The economy of the Venezuela is so unstable that the people of the country have lost their confidence on their fiat currency Bolivar. Instead, citizens of the Venezuela are investing all their money in the Bitcoin or other Cryptocurrency.
People have started storing their money in bitcoins rather than Bolivar. They believe that the price evaluations of the Bitcoins are far greater than that of Bolivar. And the best part of the bitcoins is that can it can also help you to make international trades.
Venezuela is suffering from hyperinflation of their fiat currency since the World War 2. The price evaluation of the Bolivar with Dollar is almost zero. This has made Venezuela incapable of trading on the international platform. But after the introduction of the First cryptocurrency in 2009, Venezuelan government found a way to deal with their hyperinflation.
Today, Bitcoin is used almost like a fiat currency in the Venezuela. People trust Bitcoin more than Bolivar. This has resulted in forming a huge Crypto market in the Venezuela.
Bitcoin over Bolivar
With the inflation rate of 3.5%, Venezuelan has lost their confidence in the Bolivar, Venezuela’s national currency. According to an interview with a Venezuelan, Carlos Hernandez, we come to a conclusion that he feels more secure with Bitcoin than Bolivar. He also added that as he doesn’t have any international bank account, Bitcoin is the only place where he can keep his money safe from inflation.
The financial crisis of the Venezuela can be understood by the fact that on an average a government employee is paid around $ 5 dollars a month. And with the inflation rate over 3%, people are getting poorer and poorer day by day.
Hence, to escape from the inflation, people started investing the Bitcoin. Today, most of the Venezuelans are freelancer and provide their services online. And for the payments, they prefer Bitcoin. There are many online platforms that are used for online trading. You can visit bitcoin loophole website for bitcoin trading.
Converting Bitcoin to Bolivar
Now the real problem with the Venezuelan is to use the bitcoin to buy their necessities. To solve this problem Venezuelans have found an interesting way of doing so. Every business is linked with the bitcoins one way or another. Hence, the bitcoin holders buy thing from other bitcoin holder. This way they are able to exchange bitcoins for product and services.
There are many application and local software that are used by the Venezuelans for Crypto exchanges. Platform like Localbitcoin is quite popular in the Venezuela for the Crypto exchanges. Venezuelans also used application like Coinbase to trade in Bitcoins and PayPal for money transfer. Online money transfer with the help of the bitcoins is preferred because it has negligible transaction fees.
Charity Donation in Bitcoin
There are many NGOs and charitable institution that uses Bitcoin to raise funds for the Venezuela to support their nation’s economy. These charities used the raised money to educate the people and provide basic needs to the poor citizen of Venezuela.
The Bitcoin charity became popular with the first few month of their launch. It was able to feed thousands of hungry mouth on a weekly basis.
Bitcoin is an entity that is unreliable. But the way Venezuelan are suing the Bitcoin, shows that we are still far away from reaching the full potential of the Bitcoin. If there is something that the worlds need to learn from the poor country Venezuela, then it will be the practical use of the Bitcoin and the cryptocurrency. Venezuela is far ahead of the other countries in the Crypto trades. We must take lesson from them to further our understanding on Bitcoin and other Cryptocurrencies.