Topic: Venezuela's central bank is holding Cryptocurrency! - page 6. (Read 712 times)

I dont think its a negative more a sign of the times, eventually I expect far greater usage of both gold and other commodity agreements.    The trend over the majority of my lifetime has been towards holdings of debt, we have a crescendo and then a silence much like the drama of an opera we will have to start again with proper value attributed to various alternatives.   Venezuela is discovering this today because they are banned from Dollar but in any case the world will move away from its peak usage of just one nations currency in this way.

Dollars are heavily held as cash by quite large criminal enterprise as its liquidity allows easy disposal but Bitcoin is always compared to gold and on at least this dynamic its probably a good fit.    This is not really a negative on Bitcoin itself, its a free currency available for use by anyone.   The first use of BTC in Venezuela was by its citizens as protection against its government and their capture and destruction of their national currency, for similar reasons Bitcoin can count itself popular in China and owes some of its popularity for helping people all over the world recapture some remnants of capitalism in their own finances.
    I mention gold as it was and is used in Venezuela as freely exchangeable, I believe the government is promoting gold mining within its borders and that makes alot more sense for them then the poor attempts to create a crypto currency.   They had no understanding of free enterprise but commoditys can be utilized even with a rough understanding, sadly all the oil they have requires more attention and expertise to refine properly.

The Venezuela's economy has crashed considerably in past due to Oil price crisis and bad administration. Their currency was pegged against the USD at a fixed rate by government but in reality common public was not able to buy the currency at that rate. This rate was available only to some bureaucrats and top leaders who were getting richer and richer and common public was left with no option but to trade this currency in the local black market where rate is 20-30 times worse than what pegged by government. This way Venezuela's economy is imploding more and more. So the only way out left now is cryptocurrency which is why there government is buying BTC in order to strengthen their economy with a more concrete asset.

Yeah, but bitcoin isn't exactly a safe-haven asset to be holding in the event of a crisis--unless those countries are expecting the end of the banking system (which was feared back in 2008 or so).  What if bitcoin continues to decline in value?  They're going to be left holding a depreciating asset, and it doesn't make sense that they'd do that.  If Venezuela was going to be stocking up on anything, I would figure it'd be gold & silver, not bitcoin.

Just a suggestion: you might want to provide a link when you're sparking a discussion based on news reporting.  That way we don't have to go digging for whatever article you're referring to.

This is actually true because Venezuela has a such a big money crisis when inflation has rise on the point when money became almost worthless and as far as I know with the lowest monthly payment you can get a hamburger and that's it. Regarding the situation, Venezuela and its citizen are getting into bitcoin like crazy and not only in bitcoin , they seemed to love masternodes and they are buying cheap masternodes like Arion and similar cryptos.

The central bank of Venezuela is holding and buying Bitcoin like all the other Central Banks , there was a video from 2015 where the EU parliament encourage the banks to try and hold at least 1 bitcoin and since then I'm sure they bought a lot of bitcoins and ripple and we can see the effect in the current prices.

Also a new a new recession might be in sight as the charts don't look so good so the effect might be bad in the end but we will see.

A link to the article would have been helpful. Back on topic, I'm not surprised. I remember South Korea accusing the North to be behind a huge hacking of one of their exchanges.

For all we know they could be already using bitcoins to pay smugglers to bring in goods they normally can't due to embargoes. Or they could be preparing for a crisis and so are stashing on crypto, which is not a bad idea considering their own fiat is practically worthless.

Or both.

A source would've been great but as it stands, there are multiple national banks around the world which are holding onto cryptocurrencies. This might not be evident on the surface level but digging deep, there seems to be a direct or indirect link between the huge amount of funds and big banks being associated with it.

Coming down to the case of Venezuela, the country has been undergoing hyperinflation for a few years now and with an unstable government, the door to all sorts of corruption is open which could include laundering money through crypto via the central bank.

Not only Venezuela, China and Russia too.

Looks like the communist nations are in preparativo to something big coming.

The great crisis is coming?

What about Venezuela's central bank, bad or good? I am always afraid that the volatility of bitcoin will affect the assets of the Venezuelan nation. If so, the value of Bitcoin is only $ 100 one day, then Venezuela will be in crisis again?
From my point of view, I think this is an extremely wrong decision of them. Bitcoin is one of the high-valued assets because of manipulation, when a country holds so many assets, the fate of that country will be so precarious.
A good central bank will always want to hold low-yielding but sustainable types of assets, I think the central bank asset manager is in trouble.

Venezuela is about to be classified as a rogue nation, to put you into context the highest officials of the country taken a trip to some of the known rogue nations in the World.

One of them is in Nort Korea, another one is in Cuba, you get the image of what's happening?

But even after all I have said about Venezuela, that's not something bad for Bitcoin.

Criminals have been using bitcoin since it's born, and that's haven't made it illegal. Yep, I got you, some investor might be afraid of Bitcoin being used as a way to clean money for bad nations and criminals.

But bitcoin is Pseudo anonymous that means that any movement can be traced, it's easy enough for a developed country to put an AI that search for the Addresses of the funds held by one of this governments

And then putting sanctions or even seize the money, if they try to clean it.

In short: Is not good but it's also not bad for bitcoin.

The more demand there is to Bitcoin, the better. That is the basic logic of something whose value is determined exactly by that rule.

This kind of news is actually widespread even before. It has already spread before that Venezuela will make use of Bitcoin to get away from the sanctions imposed upon them from their western enemies. And this is really a good development for Bitcoin. Perhaps the only negative thing that one can deduce from it is that associating these days with Venezuela's Maduro government is bad for its reputation.

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.