Bitcoin Forum

You might find this account of the problems facing people in Venezuela interesting. It shows the human cost of hyperinflation.

* https://www.coindesk.com/bitcoin-cant-fix-venezuela-i-should-know

(I first posted this on my blog (https://www.coindesk.com/bitcoin-cant-fix-venezuela-i-should-know))

Cool, I think I read previously that the cheapest place in the world to mine bitcoin (electricity costs) is Venezuela. I wouldn’t recommend it though, very dangerous & illegal there. Police are a law unto themselves.

My friend was talking about this possibility and I remain not to trust his opinion, now here everything I was really sure is just an assumptions and nothing have changed there. But, I think there are still positive impact for them even just a little.

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Well, I think we, people who lives outside Venezuela think that bitcoin or crypto can solve the hyper inflation they are experiencing. It's really heart breaking how this message came from someone who really leaves and experience the economic situation find it hopeless for Venezuela to fight back hyper inflation with bitcoin as alternative, which most of us think. As we think it is as simple as that, for them it is really big since the one who posted this is someone who even works freelance in crypto and even left Venezuela and his family to get out of the crisis.

Yes it can't because that has nothing to do with cryptocurrencies. This ''crypto misconception'' is valid for all other countries experiencing similar economic conditions. Bitcoin and other cryptocurrencies can't solve any problem these countries have but can make them worse.

I disagree. It is true that BTC is not some all powerful snap machine that can instantly solve all our problems, but it can help in certain situations(FIAT problems etc) and it cannot help in certain situations which is why we need to be realistic.

How could it make things worst?
It is a way to earn money so how could it possible make things worst?

I also agree on this we assume that BTC could solve problems.
But we need to wake up from dreaming and start being realistic that not all of it could be solved by crypto.
This is the misconception of people in crypto they all think that crypto could fix everything,that crypto could make them instantly rich and wealthy.
The article is an eye opener that not everything could be fixed with crypto.

In terms of electricity consumption it is cheap, but the prevailing political issues isn't supportive with any form of growth. People have begun to starve for food, the army has joined hands with the public against the government. By this time in whatever way possible the common people will be threatened. Even with the cheap electricity production it has shut down the electricity on cities which has caused more business to shut and move away towards other nations for living.

Quote from the article: So let me, as someone who used bitcoin to survive in Venezuela, clear up the misconceptions: Bitcoin can’t fix the situation in Venezuela."

Personally, I never actually saw bitcoin to be the sort of "saving grace" that would fix Venezuela. I think bitcoin is too young to have such an effect. I only saw bitcoin, on it's current state(price volatility, low adoption, etc), as a temporary solution to at least make their lives slightly better, by having something to earn, and something as a hedge against the hyper-inflated bolivares.

Wait, are you claiming that you're the one who wrote that article?

This will just imply that the misconception that most people have that bitcoin is one of the best solution to poverty and economic problem is true. It can be a temporary solution since it can provide people an opportunity to earn money for their daily expenses, but the problem it self(hyper inflation) cannot be solved by it.

Bitcoin still too far to solve the financial problem in the country but it really helps personal financial because people can have a new solution to make money and if they can get more bitcoin and convert it into local fiat, I think they can buy their daily needs with that money.
Bitcoin itself still need to prepare for a new way to help every people in the country so they can get a better life.
Maybe in someday, when bitcoin is ready to be the next payment system in every country, bitcoin can solve the financial problem.
Until that time, I think every people could get bitcoin in many ways so they can survive in hard situations.

Venezuela as a country is considered as one of the cryptocurrency friendly country and at the same time the cost of electricity in Venezuela is cheap at that it can be the best place for cryptocurrency mining but don't know about the ICT there that is another determining factor and also the law how the police operate and what is they mindset towards cryptocurrency.

The crisis in Venezuela seems to have deepened and outsiders like us cannot imagine. Their government has not yet had any effective solutions to inflation. Politics of Venezuela has just happened the coup, it makes their country become a serious crisis. I think with the current Venezuelan situation, if without any government policy, bitcoin will not save a hyperinflation economy.

But that's what makes it fun! There's nothing better in life than annexing a small portion of a collapsing country and making use of the cheap resources while dodging the legal barriers that exist. All you need is something that allows for you to defend your area and you're good to go. Just get some buddies together and move all the mining equipment in, so long as the money keeps flowing I don't know if anyone is going to raise their eyebrows.

Of course, don't actually do this because it's probably illegal on multiple levels and breaking laws isn't cool. Stay in school, kids.

Considering that there are Venezuelans that are actively farming Runescape items and feeding their families (or just themselves) that way, I'm pretty sure that there would be a limited amount of activity they could have within the Bitcoin community. A lot of them might be able to actually make decent money through signature campaigns if they had anything but new accounts, but I assume that their options would be limited due to their lack of knowledge of English. They'd probably be the equivalent of kings there, considering that the Runescape revenue is marginal compared to their normal salary and the only saving grace is that their money comes in the form of USD as opposed to the Bolivar.

People in Venezuela needed time to grow more and involve themselves in bitcoin. I don't really think it will fix them but I do really believe that if they are ready to adopt bitcoin for sure it will be a very massive adoption to all of the people there.

I'm so sorry about what you've been through. We can only watch what's happening in Venezuela. There is nothing we can do.

But I think it's pointless to wait for crypto beings to save Venezuela. There are some structural problems in the country. First of all you have to do self-sufficient production and then produce something for global trade. But I think Venezula is a little out of this point. Cryptocurrencies may be the solution for many things, but you must first have an economic system. Venezuela is currently in an environment that does not work. I think that Venezuela can stand up again with common sense and some help. I hope, at least ...

Bitcoin won't magically clean up corrupt in their country or create more resources.  The impact bitcoin has had on Venezuela is very small, many people lack the technology to be able to use it.  Also the media is playing up the situation in Venezuela, its really not as bad as they portray it.

Venezuela has been a great testing ground for the proliferation of Bitcoin. I think in times of turmoil, Bitcoin has risen to give the people power. In Venezuela, the people are empowered with the choice of being able to utilize Bitcoin.

There is a great documentary on Bitcoin in Argentina found here (https://www.smartbitcoininvestments.com/bitcoin-documentary-list/#10_bitcoins_in_argentina).

The article echoes what I have in mind: bitcoin alone cannot change the fact that Venezuela is already in a worst state that cannot be fixed with remedies and temporary solutions. You have the police who can confiscate your coins and you have an ill-functioning government who saves you from nothing. What the country needs is a complete restructuring of their government and put the work unto themselves to start rebuilding all over again. Bitcoin is just a bubble gum tapped into a blown tire, not an entirely new tire that is durable enough to endure yet another journey into this sorry world.

I myself is not looking at Bitcoin as the be-all and end-all solution to many financial and economic ails that baffled humanity since time immemorial. What is clear is that Bitcoin can be useful in many ways. The problems that exploded in Venezuela are all complex and most of those problems started decades ago. We should be looking at it like the lens of an aid that can be helping in one way or another but will never solve the problems as they are rooted deep and wide. What here in Venezuela we can see how cryptocurrency can be utilized and can help people survive.

There are a lot of people who do.
Even worse there are a lot of people who rejoice when seeing a country going in flames by thinking those will buy BTC and so they will get rich.
And worse, there are people praying for disasters, an economic crisis so that their stash would be worth millions.

Of course BTC won't save Venezuela, no coin can save Venezuela, the gold standard can;t save it, countries have gone bankrupt for centuries with it, at this point nothing can save it.
It's going to be a long and painful recovery that at some points will be even worse than the first years of the crisis and many will regret it, I've seen this before, this one will be no exception.



 ;D ;D ;D

Oh yeah, tell me more about this power BTC gave to poor people that couldn't buy even one mBTC.
They are oozing with power, I can feel their aura even here in Europe.