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Topic: Venezuela's central bank is holding Cryptocurrency! - page 2. (Read 703 times)

legendary
Activity: 3346
Merit: 1352
Leading Crypto Sports Betting & Casino Platform
when banks in a country have started to hold bitcoin owned it can be a threat and huge profits for them, the threat is when the price of bitcoin falls then surely banks will get a lot of losses while for profits can be obtained when bitcoin prices rise then the bank will be very lucky.

Obviously with each and every investment asset there is a certain amount of risk associated with them. And the amount of risk can vary from asset to asset. There are very low risk assets such as gold and the US treasury bonds and normally the central banks will go after them. It is very unusual for the central banks to invest in extremely volatile and high risk assets such as Bitcoins. And I don't think that the governments will ever give permission for the central banks to invest in such an asset. There are practical and administerial complexities involved with such a step.
sr. member
Activity: 784
Merit: 252
when banks in a country have started to hold bitcoin owned it can be a threat and huge profits for them, the threat is when the price of bitcoin falls then surely banks will get a lot of losses while for profits can be obtained when bitcoin prices rise then the bank will be very lucky.
This is truly an extraordinary step for Venezuela. where they dare to hold bitcoin, of course there is a risk that if prices plummet down, they will have to do a reset first, and make a decision that they believe in bitcoin and make a profit.
hero member
Activity: 1190
Merit: 511
Venezuela have build restart their economic with cryptocurrency, after failed down and get economic crisis Venezuela want to build cryptocurrency become their payment transaction, now Venezuela's central bank are holding cryptocurrenct than have hold money with have inflation there, money value in Venezuela have drop and many people have pay for higher amount to buy something in Venezuela.

This is what experts are saying, time will come that there is a country who will seek for help with cryptocurrency, good thing the Venezuela government has come up with this solution as their money really fluctuates, so they need to check all things that will recover their nation, or else their country will be totally worth less.
hero member
Activity: 2464
Merit: 550
Leading Crypto Sports Betting & Casino Platform
when banks in a country have started to hold bitcoin owned it can be a threat and huge profits for them, the threat is when the price of bitcoin falls then surely banks will get a lot of losses while for profits can be obtained when bitcoin prices rise then the bank will be very lucky.
sr. member
Activity: 1344
Merit: 270
Venezuela have build restart their economic with cryptocurrency, after failed down and get economic crisis Venezuela want to build cryptocurrency become their payment transaction, now Venezuela's central bank are holding cryptocurrenct than have hold money with have inflation there, money value in Venezuela have drop and many people have pay for higher amount to buy something in Venezuela.
sr. member
Activity: 1554
Merit: 334
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
Other central banks could also be holding several cryptocurrencies in them. From there, we could see that even the they could see the potential cryptomarket has to offer, and its possibility to compete with fiat in the future. For me, it's a good one since while these news spread out to the generwl public, they inform those who does not know about crypto, or at least introduce to them the word, and let their curiosity drive them to research and hopefully invest to cryptocurrencies, which would be good for all.
STT
legendary
Activity: 4060
Merit: 1448
Quote
Billion dollar oil producing nation plummet economically.

The problem is the efficiency required for that oil to be sold at profit.  The holding of crypto or any other type of money only has the purpose of serving industry and the economy in facilitating productive and profitable enterprise.
   Crypto could be an aid in this country if it were done properly but also thoroughly and consistently.   A sinking ship cannot be saved by stepping on the leak and hoping for the best.  This is why in democracy we have to embrace change even when your party loses power for that moment.   The people of a country should embrace that change to a system can be the best way forward in that it removes mistakes made in the previous administration.    So long as the reform and change of policy, systems and process is ongoing and regularly submitted to the people then there is a chance that even in our flawed way of governing power it is far superior to staying with a never ending dictatorship which will never admit any mistakes or remove problems properly.
   Madro must leave no matter how amazing he might think himself, for these reasons.   The mistakes and problem inherit in Venezuela must be changed, it will benefit all at this stage.  Whatever is obstructing their business has to be altered, it may not even be clear what that problem is exactly.   Some problems are perfectly natural and nobodys fault, they have the largest oil reserves but this oil is very 'dirty' sour sulphur filled oil that cannot be used directly but must be heavily refined.    That work must be done ASAP so the country and its people can benefit from their natural wealth and they can move on from the past failure.
  If Madro loves his country and his people regardless of blame he must accept change is a positive now for Venezuela and he should step aside, surely he can do a deal to retire in peace for the good of all.

http://www.differencebetween.net/science/difference-between-sweet-and-sour-crude/
sr. member
Activity: 1638
Merit: 278
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
Venezuela is one of the country that experience hyper inflation, there residents migrated to other near countries due to the economic problem. The reason why the government of Venezuela are now holding bitcoin is because it can fix an economic issues.
In what way can it fix the economy problem is what I am still looking at, even if they make investment in bitcoin, and the value grows so high to the level where they will have so much money, I don’t think that can still solve the economic system. Before bitcoin can do anything to assist their economy, they must first of all deal with their government operation which to me, I think is very bad and porous.

I think instead of bitcoin alone, they need to change their entire system to full decentralized system except their economy, even the way they run their government needs to be fully decentralized so that they can have a very transparent system for their citizen to make a meaningful contribution, and I think one of the reason why they are failing is actually bad leadership.
full member
Activity: 658
Merit: 103
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
Venezuela is one of the country that experience hyper inflation, there residents migrated to other near countries due to the economic problem. The reason why the government of Venezuela are now holding bitcoin is because it can fix an economic issues.
sr. member
Activity: 806
Merit: 250
CryptoTalk.Org - Get Paid for every Post!
Even if the country's central bank hold stash of cryptocurrencies it won't save the nation from financial crisis and starvation. The collapse of their economy is out of control, holding Bitcoin thus not guarantee profit in the future if a certain country rely on cryptocurrencies worst thing can happen. It is unfotunate for Venezuelan to suffer like this, cant Imagine an Billion dollar oil producing nation plummet economically.

Venezuela suffers from American economic sanctions. And because Venezuela is not as powerful as North Korea and Iran they simply cannot stop American bullying. On the other hand, the USA is doing this because Venezuela since the past has always been against its policies. And as we know, the USA always flexes its muscles a lot especially when they felt threatened in side the western hemisphere.
sr. member
Activity: 1540
Merit: 420
www.Artemis.co
Even if the country's central bank hold stash of cryptocurrencies it won't save the nation from financial crisis and starvation. The collapse of their economy is out of control, holding Bitcoin thus not guarantee profit in the future if a certain country rely on cryptocurrencies worst thing can happen. It is unfotunate for Venezuelan to suffer like this, cant Imagine an Billion dollar oil producing nation plummet economically.
legendary
Activity: 3346
Merit: 1352
Leading Crypto Sports Betting & Casino Platform
I think if a bank uses this method, this might make the bank have a very high bankruptcy risk because at the moment cryptocurrency like bitcoin is already unreliable because the price of bitcoin in 2 years cannot return to high prices.

Each and every asset holds a certain amount of risk associated with it. Central banks around the world holds foreign currency (Forex) as well as treasury bonds from their own government and the foreign nations. These assets are also not risk free (some of the countries have previously defaulted on the interest payments, and the one that comes to my mind right now is Argentina).

The more the risk they take, the chances of profit will also be higher. For example, a few years back the Russian central bank made the decision to sell all of their US treasury bonds and used the revenue that resulted from this sale to purchase gold bars. The gold holding by the Russian central bank went up from 3% of their overall reserves a few years ago to 19.6% in 2019. And remember that the gold prices went up by 20% this year.

sr. member
Activity: 1344
Merit: 270
Venezuela look want to adopt bitcoin in their country, we have support it to get bitcoin become legal there. many advantage with adopt bitcoin as legal transaction in some country, venezuela have try for accepting bitcoin and altcoin to increase their economic crisis in his country, I think one year later bitcoin become legal there.
sr. member
Activity: 1188
Merit: 251
I think if a bank uses this method, this might make the bank have a very high bankruptcy risk because at the moment cryptocurrency like bitcoin is already unreliable because the price of bitcoin in 2 years cannot return to high prices.
hero member
Activity: 1190
Merit: 568
Sovryn - Brings DeFi to Bitcoin
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
Where did you got to know about this holding of crypto currency by the central Bank of Venezuela? Did they announce it themselves or is it some sort of "fact" that has been circulating around (more like rumors and high chance the words got twisted from "might be holding" to "is holding"). A link to the article would be nice.
I honestly think most of the central banks around the world are actually holding into crypto currencies. Only some admits and others keep it a secret. You can always invest on crypto without others even knowing!
He don't have a reliable source, it only makes a fud.  But if that country legalize bitcoin it will be a good news for all of us, it will makes a news then other countries might do the same thing as them as well. I hope that their economic status will be stable and also this bitcoin can help their citizen. But hoarding a lot of bitcoin if its true, the circulation wil be affected.
copper member
Activity: 2968
Merit: 575
www.Crypto.Games: Multiple coins, multiple games
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
Where did you got to know about this holding of crypto currency by the central Bank of Venezuela? Did they announce it themselves or is it some sort of "fact" that has been circulating around (more like rumors and high chance the words got twisted from "might be holding" to "is holding"). A link to the article would be nice.
I honestly think most of the central banks around the world are actually holding into crypto currencies. Only some admits and others keep it a secret. You can always invest on crypto without others even knowing!
sr. member
Activity: 1071
Merit: 253
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
I think this is a bad sign. What do you think about venezuela government always holding a lot of money can fluctuate by 20% - 30% in one night?
No financial specialist will solve this problem and make appropriate financial policies for the country in the future.
In my opinion, the Venezuelan government is making a farce and doesn't want to redevelop the country anymore. Sadly sad for innocent people.

First of all, the Venezuelan government is not holding any cryptocurrency. And I don't think that holding cryptocurrency will give them any additional advantages, as long as their economy remains in tatters. What they need to do is to clamp down on inflation. And that is not going to happen anytime soon, because they are printing the fiat currency without any limit to make salary payments to the government employees. If they stop printing the money, then the inflation my ease, but the government employees and the army will rebel against them.

And I can't think about any advantages if they decide to hold Bitcoin or other cryptocurrency. The problem with Venezuela is that they are unable to afford imports of medicines and essential commodities, due to a fall in the Forex reserves. And how Bitcoin is going to solve this issue, when none of the sellers will allow them to make payments in BTC? On top of that, if they use Bitcoin widely then the value of the national currency (Bolivar) can slide down even faster.
Well, I am not very sure about the reality but the news is in the air that Venezuela’s central bank is holding bitcoin and if we think logically then it appears to be true. No matter how rich or poor a country is, the officials are never poor and they are also never behind times. The major concern should be whether the officials of Venezuela going to utilize bitcoin for the betterment of the state or not. Obviously, bitcoin can bring change economically.
legendary
Activity: 3346
Merit: 1352
Leading Crypto Sports Betting & Casino Platform
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
I think this is a bad sign. What do you think about venezuela government always holding a lot of money can fluctuate by 20% - 30% in one night?
No financial specialist will solve this problem and make appropriate financial policies for the country in the future.
In my opinion, the Venezuelan government is making a farce and doesn't want to redevelop the country anymore. Sadly sad for innocent people.

First of all, the Venezuelan government is not holding any cryptocurrency. And I don't think that holding cryptocurrency will give them any additional advantages, as long as their economy remains in tatters. What they need to do is to clamp down on inflation. And that is not going to happen anytime soon, because they are printing the fiat currency without any limit to make salary payments to the government employees. If they stop printing the money, then the inflation my ease, but the government employees and the army will rebel against them.

And I can't think about any advantages if they decide to hold Bitcoin or other cryptocurrency. The problem with Venezuela is that they are unable to afford imports of medicines and essential commodities, due to a fall in the Forex reserves. And how Bitcoin is going to solve this issue, when none of the sellers will allow them to make payments in BTC? On top of that, if they use Bitcoin widely then the value of the national currency (Bolivar) can slide down even faster.
hero member
Activity: 1806
Merit: 672
We don't even know how much are they owning for their country yet. They might own some but the question really is what is the main point on having them in the first place and until know all I see are just confirmations without any kind of actual detail on how much they have, what price they have bought it, and what are they really planning to do with it in the first place. I have posted on another topic related to Venezuela about how can Bitcoin save them from the hyperinflation they are experiencing and I really didn't believe that they are trying to go for it this fast. I still don't think it can save their assess on fixing their economy especially if they don't know how to trade their Bitcoins properly.

The whole issue has actually been severely muddled to the point that we cannot tell anymore which part of it is real news or which part of it is only the product of interpretation or rumor. I guess the Venezuelan government has not issued a clear statement on this. People are taking tiny hints and made everything explode with all their interpretations. There really are no resources released by Venezuela itself to clear all these.

If I may add, if the Venezuelan government thinks that this is going serve as the redeeming factor to their socio-economic and political woes, they are badly mistaken. They need to wake up.

I know that we cannot trust any kind of news coming from Venezuela anymore especially if its coming from crypto news websites as they just pad and augment local news coming from them but if this thing has any truth with it I don't think Venezuela's government doesn't really know what they are doing on turning to another cryptocurrency as a saving grace for their situation, without going into detail we don't really know if they are in fact holding cryptocurrencies. Without any kind of first hand sources for news coming from Venezuela we really don't know what situation are they really in or have it worsened ever since.
member
Activity: 459
Merit: 10
According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.
I think this is a bad sign. What do you think about venezuela government always holding a lot of money can fluctuate by 20% - 30% in one night?
No financial specialist will solve this problem and make appropriate financial policies for the country in the future.
In my opinion, the Venezuelan government is making a farce and doesn't want to redevelop the country anymore. Sadly sad for innocent people.
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