[2017-11-20] People turn to Bitcoin during times of crysis

[Terraformer]

The ongoing turmoil in Zimbabwe reinforces the fact that people around the world are increasingly turning to Bitcoin in times of crisis.

In times of crisis, individuals look to a number of things to help support them through the troubled times. Some of these items include faith, family, and a belief that better times are just around the corner. Another article that people are turning to during a major crisis is Bitcoin.

UNCERTAIN TIMES LEAD TO INCREASING USE OF BITCOIN

The most recent situation where Bitcoin and a crisis intersect is Zimbabwe. The African country is in turmoil after its leader (or dictator, depending upon your point of view), Robert Mugabe, was toppled by the country’s military. The situation is very volatile as Mugabe still has not officially stepped down and has actually called for a cabinet meeting tomorrow, missing a deadline made by Parliament that he resign.

While it’s unknown how the final situation will shake itself out, we do know with certainty that people in Zimbabwe are turning to Bitcoin to address the country’s rampant inflation. In fact, the price of Bitcoin in Zimbabwe jumped to double the international rate after the military coup.

Bitcoin is perfect for Zimbabwe as the country no longer has its own currency due to insane hyperinflation (as evident by a 100 trillion Zimbabwean dollar bill!). Due to zero faith in any governmental institutions, locals are turning to cryptocurrency to fill their needs. As the co-founder of La Maison du Bitcoin, Manuel Valente, says:

In many countries of Africa, there are far more cellphones than bank accounts. For bitcoin, all you need is a phone.

DIGITAL CURRENCY FILLING A DESPERATE NEED

We’ve seen people from different countries in crisis, such as Venezuela and Zimbabwe, using Bitcoin and other cryptocurrencies to buy desperately needed supplies and services. In Venezuela, inflation of 741% in the last year has led to many mining Bitcoin in order to survive. Governmental forces have shut down and arrested a number of crypto mining operations, but the rub is that the government officials are then using the confiscated tech to mine their own cryptocurrency.

In quite a few countries around the world, the political and economic landscape is fraught with peril, and the future is unknown. Government institutions fail with increasingly regularity, leaving the populace with little to no faith in their government.

As Andrew Milne, the co-founder of the Altana Digital Currency Fund (a $22 million hedge fund that specializes in cryptocurrencies), notes:

"Bitcoin is a safe haven for people around the world who don’t trust their governments. There are many countries where people are looking for an asset that isn’t vulnerable to banks blowing themselves up."

The result is that many shops in Africa are now accepting Bitcoin as a payment option. There is also a growing number of local exchange points, and it’s even common for a single person to act as an exchange with just a smart phone and a wallet full of cash. The reality is that as long as governments continue to fail them, people will look to other means, such as Bitcoin, in order to keep their families fed and clothed.

Do you think that a crisis leads to a greater use and reliance upon Bitcoin and other cryptocurrencies? What can people do when their governmental institutions fail them? Let us know in the comments below.

http://bitcoinist.com/blockchain-giant-cashaa-ventures-strategic-partnership-bubblo/

[Guardian.P]

from my personal experience I will say that this is still the best way to survive the crisis. In my country where the average salary is $ 200 per month, it is not possible for yourself to postpone something for the future.

[Lucius]

In countries such as Venezuela and Zimbabwe BTC really becomes currency that people accept more and more.They are simply forced to do that because of incredible inflation and loss on the value of the domestic currency.The only reason people do not use BTC even more in that countries is very large unemployment(in Zimbabwe 90%) and lack of technology.To use BTC people need money and PC/smartphone+internet,and when that becomes more available usage will certainly increase even more.

I remember that I read here on forum that monthly salary in Venezuela is something around 20-30$,taking that into consideration if some user from there join to signature/twitter campaign and earn only 100$ per month BTC makes his life a lot easier then to work in some factory.

[kueyen]

In countries with economic turmoil, it is very normal for foreign currencies to hold more importance than the local currency, because you never know what is going to happen to the local currency. The people try to hold onto whatever money they have, and since bitcoin is relatively safe, the people of course turn to it.

[Sitkack]

from my personal experience I will say that this is still the best way to survive the crisis. In my country where the average salary is $ 200 per month, it is not possible for yourself to postpone something for the future.

I save about 5% of salary into bitcoin every month for the future.

[glowing10]

from my personal experience I will say that this is still the best way to survive the crisis. In my country where the average salary is $ 200 per month, it is not possible for yourself to postpone something for the future.

I save about 5% of salary into bitcoin every month for the future.

This is the best way to invest every month. Keep aside a small % of your income monthly and invest in this cypto currency. it will help you at the time of need or in the long run as the btc uptrend continues making your investment grow and you will end up richer than before.

[Jating]

Its has been reported already that countries like Venezuela and Zimbabwe are really into bitcoin. In Venezuela where the economic depression due to politics is still ongoing as of this time, people can't even used their money because its useless. Solution? Used bitcoin outside of the country to buy goods in order to survived. I read one Venezuelan's claiming that even their bank or Central banks is mining bitcoin as well, but this is just a rumor.

On the side of the Zimbabwe, its the same, people getting oil, food and water with their bitcoins as well. You can go back about 1 and half month ago and you will see that bitcoin in Zimbabwe is an a premium. This is really a case study on how bitcoin can really help not just individuals but a whole nation in times of crisis.

[greeklogos]

from my personal experience I will say that this is still the best way to survive the crisis. In my country where the average salary is $ 200 per month, it is not possible for yourself to postpone something for the future.

I understand you, comrade. Bitcoin appeared in 2008 year in the moment of big world's crisis and this fact explains everything already. Yes, bitcoin helped to many people from countries with low salaries and now altcoins are raising it's power and to somebody exactly alts became a source of wealth. We should to thank Mr. Satoshi who created this all and we should to promote crypto currencies to they would be acceptable worldwide.

[Kajevy]

Bitcoin will effect good in Africa because in some countries you can live good life with 500$ / Month

[Fizpok]

It should be mentioned, that Bitcoin is good in time of MILD crisis. If you do not have access to Internet, if your government blocks Internet of access to block chain, or if Internet itself is worldwide down, Bitcoin is useless. In the last case it is also gone.

[OlyaBTC]

from my personal experience I will say that this is still the best way to survive the crisis. In my country where the average salary is $ 200 per month, it is not possible for yourself to postpone something for the future.

It is solid, only in my country the minimum (officially) salary is 118 US dollars

[Sanutos]

from my personal experience I will say that this is still the best way to survive the crisis. In my country where the average salary is $ 200 per month, it is not possible for yourself to postpone something for the future.

I save about 5% of salary into bitcoin every month for the future.

This is the best way to invest every month. Keep aside a small % of your income monthly and invest in this cypto currency. it will help you at the time of need or in the long run as the btc uptrend continues making your investment grow and you will end up richer than before.

I mine some altcoin and convert them into bitcoin every month.

[Gotottack]

The ongoing turmoil in Zimbabwe reinforces the fact that people around the world are increasingly turning to Bitcoin in times of crisis.

In times of crisis, individuals look to a number of things to help support them through the troubled times. Some of these items include faith, family, and a belief that better times are just around the corner. Another article that people are turning to during a major crisis is Bitcoin.

UNCERTAIN TIMES LEAD TO INCREASING USE OF BITCOIN

The most recent situation where Bitcoin and a crisis intersect is Zimbabwe. The African country is in turmoil after its leader (or dictator, depending upon your point of view), Robert Mugabe, was toppled by the country’s military. The situation is very volatile as Mugabe still has not officially stepped down and has actually called for a cabinet meeting tomorrow, missing a deadline made by Parliament that he resign.

While it’s unknown how the final situation will shake itself out, we do know with certainty that people in Zimbabwe are turning to Bitcoin to address the country’s rampant inflation. In fact, the price of Bitcoin in Zimbabwe jumped to double the international rate after the military coup.

Bitcoin is perfect for Zimbabwe as the country no longer has its own currency due to insane hyperinflation (as evident by a 100 trillion Zimbabwean dollar bill!). Due to zero faith in any governmental institutions, locals are turning to cryptocurrency to fill their needs. As the co-founder of La Maison du Bitcoin, Manuel Valente, says:

In many countries of Africa, there are far more cellphones than bank accounts. For bitcoin, all you need is a phone.

DIGITAL CURRENCY FILLING A DESPERATE NEED

We’ve seen people from different countries in crisis, such as Venezuela and Zimbabwe, using Bitcoin and other cryptocurrencies to buy desperately needed supplies and services. In Venezuela, inflation of 741% in the last year has led to many mining Bitcoin in order to survive. Governmental forces have shut down and arrested a number of crypto mining operations, but the rub is that the government officials are then using the confiscated tech to mine their own cryptocurrency.

In quite a few countries around the world, the political and economic landscape is fraught with peril, and the future is unknown. Government institutions fail with increasingly regularity, leaving the populace with little to no faith in their government.

As Andrew Milne, the co-founder of the Altana Digital Currency Fund (a $22 million hedge fund that specializes in cryptocurrencies), notes:

"Bitcoin is a safe haven for people around the world who don’t trust their governments. There are many countries where people are looking for an asset that isn’t vulnerable to banks blowing themselves up."

The result is that many shops in Africa are now accepting Bitcoin as a payment option. There is also a growing number of local exchange points, and it’s even common for a single person to act as an exchange with just a smart phone and a wallet full of cash. The reality is that as long as governments continue to fail them, people will look to other means, such as Bitcoin, in order to keep their families fed and clothed.

Do you think that a crisis leads to a greater use and reliance upon Bitcoin and other cryptocurrencies? What can people do when their governmental institutions fail them? Let us know in the comments below.

http://bitcoinist.com/blockchain-giant-cashaa-ventures-strategic-partnership-bubblo/

I cannot but agree to this. I believe inflation is due to a government's response to combat the increase in prices in trade and commerce worldwide. Prices of goods reach sky high because people from around the globe unknowingly create chains to facilitate trade and commerce. Otherwise stated, the producers and consumers do not meet eye to eye because there a lot of merchants between them. Hence, some, if not all, governments strategize by bringing about the concept of inflation. Nonetheless, this strategy has come to a point where it will indefinitely lead to more inflation as days go by. To stop it, we have to cut the huge chains that exist between producers and consumers. We can only do so by connecting the world through a unified digital currency.

[richardsNY]

Bitcoin is an easy to obtain safe haven asset in times people need it. It takes me just a minute or two to purchase Bitcoin and to have it land into my wallet, which gives me an ultimate form of convenience and piece of mind, knowing that Bitcoin is always easily accessible for me. I remember how back in the days I had to sign up to an exchange, deposit fiat, wait one-two business days for the deposit to post, and then finally be able to buy Bitcoin. Things have been moving forward pretty quickly with new services popping up, where they mostly all contribute to this fantastic ecosystem.

[Benezim]

Bitcoin is an easy to obtain safe haven asset in times people need it. It takes me just a minute or two to purchase Bitcoin and to have it land into my wallet, which gives me an ultimate form of convenience and piece of mind, knowing that Bitcoin is always easily accessible for me. I remember how back in the days I had to sign up to an exchange, deposit fiat, wait one-two business days for the deposit to post, and then finally be able to buy Bitcoin. Things have been moving forward pretty quickly with new services popping up, where they mostly all contribute to this fantastic ecosystem.

Would you mind sharing your way? I live in a well developed metropolitan city in Asia. We have BTC ATMs here that charge 9% on the daily average price. The local BTC/fiat exchange has their bank accounts frozen at least once a month and changes bank accounts like other people change their underwear. I don’t have real problems obtaining BTC after all, but there are countries where fiat/crypto gateways are illegal and where people may not have bank accounts / credit cards. Especially true when talking about crisis countries (this article)

[Falgorn]

New digital technologies, such as crypto currency, really help people at a critical time for the country's economy to survive and protect themselves from hyperinflation. Although bitcoin in Zimbabwe has also grown decently compared to its value in other countries. According to the latest news, the president of this country Mugabe still resigned, which will make it possible to defuse the situation and quietly curb inflation. However, the positive moment in this situation is that people have estimated the advantages of crypto currency, and now they are unlikely to switch to the use of ordinary thought money.

[rjbtc2017]

If that's the only option of Venezuela and Zimbabwe to survive, then why not. I don't see any problems that may occur on that Set up, The only thing i see is Bitcoin's volatility, it may hurt these people if they are not yet knowledgeable enough on managing their Bitcoin ,they should learn the movements of Bitcoin and stay updated on the recent events surrounding Bitcoin since the price of Bitcoin in Zimababwe is much higher than the international rates, any slight downward movement will surely hurt them.

I don't mean that i do love what they are experiencing right now but I am happy that someone educated them to use Bitcoin for their needs. This particular event may change other people's perspective on what Bitcoin is and what Bitcoin can do to a certain country.

"Governmental forces have shut down and arrested a number of crypto mining operations, but the rub is that the government officials are then using the confiscated tech to mine their own cryptocurrency."

This is not funny, why don't they help each other to fight the crisis they are currently facing?, Their Government is still hard as stone to accept that Bitcoin is becoming the primary currency on their Country. I just hope everything goes fine on Zimbabwe and Venezuela.

[iamTom123]

In countries such as Venezuela and Zimbabwe BTC really becomes currency that people accept more and more.They are simply forced to do that because of incredible inflation and loss on the value of the domestic currency.The only reason people do not use BTC even more in that countries is very large unemployment(in Zimbabwe 90%) and lack of technology.To use BTC people need money and PC/smartphone+internet,and when that becomes more available usage will certainly increase even more. I remember that I read here on forum that monthly salary in Venezuela is something around 20-30$,taking that into consideration if some user from there join to signature/twitter campaign and earn only 100$ per month BTC makes his life a lot easier then to work in some factory.

These two economically drained countries are two great example of how Bitcoin can really be of use...who said that Bitcoin is only good as store of value should reexamine their position based on what is happening with these countries and how Bitcoin literally became a savior of the many. Stories like these are actually inspiring us in the whole Bitcoin community to unite as one family so we can solve the many challenges thrown the way of Bitcoin especially the scaling problems which lead to higher fees imposed by the service providers. Definitely, Bitcoin is not perfect but it can be that bringer of light when many other man-made systems are failing.

[Oo ako to]

Inflation is what really kills people everywhere in the world. The governemt just print unlimited paper money as long as they want that makes the value cheaper that isn't enough to even buy a decent meal.  This is really a great time for bitcoin to exist and this will end crisis that always happen everywhere.

[CryptoBry]

The ongoing turmoil in Zimbabwe reinforces the fact that people around the world are increasingly turning to Bitcoin in times of crisis. In times of crisis, individuals look to a number of things to help support them through the troubled times. Some of these items include faith, family, and a belief that better times are just around the corner. Another article that people are turning to during a major crisis is Bitcoin.

Soon Bitcoin will be known as one of the most reliable help in times of economic and political turmoil as proven right now in the ongoing saga happening in Zimbabwe and Venezuela. In the coming many years, this effective role of Bitcoin will be magnified in many countries that are not really stable. We should be watching on how dramatic Bitcoin can be extending some helping hands for people to escape oblivion under the man-made economic systems we are having. No wonder many people are saying that Bitcoin is really here to stay.