[2016-12-17]Venezuelans Are Buying Bitcoin to Purchase Basic Goods, Treat Cancer

[WishICanTurnBackTime]

Venezuelans Are Buying Bitcoin to Purchase Basic Goods, Treat Cancer

Venezuela’s national currency Bolivar Fuerte is rapidly losing value amidst hyperinflation. The official FX value of the Venezuelan bolivar is $1 to 9.95 VEF but in actuality, in the country’s black market, local residents are paying around 5,000 VEF for $1. To avoid the devaluation of bolivar and acquire necessary daily goods, Venezuelans have started to rely on Bitcoin to finance their expenditures.
By local exchange rates, 100 bolivar is equivalent to $0.02. The country’s highest denomination banknote was 100 bolivar, but the government demonetized it earlier this week. As a result, the Venezuelan economy and monetary system experienced turmoil as people struggled to obtain cash to finance daily living.
Currently, the largest denomination banknote is the 50 bolivar note, which is worth $0.01. So, for Venezuelans to purchase a slice of bread or lunch, they will need 200 of the 50 bolivar banknotes to purchase lunch at around $4.
Nathan Crooks, Bloomberg News chief in Venezuela, revealed that people carry stacks of cash in order to purchase basic goods like food, toiletries, etc.

https://cointelegraph.com/news/venezuelans-are-buying-bitcoin-to-purchase-basic-goods-treat-cancer

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[chesatochi]

What I think is a morose new for the Venuzulien people who are losing purchasing power for solely acquire the basic need. At least bitcoin help them to keep they wealth and have another option to buy the stuff they require. That happen when a government print too much money and the people can lose everything they acquire over a lifetime.

[Kprawn]

A problem I see with this, is that the government might perceive Bitcoin as a threat and in reaction they will start to over regulate the

technology to protect their reserve currency. The whole situation was caused by the government making bad political decisions and they might

make even worst decisions when they are threatened. On the other hand, if they react negatively, people will be drawn to this technology in

the black markets and they will have no control over it. If they accept it, and regulate it properly.... they might even profit from it. 

[cr1776]

A problem I see with this, is that the government might perceive Bitcoin as a threat and in reaction they will start to over regulate the

technology to protect their reserve currency. The whole situation was caused by the government making bad political decisions and they might

make even worst decisions when they are threatened. On the other hand, if they react negatively, people will be drawn to this technology in

the black markets and they will have no control over it. If they accept it, and regulate it properly.... they might even profit from it. 

I think the only problem with this statement is using"might" instead of "will" 😀