Why are Venezuelan not switching to Bitcoin?

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Quote from: kelseydustin on June 09, 2017, 01:12:31 PM

Stop being ridiculous. We all know that the government will never ever accept bitcoin as a main currency because they can not control this currency. Moreover, no one will use anonymous cryptocurrency for a country system

The Venezuela government has been choked of US dollars to such an extent they are now accepting all crypto to their government agencies. I dont know they are allowing their citizens proper access but I believe its possible that might be a secondary effect.

Heres a thread on Petro a new currency being setup by their government to be linked to national oil sales - https://bitcointalksearch.org/topic/pre-saleico-petro-ptr-oil-backed-crypto-currency-launched-by-venezuela-3006037

andrei214

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Quote from: tyz on May 04, 2016, 03:26:18 PM

The Venezuelan people are suffering under high inflation (official inflation rate is 124%, inofficial rate is 720%). Why do they not switch to Bitcoin or alternative coins? Do they not know about Bitcoin or do they do not have access to Bitcoin buying options? This is really a mystery for me Undecided

Maybe one of the reason is that, they are scared to try and take risk with bitcoins.If they doesnt havw sufficient idea with what is bitcoin and they didnt see it as option or solution, they arent going to switch in it.

Jake.bluees

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Because the governments do not agree with losing the monetary control over their inhabitants, principally the government of Venezuela, which is absolutely dictatorial. To do so would be to give the Venezuelan inhabitants financial independence.

NicG13

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Look at all the countries that have embraced cryptocurrencies. What do they have in common? They all seem to be highly developed nations (e.g. South Korea, Japan, USA, etc.), don't they? I'm not saying it's not possible for Venezuela to do it but I don't think they're ready yet.

tee-rex

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Quote from: kelseydustin on June 09, 2017, 01:12:31 PM

Stop being ridiculous. We all know that the government will never ever accept bitcoin as a main currency because they can not control this currency. Moreover, no one will use anonymous cryptocurrency for a country system

Not that I terribly disagree with you here (in fact, I agree to a degree), but let's not forget that there are a few countries which are using some major currency like the American dollar or euro as their national currency. For example, a few Latin American countries don't have a national currency and they are using the dollar instead. In this manner, I don't really see any insurmountable barrier for a small or developing country to actually accept bitcoin as a sort of parallel currency. Truth be told, some African countries are said to have already adopted this approach.

SergeYak

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Im not sure but at my opinon this process is very hard for them and they just can't start using bitcoins cause its digital currency and many people can't understand what to do.

Sled

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Quote from: konco_kenthel on October 06, 2017, 06:16:29 PM

Quote from: tyz on May 04, 2016, 03:26:18 PM

The Venezuelan people are suffering under high inflation (official inflation rate is 124%, inofficial rate is 720%). Why do they not switch to Bitcoin or alternative coins? Do they not know about Bitcoin or do they do not have access to Bitcoin buying options? This is really a mystery for me Undecided

I think the Venezuelan state is more concerned with real work than the people choose to work online or the country is afraid if the original currency will be replaced with bitcoin coin type later.

That is not the cause, they are actually into thinking about going into bitcoin because of the huge inflation rate that goes up to 700% and that is why it is good to have bitcoin for their citizens because it will help the people there to avoid from being victim of the inflation because if they will have bitcoin and hold it for long then they will escape from inflation.

STT

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The country has a large inflation rate as the government is printing money to cover a deficit. That is why they will not allow their citizens to freely use other currency and you cannot easily obtain dollars, the inflation is a form of taxation and to this large extent it becomes a way to seize wealth from the country to feed politics and the elite.

I would be surprised if they allowed use of bitcoin but I do wonder how they can ban everything that might be an alternative like gold. I know that trading petrol is considered illegal, largely because its supplied at a subsidised price.
It is very much not a capitalist country, everything is in control of government and if they had democracy they dont now

konco_kenthel

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Quote from: tyz on May 04, 2016, 03:26:18 PM

The Venezuelan people are suffering under high inflation (official inflation rate is 124%, inofficial rate is 720%). Why do they not switch to Bitcoin or alternative coins? Do they not know about Bitcoin or do they do not have access to Bitcoin buying options? This is really a mystery for me Undecided

I think the Venezuelan state is more concerned with real work than the people choose to work online or the country is afraid if the original currency will be replaced with bitcoin coin type later.

adzino

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Quote from: Shikaina on October 06, 2017, 04:24:34 PM

Quote from: tyz on May 04, 2016, 03:26:18 PM

The Venezuelan people are suffering under high inflation (official inflation rate is 124%, inofficial rate is 720%). Why do they not switch to Bitcoin or alternative coins? Do they not know about Bitcoin or do they do not have access to Bitcoin buying options? This is really a mystery for me Undecided

I've just read a news about it today. In Venezuela one can end up in jail for bitcoin mining. So most of the miners do not really stop instead they take the risk and hide their identities or else their families will starve. This country is in poverty but still i dont know that the government is doing for the betterment of their people or atleast to ease the problem.

I don't get it, why do they end up in jail despite mining being legal on their country? Read somewhere that they get accused of terrorism, internet fraud, crime and what not lol. Also read that someone had to bribe the cops $1000 for each mining rig he owned. Had like 90 of those.
Thats really stupid lol.

Shikaina

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Quote from: tyz on May 04, 2016, 03:26:18 PM

The Venezuelan people are suffering under high inflation (official inflation rate is 124%, inofficial rate is 720%). Why do they not switch to Bitcoin or alternative coins? Do they not know about Bitcoin or do they do not have access to Bitcoin buying options? This is really a mystery for me Undecided

I've just read a news about it today. In Venezuela one can end up in jail for bitcoin mining. So most of the miners do not really stop instead they take the risk and hide their identities or else their families will starve. This country is in poverty but still i dont know that the government is doing for the betterment of their people or atleast to ease the problem.

tyz

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Venezuelan Central Bank convened a symposium in which foreign exchange representatives, known as DICOM, and blockchain private sector experts took part. The discussions covered a wide range of topics ranging from the technical aspects of blockchain to practical guidance on the implementation of tokens.
One of the speakers was Ángel Salazar, CEO of the Venezuelan blockchain- OnixCoin company. He explained that the motive behind organising the meeting was to find a way of using the technical capabilities cryptocurrencies in order to strengthen the state economy. He suggested that the bank should issue cryptocurrencies as a strategy to alleviate the fiscal difficulties affecting society.
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Carlsen

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Quote from: tyz on August 26, 2017, 09:04:49 AM

I created this topic almost 16 months ago and it seems Venezuelan people are figuring out the advantages of Bitcoin and crypto currencies while the country's currency madness inflation continues. I am very interested in this happing because it could happen to each country in the world when new financial crisis happens. So I am researching newspaper articles from time to time. Here are three articles from the last week from mass media covering the topics Venezuela and Bitcoin. Worth to read imho.

USA Today: Bitcoin is surprisingly popular in this country

Express co UK: Bitcoin army: More Venezuelans mining for cryptocurrency

CNBC: Cash is useless in Venezuela thanks to hyperinflation — so people are turning to bitcoin

I think is is very surprising that venezuelans are actually mining cryptocurrencies.
There are many reports in tv that show the conditions there. No food, no water no electricity.
It is understandable if they use bitcoins instead of their local fiat. But mining is something that consumes a lot of electricity and you need to have the hardware for that.
I can only assume that there are a few companies who do so. For the large majority of the population I do not think they have the options to do mining with profit.

filharvey

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Venezuelans are suffering from economic crisis.Their currency bolivar has lost its value and many have started using bitcoins and especially bitcoin mining.Electricity is also almost free there from 2007 i think so.But the government has warned the people that they would even be arrested for money laundering if found mining bitcoins.But still,government could not control people fully and most people are fulfilling their day to day needs with bitcoins.

tyz

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I created this topic almost 16 months ago and it seems Venezuelan people are figuring out the advantages of Bitcoin and crypto currencies while the country's currency madness inflation continues. I am very interested in this happing because it could happen to each country in the world when new financial crisis happens. So I am researching newspaper articles from time to time. Here are three articles from the last week from mass media covering the topics Venezuela and Bitcoin. Worth to read imho.

USA Today: Bitcoin is surprisingly popular in this country

Express co UK: Bitcoin army: More Venezuelans mining for cryptocurrency

CNBC: Cash is useless in Venezuela thanks to hyperinflation — so people are turning to bitcoin

krisnt80

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Even some of them trying to save their money into bitcoin its very hard to be able to move their local currencie to bitcoin, besides those their president can close any companie that is allowing people to fight against the country manipulation and abusive behaviour. I do believe this is the main issue a company moves there to provide exchange service to crypto and president says they are illegal and put all into the prison.

FinanceUS

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A simple reason why are Venezuelan not switching to Bitcoin:

Because Bitcoin price is now too expensive for them.

Just kidding. I thought they should switch as soon as possible.

freeyourmind

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Quote from: alani123 on May 04, 2016, 07:37:09 PM

Bitcoin can't serve an entire country in the way that fiat does, currently it can't even take the volume of transactions.

Yeah it wouldn't be able to function like that as it is right now. But in a place with hyperinflation it's a good store of value. Whenever a place is in a currency crisis I would expect a huge influx into Bitcoin as one of the top alternatives along with gold, for protecting wealth.

syaripudin

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I think a lot of the factors that cause it, think the uncontrolled phytochem of Crypto to be monitored by the government, it becomes one of the factors that cause it to happen, crypto currency is a digital-based currency, where the internet becomes the ingredients, it makes crypto can not Controlled by the government, but I think quite a lot of people use bitcoin, and maybe in the next few years crypto will be adopted by every country.

btc_angela

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Quote from: tyz on July 31, 2017, 04:17:58 PM

Worsening Inflation In Venezuela Continues to Drive People Toward Bitcoin and Cryptocurrencies
Venezuela is not the most pleasant country to live in right now. Hyperinflation in the region is soaring to new heights virtually every quarter. It does not appear the central bank has any option to solve this platform anytime soon. Things are only getting worse as more time progresses. It is not entirely surprising to learn more and more people are looking to obtain cryptocurrency. Venezuela set a new weekly LocalBitcoins volume once again.

Thank you for the info. Looks like Venezuelan has no other options really because of the worsening situation there but to go into bitcoins to buy some foods outside of the country. I think the country will be extending far down and bitcoin is the only safe haven for its citizens. The bitcoin weekly volumes already speak for itself. Just hoping that this country can set everything straight once again because the real victim here is its citizen.

Topic: Why are Venezuelan not switching to Bitcoin? (Read 13023 times)