many other things, which has led to the hyperinflation situation they're going thru. 

Bitcoin might be getting hot down there, but it's probably not being used as money.  People with money to save might be converting it into bitcoin as a store of value, but it's not clear to me if that's the case.  I just don't think it's being spent for everyday goods.

PDVSA still gets EUR and USD via proxy countries. Most of the export to the US stopped when Trump seized Citgo anyway. It is very unlikely they are using crypto for anything. Of course they would love if others used petro, but the international trading partners won't.

Of course Trump's actions were the perfect scapegoat to cover the economic ineptitude and disaster from the "socialists", and that is exactly the official propaganda: that absolutely everything is the fault of USA. But it isn't, and most people don't fall for it, we might be oppressed, but not idiot.

If Trump hadn't done nothing, the situation here wouldn't have improved either; and yes, the fault would still lie in the USA... Most of you will never have to live this, so naturally you won't get it. But those that survived the eastern bloc soviet union days, might understand. Even if USA dropped the sanctions against the individuals from Maduro's regime, nothing would change, and they would STILL be at fault. These sanctions only pissed those corrupt fellows that kept spending fortunes in USA. Stomping in the misery of the people, those close to the regime just love spending fortunes in Washington DC, New York and Miami, and all of that with dirty money from Venezuela, THE REASON everybody else is piss poor and miserable earning 2$ or such per month. If anything, just revoking their visas and kicking them out was commendable. Rest is meh. They still live here like kings away from the impoverished masses, and often travel to other countries that give them the same treatment.

Venezuela people are in a good position if they are going to embrace bitcoin as mass volumes are being bought up in record numbers right now.
Have you seen those purses made out of bolivars?
They have the cheapest electricity in south america and are using this to mine bitcoin like crazy.
Congratulations to them if they can adopt it as a stable and reliable currency for their country.
All the power to them!

The issue about the Venezuelan should have been fix all this while but their government is extremely not taking the right measure and he's running the country through his pride which I believe was one if the reason whooy the US President administration required sanctions on Venezuela and freezing of their government assets in the United States.

I find the volumes on localbitcoins not that telling, especially with how it doesnt show why the coins have been bought. I'm leaning towards speculative buying and selling rather than people buying Bitcoin as safe haven.

Another thing is that due to their fiat currency losing purchasing power constantly, the increasing volumes on localbitcoins are kinda deceiving because in USD the volumes haven't actually gone up, but have been trending down.

That makes sense.

Well, I can't imagine a big company or a country govt trying to control Venezuela through this event and somehow it is possible.

Could be some multi millionaire company trying to buy at Venezuelan territory.

Or maybe their government or some local citizen that become rich. Who knows since it's unknown the source of it.

Also a pump dump could be the reason for a sudden buy adoption.

Someone is definitively trying to achieve greatness using bitcoin which is a good thing.

it's not surprising why bitcoin concentrations tend to be higher there compared to petro, I'm surprised they cut petro reserves to only 30 million barrels.

movement in localbitcoins is also a reaction of its citizens regardless of the economic burden of embargo sanctions faced by the government. I still believe they are still noisy with panic, and don't know how long they will be able to minimize international sanctions and gradually recover.