[2017-03-05] Bitcoin Goes into Hiding in Crisis-Stricken Venezuela

[Gembul]

News Bitcoin - Bitcoin Goes into Hiding in Crisis-Stricken Venezuela

Protests have been ongoing in Venezuela as the country’s economic crisis has only grown far worse over the past three years. In the meanwhile, Bitcoin has been adopted by many in the country to survive

As her foreign reserves fall to $10 billion, Venezuela is on the frontier of where Bitcoin and failing governments collide. The nation’s poverty rate of 82% is double the 46% rate in 2014. Surbitcoin, the nation’s most popular bitcoin exchange service, was forced to cease trading in early February when its bank account was closed. This has since led to a spike in Bitcoin trading on Localbitcoins.

The fact that people have turned to black markets to procure goods amid hyperinflation could have led to the growing interest in the digital currency there. The situation has led to an official exchange rate of 9,900 bolivars per dollar, though on the black market the exchange rate is 4,000 VEF/USD, which includes the bitcoin for bolivars rate. Some have turned to selling the nation’s coins for scrap metal, since it offers a better return than holding onto the money for its fiat value.

READ MORE >>> https://news.bitcoin.com/bitcoin-hiding-crisis-stricken-venezuela/

[veleten]

no wonder,as 90% of venezuelian GDP is oil
since the oil prices fell down there was no chance for the country to sustain same (even if low) level of life
there is a substantial amount of  outside pressure as well
Venezuela is set to beat hyperinflation records-some predict thousands percent increase 4.000-5.000% yearly
once your currency loses its value,people start to look for alternative ways to store wealth and bitcoin seems like a solution